Customers of the main glass manufacturers suffered the fourth price increase of 2006 when Guardian announced a price rise in December, triggering a response from competitors.

Pilkington, despite giving assurances that it would not introduce a rise before Spring 2007, contacted customers in December to announce a price rise. This is effective from 15 January and includes a 15 per cent rise on float glass types with lesser percentages on coated and processed glass.

Sympathy?

Those sympathetic to the glass manfacturers point to the current European glass shortage caused by high demand and lessened manufacturing capacity due to a number of Pilkington and Guardian float lines being out of action or in need of repair. In the current situation, if one supplier raises prices, the others follow because they cannot service the extra demand. Many also agree that glass has been underpriced in recent years, following Saint Gobain and Guardian’s moves to make inroads into the UK market.

David Pinder, Managing Director of Pilkington Building Products, UK, speaking in November, was not precise about the next rise but told Glass Age: ‘A well structured price rise next Spring should be easier to digest.’

The proprietor of one small sealed unit manufacturer telephoned the Glass Age office to explain his company’s situation. He wished to remain anonymous but said:

‘February is the poorest month in the calendar. Glass manufacturers should give us a chance to recover from the last increase in October.’

Damage limitation

In response to price rises, this customer has been spot buying glass in bulk. Buying large quantities of glass before the price rises become effective is is a way to avoid high prices for a short time, but doubling his holding of glass creates stock control and cashflow issues for the business.

Source

Glass Age