Morty: im disappointed but not surprised: Gary Morton on status, premier, and market consolidation

Gary Morton’s down-to-earth management style has been a strong influence on the UK window market for many years, bringing the Premier and Status brands to prominence, and a number of window systems to market.

Sadly, consolidation looks set to remove both operations from the landscape, many years after Gary helped to put them on the map: Premier, which Gary managed until 1991, has ceased trading. And Status is to be integrated into parent company Deceuninck, several years after the takeover made him CEO of both companies in the UK.

These days Gary maintains a number of businesses downstream and is extremely active as a charity fundraiser. Later this month, he will undertake a charity cycle ride from John O’Groats to Land’s End accompanied by 10 other industry names. Proceeds will help support the two Hope House Children’s Hospices, which care for terminally ill children from Cheshire, Shropshire, North and Mid Wales.

In the following interview, Gary gives his view on the recent events and talks about his current activities.

When did your association with Deceuninck end?

Gary Morton: It ended entirely in December last year. For two years prior to that I was working one to two days per week on an advisory basis.

It’s a long time since you were at the helm but Status is still seen as your baby.

I think I’ll always be associated with it but given that Deceuninck have owned it as a group for six years it’s probably not quite so much that way anymore. I think what they’ve done really has quite compelling commercial logic. I’m not sure about the structure, though they will probably sort that out in the coming months, but I think what they’ve done has been to safeguard the long term future of the business. But it’s a shame it got to that point.

A few years ago we were told that Status was expanding its extrusion capacity and was on course for a new factory.

At that point in time that’s what the plan was, but this was of course before we faced such a sizeable downturn in the market. Consolidation has led to a tighter market from a margin perspective.

They did develop it along the lines of Status and Deceuninck approaching different size businesses, but that’s what I don’t think has worked.

In addition to that there’s been great pressure on margin because of raw material cost increases. So they’ve been faced with passing on increases to a market that is reducing and to get a bigger share of the cake, what companies generally do is drop their prices. In these circumstances, it was probably inevitable.

Having said that, for me it’s a very sad day because of my association with the business. I was responsible for employing a lot of the people who are now going to be out of work. Out of all of it, at the end of the day, they are the ones who will suffer most.

I know that Deceuninck have a strong social conscience and they’re doing an awful lot to try and re-house those people into other jobs, which has to be applauded. But it’s inevitable that some will end up out of work, and for me that’s the saddest thing of all about it.

For quite a while now Status seems to have been merely a different face of the same company. Status’ zendow is identical to Deceuninck’s System 3000.

I think from a market perspective the move has been preceded – the fact that they’re both selling and distributing the same product under a different brand name adds weight to that argument.

They did develop it along the lines of Status and Deceuninck approaching different size businesses, but that’s what I don’t think has worked. If a salesman has a product, he’s going to try and sell it regardless of whether that business is selling less than or more than a required figure. So I think this strategy was somewhat flawed.

But given that they set out on this path and given that the market has been squeezed at both ends, then what has happened has great commercial logic. I hope it works because I’ve got a lot of respect for the Group.

Besides Status, you must be disappointed that Premier has ceased trading.

I am, very. I suppose you could say I’ve been responsible for those two brands in the marketplace and it’s really sad to see them go, but it’s not about me. It’s about the workforce, and it’s inevitable that some will lose their jobs and that’s the saddest thing.

it’s inevitable that some will lose their jobs and that’s the saddest thing.

A lot of people think that the consolidation we are seeing now is long overdue.

You could argue that given the way the market is projected to go, it’s quite healthy that all this kind of stuff happens, and others will go out of the market as well, which creates opportunities for the fitter businesses. Together these companies will form a much bigger, more dominant operation. It will be difficult, but I truly hope they pull it off.

What are your other business interests, and are you quite hands on with them?

I have a window business, a conservatory roof business, a property business, and a consultancy. The businesses all have their own managers, so no; I am not hands on at all. In addition, obviously there’s the charity work, which probably takes up 15 per cent of my week. Everything I’ve done for the past year has been for the Hope House Hospice and at this moment I don’t see why that should change.

What is it like going from managing systems companies to being a customer, albeit a very influential one?

I wouldn’t say I was a very influential one but I am a customer, and when there are problems I experience them first hand. I think loyalty’s a big thing but it’s a two way street of course.

How long will it take you to complete the bike ride?

13 days. We start on the 6th of June and finish on the 18th in Land’s End, doing 75-80 miles a day.

How much training have you done?

I’ve been responsible for those two brands in the marketplace and it’s really sad to see them go.

I’ve been doing 150-200 miles a week for the past ten to twelve weeks and I’ve been cycling regularly for the past year. If you take something like this on you’ve got to enjoy it, and I don’t think you do unless you go through the pain of training for it beforehand.

Having done all that, I’m sure it’ll be very difficult and I’m sure I’ll suffer. But it’s an achievement and I’m glad I’ve been able to convince another 10 people to do it with me. In addition we’ve got 32 stage riders.

The intention is to make it a pleasurable experience, so people will talk about it positively and that way we can make it an annual event.

We’re hoping to raise around £35,000 from it. It’s going to be worth it for the kids.

Finally, you must be ecstatic about West Bromwich Albion staying up in the Premiership.

I didn’t think for one second that they would and from Christmas onwards, even though they made a big recovery, I thought it was too big an ask. Which just goes to show that I can be wrong occasionally!!

So I’m absolutely delighted and would like to see them consolidate now. To round it off Wolves stayed down, so it was a great season. The business lesson there is never give up.

To sponsor Gary email gary@garymorton.co.uk. For more about Hope House Hospice visit www.hopehouse.org.uk