The third quarter presented more unforeseen challenges for UK construction with as much uncertainty as any period over the past decade.

Political turmoil over the past few months have made trading conditions unfavourable and confidence in the markets and general public is at an all-time low. Homeowners are keeping their money in their pocket instead of investing in home improvements and repairs, particularly where their spending is discretionary.

Finances for local authorities and other public bodies are under threat and, for now, house builders continue to build. The sudden recent rise in interest rates stunned the market, but they are moderating, and Michael Gove’s commitment to 300,000 new homes a year encourages us to believe that the government is committed to increasing the housing stock. However, nothing changes the fact that there is a serious shortage of quality housing.

For the first half of 2022, Keylite Roof Windows saw a double digit increase in volume, offset by a slowdown during Q3, where volumes have been flat year on year.

The CPA is forecasting very little growth for 2023, mainly due to a slowdown in private housing and a fall in private housing RMI.

None of us have a crystal ball, however we believe, like most of the industry, that 2023 will start rather flat due to uncertainty, with a slight recovery through the year as confidence returns in the handling of the economy. By then, hopefully, the fear of spiralling energy bills will be behind us, inflation will have ‘normalised’ and personal finances be better understood.

We’ve invested in our manufacturing to allow us to flex production capacity more easily than previously. Near 20% increases in Poland’s minimum wage will have a significant impact on manufacturing costs, as will energy prices, but we have an established, skilled workforce that provides us with the output and quality that is required for markets like the UK.

Builders’ merchants and manufacturers have proven their agility over the past five years, to manage stock and the supply chain, moving with market demand to shield the industry from the worst of the pressures. 2023 will present even more challenges, but we have collectively proven our ability to ride these challenges and thrive.