Keystone Comment: Q1 2024
As we enter 2024, we’re met with ongoing market fluctuations, reminiscent of the challenges we faced in the previous year. Despite the initial dip, there’s a growing sense of optimism and anticipation for improvements ahead. Discussions surrounding positivity and potential enhancements are on the rise, signalling a shift towards a more promising future. The latest ONS data for Q1 shows a marked increase in new construction orders (+15.9% quarter-on-quarter), buoyed by private commercial orders for offices, health, and entertainment premises, while GfK’s Consumer Confidence Index shows another 2-point increase in consumer confidence in April, following a positive March, and dramatically improved scores on the previous April.
Not to get carried away, Q1 2024 volumes have dropped a further 5% from the run rate in the second half of 2023, which was already more than 20% down on the first half of 2023. With the Election date now set, housing polices beyond the rhetoric need to deliver on behalf of the industry that is currently in limbo.
For us as a steel lintel manufacturer, the road to recovery is marked by a delay between consumer commitment and actual orders. While we eagerly await the surge in demand spurred by increased competition in lending, we understand that tangible results may take up to six months to materialise.
In the meantime, our Technical and Specification teams are fully engaged with the Future Homes Standard (FHS2025) consultation document, which presents significant changes in regulations. Collaborating closely with SAP assessors and House Builders, we’re assessing the impact of two proposed options on lintel specifications, build costs, and consumer running costs.
One notable aspect of the consultation document is the absence of upgrades to fabric standards from Part L, maintaining the focus on fabric energy efficiency. The transition from SAP to the Home Energy Model (HEM) introduces complexities that require sector-wide remodelling to meet the March 6th 2024 consultation deadline and the Future Home Standard implementation in 2025!
Despite the uncertainties, we’re committed to adapting and excelling in this evolving landscape. Our proactive approach ensures that we’re well-prepared to navigate the challenges and capitalise on the opportunities that lie ahead in 2024.
