Is your IGU supply chain secure?

Could a series of pinch points for manufacturers put your IGU supply at risk?

IGU manufacturers have faced challenge after challenge. Disrupted supply, energy price rises, cuts to subsidies, rising employment costs and now the increase in the National Minimum Wage and jump in National Insurance.

According to commentators – against the backdrop of a still difficult market – that creates a potential crunch point for installers later this year, as their IGU supply is disrupted.

“It’s a challenge for any manufacturer,” says Jody Vincent, sales director, Emplas. “The increase in the National Minimum Wage this April delivers a particular sting in the tail.

“IGU manufacturers have limped on despite tough market conditions and high operational costs, but they’re stretched. We’ve already seen casualties and I don’t think for a moment we’ve seen the last.

“That has the potential to leave installers exposed, unable to complete jobs or paying a premium for IGUs, later this year as the market recovers, putting their businesses at risk.”

What’s happening to the National Minimum Wage and National Insurance?

Effective from April 2025, the National Minimum Wage (NMW) and National Living Wage (NLW) increased from £11.44 to £12.21 per hour, for anyone aged 21 and over (National Living Wage) – that’s a 6.7% rise. There’s also a 16.3% rise for 18–20-year-olds and an 18% rise for 16 and 17-year-olds.

For a full-time employee aged 21 or over, working 37.5 hours per week, this increase translates to an annual salary rise from approximately £22,308 to £23,809.50, an additional cost of £1,501.50 per employee.

On top of that and with a far wider impact, employer’s National Insurance Contributions increase from 13.8% to 15%. This combines with a lower threshold at which employers start paying NICs, which will decrease from £9,100 to £5,000 per year. On a salary of £30,000 per year, this would add around £850 cost per employee.

“A lot of IGU business remains labour heavy,” continues Jody. “An increase in cost in National Insurance of £800 plus is a bitter pill to swallow in a lack lustre market.

“Consolidation is likely as some owners decide that the economics don’t work for them anymore, while others may find that their hand is forced.

“That is likely to create disruption and potentially as the market recovers, pressure on supply.”

Emplas announced the installation of a second Forel vertical IGU line in April. It gives the trade fabricator one of the UK’s most advanced IGU lines and doubles capacity, also increasing automation and improving product quality.

It includes the Forel vertical washer, and Emplas has also opted for Forel’s Art AS flexible spacer applicator.

This automatically applies spacer bar to the edge of the glass sheet with an ultra-high level of accuracy. It is designed to deliver an instant and far better bond than traditional spacer systems, maximising thermal performance.

The Forel coupling press then simultaneously couples IGUs while filling them with gas ahead of automatic sealing, delivering a highly accurate final seal on units and significantly reducing the likelihood of failure.

“It gives us capacity to increase supply without compromising on product quality as well as delivering reliability in supply. It’s not about taking people out of the process but it is about reducing the risk of error. Increased automation does that.”

If the start to 2025 has been slower than many might have hoped, Jody suggests another regulatory change may offer installers increased opportunity in the medium term.

At the same time as the Government was introducing the increase in the National Minimum Wage, Ofgem, the energy regulator was increasing the energy price cap by 6.4%. This delivers an increase in the average energy bill for a typical household from £1,738 to £1,849.

“There is a growing acceptance amongst homeowners that higher energy prices weren’t a blip but are here to stay for the long term,” Jody says.

“That makes energy efficiency an even more important driver for the home improvement market going forward, generating opportunities to upsell on glass.”

Emplas supplies a comprehensive range of products from Saint-Gobain. This includes Planitherm Standard, Comfort and Comfort Plus.

The case for buying in glazed frames

Installers have historically chosen to buy glass and frames separately because it has allowed them to work with local or regional suppliers.

“The pressure on the IGU supply chain makes that model more far more fragile,” Jody says. “It also brings increased complexity to your business.

“Buy in from us and you can order frames and glass 24/7 through EVA our customer portal, track deliveries and get real time notifications 30 minutes before arrival.

“There’s one order to place so less room for error; no marrying up glass and frames; and only one invoice to pay. It simplifies running your business.”

“The market hasn’t been easy, but it is picking up,” he concludes. “The challenge is that improved trading conditions may come too late for a lot of IGU manufactures and manufacturers in general.

“If you don’t have to worry about the stability of your supply chain and you don’t have to worry about the potential disruption losing your IGU supplier could cause, you can concentrate on capitalising on the opportunities that an improving market delivers.”