The UK market for replacement domestic doors and windows is facing major challenges in 2008.  The market is large, but mature, and volumes are declining.  As companies compete for business in a strongly price oriented market, major problems have resulted in substantial restructuring in 2007, as the market adjusts and consolidates.

The market is also having to adapt to meet the requirements of legislation and the issue of sustainability, and a much wider and deeper awareness of the environmental, social and economic impact of all building works are also significant factors in this market.  These factors, combined with external factors such as changes in interest rates, the slowing house market and the impact of the ‘credit crunch’ which began to impact the market in the latter half of 2007, are combining to further pressurise this market and more rationalisation is expected. The impact of these issues can be clearly seen in the chart above.

In 2007, the private home improvement market for doors and windows has declined, with a high percentage of homes in the private sector now fitted with replacement windows.  The proportion of ‘replacements of replacements’ in this market has increased in recent years, but this has not made up for the decline overall.  The social housing sector has been buoyant in 2007 and in the recent past, with the government’s Decent Homes initiative driving refurbishment programmes. Our estimate of the total value of the replacement windows market in 2007 is around £1340m, at installed prices.   The total estimated value of the replacement market for patio doors was around £200m at installed prices in 2007, while the total installed value of the residential door market is estimated at around £880m.

PVCu is the dominant frame material, particularly in window applications, but market saturation has been reached with increasing competition from timber and aluminium. In addition, composites are a growing market in new build and public sector replacement markets, with the private replacement markeyt offering increasing opportunities for growth.

The overall prospects for the replacement doors and windows market for 2008 remain downbeat, with a forecast decline of around 3%, reflecting a combination of market saturation, continued pressure on prices throughout the supply chain and the impact of the current credit crunch.  In addition, the economy is set to slow down in 2008-09 and falling house prices are also likely to slow the market. In the medium term, some recovery may be achieved and the sector will offer growth prospects in some niche applications.

AMA Research’s “Replacement Doors and Windows Market UK 2008-2012” report is available in hard copy or electronic format for £625 and can be ordered online at www.amaresearch.co.uk or by calling 0871 3103450.