Keystone Lintels comment: Q3 2017

Quarter three 2017 sales compared with the same period in 2016 are slightly skewed as a result of merchants purchasing ahead last year to beat late summer price increases. The results show slightly less volume for 2017 versus the same period last year, although merchants are still reporting growth. Encouraging, but not flattering, Q3 has been a couple of percentage points better than the strong Q2, indicating a fairly flat but consistent year since March. October, and week to date November show more of the same. I reported last quarter on the interesting trend towards non-standard lintels, special lintels and thermally efficient lintels and this trend continued.

The house building sector has increased consumption of thermally performing lintels over the quarter. This is a trend which promises to continue as more 2018 specifications are adopting this unique type of lintel. The ‘Fabric First’ approach is helping to drive specification change, along with merchant supply chain partners and competitive pricing. Merchants who put stock on the ground to service sites are earning the rewards by selling a greater mix of thermally performing lintels. The biggest day-to-day risk is the supply of other heavy building materials which can encourage some builders to buy timber frame, even at higher costs than traditional build.

Enquiries dipped slightly this quarter, which is in line with previous years due to the summer holidays, however year to date numbers are still ahead of 2016. These enquiries are the life blood of the business. Increased product availability for larger house builders and increasing costs are slowing the productivity of the RMI market. The work is there, but the combined factors of product availability, price and accessible labour are holding RMI back.

Compliance to standards and regulations are a huge risk, with in-depth knowledge possibly lacking for new products such as thermally performing lintels for example. Even CE marking on structural products is not fully understood, so we’re working with merchant partners to raise awareness on product certification, product specification and, equally important, pound note earnings.

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