By Russell Yates, managing director, AluK.
Aluminium fabricators are already faced with a bewildering array of imported systems – and now we have news of a major systems company moving production out of the UK and switching UK customers to products imported from Europe.
That makes AluK one of a vanishing number of UK-based systems companies which relies entirely on UK extrusion and has its own production, paint, stock and service all in one place. And I can reassure all our customers that we have no intention of changing that.
In the commercial sector, multi-sourcing makes perfect economic sense in terms of securing the project based on the system specified. But I would argue that it makes less and less sense in the trade sector.
I appreciate that the market is challenging and that the promise of cheaper product from lower cost overseas environments can be tempting, but the best way to stay competitive when you’re under price pressure is to simplify your supply chain – not to complicate it.
Ironically, since Brexit, we’ve seen imports of aluminium product into the UK rising steadily, with some trade fabricators now buying from two, three or even four different suppliers.
Not only does that leave them vulnerable to the kinds of supply chain shocks we’ve all witnessed in recent years – from Covid to global conflicts – it also adds layers of unnecessary and expensive complexity to their businesses.
Some would argue that it’s a buyers’ market, with fabricators under the same dual or triple sourcing pressure from their installers as they are putting on systems companies.
But, for any type or size of fabrication business, managing more than one systems company takes time and resource. Coordinating multiple suppliers with different lead times, shipping methods, customs procedures and minimum order quantities is a self-inflicted headache.
Trade and retail fabricators buying from overseas are not just at the mercy of late deliveries and slow response times, but any problems caused by quality and service issues are multiplied when the product is being manufactured hundreds or even thousands of miles away.
I can appreciate the cost pressures that UK fabricators face, but the solution to those pressures isn’t to add further cost by over complicating their businesses. I would argue that there are much more significant cost savings to be made by embracing new technology, managing their cost base, tightening controls and protecting cash flow rather than multi-sourcing, especially from overseas.
Working with one UK based systems company massively simplifies supply chain management and gives fabricators one fully-accountable point of contact committed to building a partnership and adding value.
Of course, that systems company has to be able to support fabricators’ efficiently and have a broad enough range of products to enable their customers to win business and be competitive across multiple sectors.
At AluK, we’re in the midst of a project to simplify our product portfolio into core platforms which our customers can stock in depth not breadth. With platforms like the 58BW/BD and our C70S systems, customers can keep three of four profiles in stock to meet the vast majority of demand and then add in
Heritage, door or commercial profiles when required. All the main hardware and components are the same so fabricators spend less on stock as well as saving money by dealing with just one supplier.
This is ongoing and we will be keeping customers updated as we deliver further efficiencies which they can lever to their advantage. In a tough market, we’re committed to investing in the kinds of products, support and services which help our customers make money.
