Labour’s first Budget – a mixed bag for Windows, Doors, and Glazing industry
The first Budget presented by the Labour government in years brings a complex set of challenges and opportunities for the UK’s windows, doors, and glazing industry, comments Greg Beachim, Sales Manager – First Degree Systems, Cyncly. With significant hikes in the National Living Wage and employer National Insurance contributions (NI), fabricators, installers, and suppliers alike will be feeling the heat. Meanwhile, an investment of £5 billion towards new homes does bring potential promise for business, but it’s one that comes with strings attached.
Rising costs and the squeeze on margins
The Chancellor’s move to raise the National Living Wage by 7% and increase NI contributions has significant implications for the industry, particularly for fabricators, where margins are typically razor-thin. By decreasing the NI threshold, even smaller businesses that may have previously avoided this burden are now swept into the fold. This hike isn’t merely a “stealth tax”; it’s a substantial financial strain that will challenge businesses to adapt or falter.
For fabricators, these added costs can mean a choice between further squeezing already tight margins or making more difficult business decisions to preserve profitability. Employers will need to ensure every pound spent on wages and contributions brings maximum value. Here, leaner operations and the right technology could make a world of difference.
Efficiency becomes essential
The reality is that businesses can no longer afford any form of operational wastage. Every employee needs to be a crucial asset, delivering value that justifies the increased expense. This is where efficiency-focused solutions and meticulous workforce planning come in. To withstand the pressures on profitability, companies need to double down on maximising productivity per employee and optimising workflow to ensure that any spend on wages or training yields strong returns.
Adopting efficient software and tools, such as Cyncly’s Window Designer subscription option called Cloud Retailer can provide an edge here. With its pay-as-you-go model, Cloud Retailer enables companies to streamline operations without committing to the fixed costs associated with full-time staffing. The simple cloud-based plug-in allows your customer to produce their own quotations and send jobs directly to the fabricator without the need of additional costly or problematic re-processing. Speeding up and simplifying the whole quotation, order and processing of goods for manufacturer is critical in the day to day requirement of a fabricator. When used effectively, this kind of software can allow a leaner team to deliver the same level of service as a larger workforce, without the additional headache of permanent salaries, onboarding, and retention.
A bright spot: £5 billion investment in housing
While the cost pressures are undeniable, the Chancellor’s pledge of £5 billion to build 1.5 million homes is a positive sign. The scale of this commitment suggests a steady flow of work for the windows, doors, and glazing sector, presenting an opportunity for companies to tap into a robust pipeline of projects. However, this boon will only be accessible to companies that can overcome the challenges of rising costs and make themselves an indispensable partner in this expansive build.
Moreover, training skilled workers to meet this demand will be crucial. Investing in developing employees’ expertise through on-the-job training and certifications will not only improve quality but also reduce costly errors and delays. Enhanced skill levels can help companies stay competitive, as the most qualified and capable teams will be in high demand.
Training and tech: a strategic approach
In this environment, investing in training and digital tools isn’t just prudent – it’s essential. Training keeps employees’ skills relevant, ensuring that businesses maintain a high level of expertise even as economic pressures rise. As workers are upskilled, they can handle tasks more efficiently and to a higher standard, further protecting the company’s bottom line.
Using software to support, not replace, skilled labour is a savvy move. Solutions like Window Designer offer businesses the flexibility to scale their operations based on demand without the long-term commitments associated with staffing. By incorporating this technology, companies can cater to more clients at the same or even reduced labour costs. Additionally, the Cloud Retailer add on has cloud-based functionality ensuring that employees can work and communicate efficiently, reducing bottlenecks and wasted time – exactly what businesses need when every penny counts.
Building resilience in a changing market
In a time of rising expenses, tighter profit margins, and evolving labour regulations with the pending Workers Rights Bill, the windows, doors, and glazing industry faces a challenging landscape. However, for businesses willing to adapt, opportunities remain. From making use of efficient software to investing in a highly skilled and versatile workforce, companies can position themselves to not only withstand these changes but potentially even capitalise on them.
This budget may be a warning to some but an invitation to others – an invitation to rethink how we do business, focus on operational efficiency, and cultivate a resilient workforce. With the right strategies, the industry can continue to thrive despite the challenges, bringing new projects to life and providing the high-quality, efficient service the market demands.
The industry’s long-term resilience will depend on how effectively we can integrate innovations and efficiencies, build valuable partnerships, and ultimately, deliver top-quality service at competitive rates.
