Will Q3 see an increase in demand and activity?

With new construction orders rising and two more interest cuts widely predicted this year, the third quarter of 2025 could mark a turning point for the glazing industry. But Cornwall Group is warning that for businesses caught unprepared, supply constraints and price volatility may dampen any gains.

“We’re going to be entering into a different period in the next six months,” says Cornwall Group chairman, Mark Mitchell. “I’m not suggesting it’s going to be a bad period. In fact, I think we’ll see some much-needed stability return to the market, albeit through a rather unconventional route.”

The early signs are already there. While the S&P Global UK Construction PMI fell to 44.6 in February – pointing to an overall contraction – new order levels are rising. And according to the Office for National Statistics, new construction work orders jumped by over 26% in Q1, totalling £11.6 billion.

But Mark remains pragmatic. “It’s predictable bonkers,” he says. “We’ve gone from low demand and low prices to what I think will be a sharp upswing in demand at precisely the time when supply is constrained. It’s the market turning on its head, again.”

At the same time, new economic headwinds are emerging. Inflation is once again climbing, now approaching 4% – a level not seen since early 2023.

“What we’re seeing now is the consequence of accumulated cost pressures: successive price hikes, compounded by substantial increases in payroll costs,” Mark says. “It’s the sort of climate that starts to shake confidence.”

Labour costs also remain a flashpoint: “Each year, we’re expected to accommodate minimum wage uplifts with barely six months’ notice,” Mark notes. “This makes it extremely difficult to project costs or set meaningful budgets as you’re essentially building financial plans on quicksand.”

He adds that for Cornwall Group, preparation has been everything, with the business spending the last 12 months making strategic investments that now look particularly prescient.

A new toughening plant at Forward Glass in Birmingham is set to come online this summer, increasing production capacity at a time when supply of key glazing products – particularly float and soft coat glass – may come under strain due to European float line shutdowns.

Industry insiders are once again using the word “allocation” – a signal that customers may not be able to get what they want, when they want it. Mark believes that long-term relationships are what will make the difference in the months ahead.

“We have loyal partnerships with our suppliers – it’s the reason we got through the last period of shortages and the reason we’ll get through the next. Our suppliers rewarded our loyalty and looked after us, and in turn, we looked after our customers.”

That approach, built on loyalty and stability, has defined Cornwall Group’s strategy. Even as manufacturers introduced successive price hikes this year, Cornwall held firm.

“We’ve tried to offer customers absolute stability,” says Mark. “We are absorbing as much as we can to best equip our customers for when demand bounces back.”

According to Mark, the glazing sector is showing signs of change, with triple glazing is gaining ground, energy regulations tightening, and market demand shifting toward higher-specification products. But Mark is also clear-eyed about the real differentiator.

“This isn’t about who has the cheapest glass. It’s going to be about who can supply it, and who you can trust to do the right thing when things get tight.”