A new survey from LB Roof Windows has found that while businesses are expecting an increase in the number of projects they will take on over 2015, views on profit margins are less optimistic.
LB Roof Windows teamed up with building industry data specialist, Insight Data, after it was reported by the Institute of Financial Studies (IFS) that average household incomes have now reached pre-recession levels. The roof window and roof dome supplier wanted to find out how companies in the industry think the current situation will impact their activity.
To this end, around 12,000 builders and installers were contacted with a number of questions regarding their expectations for 2015. The research found that the majority of respondents were overwhelmingly positive, with over 54% stating they are expecting the number of projects to increase considerably this year, and over 37% anticipating they’ll be a little busier than in 2014.
However, attitudes toward profit margins are less positive, with only a third believing these will be much better in 2015 compared to last year, with half of the respondents saying their profit will only be
“slightly better” than in 2014.
Adrian Cooper, sales director of LB Roof Windows, said:
“Although the market is on the rise, builders feel pressurised to keep their prices down in order to maintain their competitive edge. This trend is highlighted by their expectations for 2015, which show that even if there is more work available, this is not 100% reflected in their profit margins.”
The survey also showed that most companies (75%) expect the price of materials and home improvement products to increase to a certain extent this year.
Mr. Cooper added:
“One solution is to focus on building materials and home improvement products that deliver better value for money. An example is our Aurora Roof Window, which is becoming increasingly popular as a more competitively priced alternative to the well-known Velux brand, while delivering similar benefits. Aurora Roof Windows are helping more and more trade customers protect their margins, and keeping homeowners happy.”
Both Aurora and Velux are manufactured by the VKR Group, and LB Roof Windows is a supplier of both. The company recently reported a spike in demand for the Aurora Roof Window due to its competitive price and quality.