Residential Windows and Doors: Inc Impact of COVID-19 - UK - July 2020

OVERVIEW
What you need to know
Key issues covered in this Report
Covered in this Report
COVID-19: Market context
Economic and other assumptions
EXECUTIVE SUMMARY
The market
Brexit impacted demand
Figure 1: The residential market for windows and doors, including conservatories, 2015-19
Two sectors showing different trends
Figure 2: Segmentation of residential window and door market, by application, 2015-19
Material differences
Figure 3: Material segmentation of window frames, 2019
Figure 4: Material segmentation for doors and door frames, 2019
Impact of COVID-19 on residential windows and doors
Figure 5: Expected impact of COVID-19 on residential windows and doors market, short, medium and long-term, 13 July 2020
2020 to be a difficult year
Figure 6: Forecast market for residential windows and doors compared with expectations prior to COVID-19, 2019-24
New build to lead recovery
Figure 7: Segmentation of forecast market for residential windows and doors, 2019-24
Companies and brands
An industry of two sectors
The national replacement operators
What we think
THE IMPACT OF COVID-19 ON RESIDENTIAL WINDOWS AND DOORS
The market
The new construction sector
The replacement sector
Companies and brands
Short-term casualties
Profile manufacturer issues
National suppliers
COVID-19: Market context
ISSUES AND INSIGHTS
How to gain more of the home improvement market
The facts
The implications
How important are green issues?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
The COVID-19 impact
Two markets showing different trends
The replacement sector facing competition
The recycling issue
MARKET SIZE
Brexit uncertainties affecting market before COVID-19
Figure 8: The residential market for windows and doors, including conservatories, 2015-19
MARKET SEGMENTATION – APPLICATION
New build buoyant, replacement market changing
Figure 9: Segmentation of residential window and door market, by application, 2015-19
MARKET SEGMENTATION – MATERIALS
The importance of environmental issues
Figure 10: Material segmentation of window frames, 2019
Figure 11: Material segmentation for doors and door frames, 2019
MARKET SEGMENTATION – BUILDERS AND CONTRACT
Boosted by new-build
Figure 12: Development of the builders and contract market for residential windows and doors, 2015-19
Figure 13: Product segmentation in the builders/contractors sector, 2015-19
Figure 14: Material and product segmentation in the builders/contractors sector, 2015-19 (£ million)
MARKET SEGMENTATION – DIRECT SELL
Introduction
The major market influences and COVID-19
The market development
Figure 15: Development of the direct sell market for residential windows and doors, 2015-19
Figure 16: Product segmentation in the direct sell sector, 2015-19
Figure 17: Material and product segmentation in the direct sell sector, 2015-19 (£ million)
MARKET FORECAST
COVID-19 further disrupts the market
Figure 18: Expected impact of COVID-19 on residential windows and doors market, short-, medium- and long-term, 13 July 2020
Major drop in demand before recovery
Figure 19: Forecast market for residential windows and doors compared with expectations prior to COVID-19, 2019-24
New build to lead recovery
Figure 20: Segmentation of forecast market for residential windows and doors, 2019-24
THE IMPACT OF THE ECONOMY
UK GDP
Figure 21: UK GDP growth rate, 2012-19
COVID-19 causing record fall in economy
Figure 22: Comparison of GDP expectations for 2020, 1 July 2020
Figure 23: Proportion of employees furloughed, by sector, 6-19 April 2020
Figure 24: Monthly index of GDP, January 1997-April 2020
Business investment and confidence suffering before Covid-19
Figure 25: UK business investment, £ million, Q1 2015 – Q1 2020
Figure 26: UK ICT investment, £ million, Q1 2015 – Q1 2020
Figure 27: ICAEW UK National Business ConfidenceTM index, Q1 2014 – Q1 2020
MARKET INFLUENCES
Home-moving versus improvement?
The double glazing role within home improvements
Figure 28: Market penetration of double glazing by tenure and house size in England, 2017 (%)
Figure 29: Proportion of homes in England fully double glazed, 2008-17
Housing stock – England
Figure 30: Trends in the housing stock in England, 1979-2019
Figure 31: Types of dwellings in the English housing stock, 2017
Figure 32: Age profile of dwellings in English housing stock, 2017
Housing stock – Wales
Figure 33: Trends in the housing stock in Wales, 2015-19
Housing stock – Scotland
Figure 34: Trends in the housing stock in Scotland, 2014-18
Housing stock – Northern Ireland
Figure 35: Types of dwellings in Northern Ireland, 2020 (000s)
MARKET DRIVERS
Overview
New house-building activity challenged with COVID-19
Figure 36: Segmentation of new housing construction output, 2015-19
Figure 37: Housing completions in England, by sector, 1946-2019
Number of households
Figure 38: Number of households in the UK, 1991-2019
Figure 39: Size of households, 2019
Home-ownership
Figure 40: Home-ownership, 2006-19
House prices
Figure 41: Annual UK house price changes, March 2019- March 2020
Housing transactions
Figure 42: Residential property transaction in the UK, by country, 2006-20 financial years (number)
Housing repair & maintenance expenditure
Figure 43: Housing repair and maintenance spending, by sector, 2015-19
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
COVID-19 has rapid impact
Margin pressure
The pricing danger
Strong market segmentation
INDUSTRY STRUCTURE
Introduction
Metal doors and frames
Figure 44: Development of the metal doors and window frames industry, 2015-19
PVCu doors and frames
Figure 45: Development of the PVCu doors and window frames industry, 2015-19
Timber doors and frames
Figure 46: Development of the timber doors and window Frames sector, 2015-19
COMPETITIVE STRATEGIES 
COVID-19 changes everything
Vertical integration
Horizontal integration
Different price offerings
Geographic concentration
Productivity and environmental emphasis
COMPANY PROFILES
Anglian Windows
Activity
Performance
Figure 47: Financial performance of Anglian Windows, 2015-19 (£ 000)
Strategy
Epwin Group
Activity
Performance
Figure 48: Financial performance of Epwin Group, 2015-19 (£m)
Strategy
Everest 2020
Activity
Performance
Figure 49: Financial performance of Everest 2014-18 (£m)
Strategy
JELD-WEN
Activity
Performance
Figure 50: Financial performance of JELD-WEN, 2014-18 (£ 000)
Strategy
REHAU
Activity
Performance
Figure 51: Financial performance of REHAU, 2014-18 (£ 000)
Strategy
Safestyle UK
Activity
Performance
Figure 52: Financial performance of Safestyle UK, 2015-19 (£m)
Strategy
VEKA
Activity
Performance
Figure 53: Financial development of VEKA, 2014-18 (£ 000)
Strategy
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Methodology