With financial institutions warning of a slowdown in the economy the panel products industry could be about to lose its “feel-good factor”, according to Hal Eccles, marketing and media manager at Leeds-based Lawcris Panel Products.
He said the sector has enjoyed a renaissance in recent years, mainly due to the much improved quality of melamine-faced products and a buoyant house market.
“This can be seen in all areas of the industry, the residential market with kitchens and bedrooms, retail with shop refits and the bar industry, which is at the forefront of design trends,” he said.
But now factors such as the economy, the country’s growing debt burden and rising fuel costs are having a significant effect on the profits generated by commodity products.
Mr Eccles said: “With these products carrying such low margins, companies need to consider the profitability and look to raising revenue by increasing the sales of added value products. With markets getting tighter, companies with the greatest flexibility and the ability to adapt to change are in the strongest position to retain their market share and to explore new markets.”
Mr Eccles said the trend of manufacturers to turn towards distributors rather than direct supply bodes well for those who can offer a total package service. He added: “With financial hesitation in the economy, now is the time to invest, ensuring you can offer what the customer wants when they want it.
“Service will become paramount in an increasingly aggressive market place.
“The timber industry is waking up to a very different commerical market and companies need to think smarter – he who dares, wins.”
