After almost halving in the last five years, there is finally a glimmer of hope for the German window market. This upswing is due to the improving economic situation as well as a growing demand for renovation in Germany, according to the latest study from the Interconnection Consulting Group.

With a decline of 6.6% in quantity and 2.2% in value, 2005 seemed to be the low point for the German window market. For the first time in years there will be a slightly positive growth in volume of 0.2% in 2006, rising to 1.2% in 2007 and 5.5% in 2008.

Only the fittest, most flexible and best supported German companies have survived the slump. The most casualties were among small and medium-sized companies, many of which went bankrupt or were bought by larger window manufacturers.

Untapped potential

From 2005 to 2008, the renovation market will grow by almost 9%, while in the same period new construction will increase by 4%. The large number of old buildings in Germany with poorly insulated old windows hold an enormous, still untapped potential for the window industry, since approximately three quarters of all apartments in Germany are more than 25 years old.

Another reason for this prediction is that from 2006, households are entitled to write off 20% of the bills from tradesmen against their tax liability up to a EUR 3,000 limit.

The abolition of the subsidy for new homes has had a less negative effect on the demand for new construction than previously feared.

Source

Glass Age