Howarth Windows and Doors: Dealing with a downturn

Source: Construction Digital

Date :01/12/2008 00:00:00

The economic downturn has affected many businesses, but some are better equipped than others to deal with its dilemmas. Alan Shearer tells Exec about the impact of changes in the market

Written by Fiona Nicholson and Produced by Nicholas Davies

Howarth Windows and Doors manufactures timber windows and doors for the new build property market. Part of the Howarth Timber Group, the company started up in 1985 and has built a solid reputation based on its high quality products. However, the downturn in the property market and the global credit crunch has created substantial challenges for the construction industry and in turn, for businesses such as Howarth Windows and Doors.

“The industry has gone through some torrid times recently, which have affected the whole house buying sector,” says General Manager, Alan Shearer.

And the tough times will not be over for some time to come. “We are not expecting a quick recovery, as people will not be looking to move house until the market has bottomed out and that hasn’t happened yet.”

Despite the impact of the downturn, Howarth Windows and Doors remains one of the industry’s most sought after suppliers. “Our turnover was £7.5 million last year and our order book is as full as it has ever been,” says Shearer.

EFFECTS OF THE CREDIT CRUNCH

But the company is not immune to the problems experienced by its customers: “Developers have slowed right down and we don’t know when some property developments will start to progress again. Some have been put on hold till next year so, whilst the long term order book is strong, current volumes are down,” says Shearer.

He continues: “The build rate has dropped dramatically. Previously, with some customers, four to five plots were being developed per week. Now we are seeing completion of only two plots every three months.”

While Howarth Windows and Doors awaits the go ahead on orders already received, business development continues, although the credit crunch has introduced dilemmas here, too.

“Winning new business has become more difficult in the current market,” says Shearer. “Everyone has started lowering their prices to get the contracts, which makes it harder to compete.

“We’re also finding that although the market is much quieter, our sales office has got much busier. The reason for this is that customers who would usually source their requirements from the same supplier are now seeking quotes from a wide range of other suppliers, to see where they can get the cheapest deal.

“This means that our enquiry rate has gone up by 10 percent, so we are busy quoting for more jobs than usual. But what we are finding increasingly commonplace is that people are then delaying making a decision about who to buy from, or we discover that the project that we quoted for has been mothballed.”

OUT OF THE WOODS

However, its longstanding experience of the industry means Howarth Windows and Doors has seen it all before. The company has therefore adapted its business strategy to address current circumstances and is forging ahead with new plans.

“Although there has been a recent shift in focus towards cost as the prime factor, homebuyers still view energy efficiency as a high priority,” says Shearer. “As a result, we have invested in developing more energy effective products, to make our windows as thermally efficient as possible.

“So we were delighted when each of our three main product ranges were awarded an “A’ rating by the British Fenestration Rating Council, which measures the energy performance of windows.”

Howarth Windows and Doors is also targeting new markets and looking at new ways of tapping into customer demand.

“A company that sells PVC windows is keen to expand their range to include timber windows and has approached us about being their supplier,” says Shearer. “We estimate this could provide us with 20-30 new customers each week, with the advantage that we would not have to be involved in the distribution or administration.”

He adds: “We are also doing more housing association work, as this market is still thriving; and we are targeting other sectors, such as retail, where some companies are showing an interest in timber windows instead of using PVC versions.”

BRANCHING OUT

Howarth Windows and Doors employs a workforce of 105 employees at its premises in New Holland, Lincolnshire and staff retention levels are high, as Shearer observes: “Many of our staff have been with us for 10, 15 and even 20 years,” he says.

Staff development is a key focus for the Investors in People accredited company.

“Retaining the right people is very important to us and we want our staff to keep developing their skills and learning more about the business,” says Shearer. “We also want to make their jobs more interesting, so it’s not always just about working with wood.

“In the last year, 65 of our staff gained NVQs at levels one, two and three and we have encouraged them to study subjects such as business improvement techniques. We are also keen for our staff to develop their IT skills and have set aside a training room with around eight terminals.”

WOOD WORKS

Two of the company’s other assets include its ability to innovate and the quality of its product, which Shearer firmly believes is the best choice available.

“You can’t beat timber windows,” he emphasises. “It is true you have to keep painting timber to keep it in good condition but they are easy to maintain, unlike other materials which, if damaged, need to be replaced.”

Howarth Doors and Windows is also continuing to adapt its products. “We are just about to launch our new brochure, which will include our new product, an aluminium faced window - the first we have ever produced. Using the aluminium extends the period of the maintenance interval of the window on the exterior surface, while at the same time retaining the feel and look of the timber on the inside.”

Summing up, Shearer concludes that the company’s main strength lies in its ability to provide something for everyone: “One of our key competitive advantages is that very few companies offer as broad a product range as we do. Our brochure runs to 140 pages full of product varieties, which gives our customers a huge range to choose from.”