What next for hardware? Kenrick's Mike hill looks for ways to buck the market trend

There has been widespread coverage of the current downturn in the PVC-U-U window and hardware industry. The figures speak for themselves - there have been reports that the industry experienced a 20% downturn in 2005 compared to 2004, with more of the same expected in 2006.

Bucking the trend

What the industry needs to do in 2006 is look at ways to buck this trend, through innovation and customer service.

Consumer confidence is low. Despite many retailers reporting a good Christmas, the overall picture during 2005 was one of a slowdown in consumer spending. It is clear how this impacts on the hardware industry. If consumer confidence is low, less money is going to be spent on replacement windows, and therefore the PVC-U-U market naturally becomes more competitive.

The housing market also naturally has an effect. Following the 'boom' in house prices, we are now experiencing the expected slowdown. If fewer people are moving house, again, they are less likely to invest in replacement windows.

So, how can the hardware industry run against major national trends?

Quality

Firstly, we need to be realistic. We are not going to change the current situation overnight. The fact is that prices are being driven down, and buying decisions are being made on cost, rather than quality.

We operate in an industry where things should be built to last. By compromising on quality, window fabricators could find themselves with even bigger problems further down the line.

Products

with some innovation, new products based on a real market need and improved customer service, there are ways to buck the downward trend

This is why innovation and new product development are key. Investing in new technology should not stop. However, hardware manufacturers should not be creating new products for the sake of it if there is no market need.

Kenrick is aiming to release five new products in 2006 and each is based on solid market research. Our focus is very much on R&D as we recognise the need to accurately target what we offer to our clients.

Customer Service

Another area that hardware companies can focus on, is customer service. Good customer service can be measured in terms of sales figures, and its impact on the success of a company cannot be underestimated.

In an increasingly competitive marketplace, where sometimes loyalty is playing second fiddle to price, hardware companies should be focusing on how it treats its existing customer base. This is something Kenrick has paid particular attention to and will continue to do so in 2006.

Help from the government Looking to the wider building industry, the Government and legislators can help by creating a wider awareness of Secured by Design (SBD). As a holder of the license, Kenrick can promote its products as having 'police preferred specification'. However, there is limited awareness of this standard outside the window industry. It seems that a trick is being missed here. The SBD license should be seen as an aid to selling to the consumer, as security is a major concern for many homeowners.

In this increasingly price conscious marketplace, anything that increases market awareness of security and quality must be a good thing, so it would be good to see the SBD license receive increased Government focus.

2006 looks set to continue the trends of 2005. However, with some innovation, new products based on a real market need and improved customer service, there are ways to buck the downward trend. Although we need to focus on what is going on in the industry now, we must never forget to look to the future, as long as it is done in a realistic way.