NEWS | Round-up
VIEWPOINT The year of
resurgence? Tom Reynolds, CEO of the Bathroom Manufacturers Association, believes 2024 could be the year the KBB sector sees an uptick in consumer confidence
Lack of apprentice uptake a ‘tragedy’ says BiKBBI boss
THE KBB industry is failing in its direct support of apprentices, despite significant action by providers, says BiKBBI chief executive Damian Walters. Speaking in
his opening address at the
FOR THE UK’s kitchen and bathroom industry, the current economic climate casts a long shadow. 2023 marked a downturn, with bathroom manufacturers witnessing a 1.7% decline in sales compared to 2022. An increase in liquidations among retailers and plumber’s merchants, a detail not missed by the watchful eyes of the BMA monitoring the London Gazette, signals a lingering distress. Coupled with a UK economy forecasted to trudge below a 1% GDP growth in 2024, our industry’s situation seems grim. Yet, fear not, it’s not all gloom. Even cautious
forecasters predict a rise in GDP growth to near 2% in 2025. The repair, maintenance, and improvement (RMI) sector, often an unsung driver of the economy, will, in my view, bounce back sooner.
I should point out I’m at odds with some economists The
challenges are real, but so are the opportunities
here, with most predicting domestic RMI’s growth will be delayed until next year; I’m looking closely at consumer confidence. There’s a flicker of hope in the consumer sector: GfK’s consumer confidence index rose three points in January, its best score in two years, and the Major Purchase Index climbed three points. This uptick suggests a slow but steady revival in consumer sentiment. The KBB industry’s challenges
are multifaceted. The Red Sea shipping issue, while a hiccup, is not as paralysing as the post- pandemic
shipping crisis. Its
effects on lead times and costs are noticeable but manageable. The housing market, a key indicator for the industry, also shows resilience. PWC economists expect house prices to decline by just 2% in 2024, a lesser drop than anticipated, maintaining values significantly above pre-pandemic levels. This stability, coupled with the Bank of England’s target inflation rate nearing, suggests a possible easing of interest rates in the second half of the year, boding well for mortgage deals. 2024 is poised to be a pivotal year, potentially marked by events that could boost consumer confidence. The looming General Election presents an opportunity for political focus on the building and construction sector. Labour’s Keir Starmer has already emphasised this in his pitch, and the Conservatives are unlikely to want to be outdone, potentially leading to beneficial policies for the KBB industry.
In this landscape, the KBB sector must remain vigilant and adaptable. The challenges are real, but so are the opportunities. Businesses need to prepare for the upswing, keeping an eye on consumer trends, political developments, and global economic shifts. Retailers’ and manufacturers’ history of overcoming adversity, coupled with the slowly improving economic indicators, provides a solid foundation for optimism. The coming months could well mark a turning point, heralding a period of renewed growth and prosperity for our sector.
8
recent BiKBBI Conference in London, Walters (pictured) outlined the work done in establishing new dedicated apprenticeship schemes but said the initiatives “lacked industry uptake”. But, he said, less than 100 new apprentices have joined the industry. “[This] is an absolute tragedy, considering the skills gap calamity we find ourselves in as an industry,” he said. “Less than 100 new apprentices… is nothing short of a travesty. It’s not good enough and there’s no point in us pretending otherwise. “Our industry coming together and creating a
fit-for-purpose solution to our long-term skills gap challenge is the equivalent of us building a life raft for people stranded at sea, but no one is getting on board, because they’re too busy
taking selfies with circling sharks.” The BiKBBI has put a focus on bringing new blood into the industry and has established an Education Steering Committee in the last year. It has played a key role in delivering the Level 2 Fitted Furniture Installer Apprenticeship and a new standalone Apprenticeship Standard for Fitted Interiors.
This is the framework that, Walters said, is being underused.
“I know we’re all busy and businesses must prioritise their focus on a number of challenges, internally as well as externally, but we have a robust vehicle for futureproofing the problem and we’re not using it.
“I know the Government has much to do in supporting SMEs, in particular, to embrace apprenticeships, but we can’t
wait For more comment and
and we must come together and act now to avoid calamity.” •
opinion apprenticehips, see page 28. Quooker opens new Dublin HQ
BOILING WATER tap manufacturer Quooker has opened the doors to its new Irish headquarters in Dublin.
According to the brand, the new headquarters displays Quooker’s entire product portfolio, which includes its full collection of taps, tanks, finishes and accessories, as well as the new CUBE.
The new Dublin HQ also hosts a VIP virtual sales service, which the brand says “ensures the sales process is smooth and intuitive”.
According to Quooker,
the opening of its new headquarters represents the next step in the company’s rapid expansion. UK managing director Stephen Johnson said that Brexit has made it “exceptionally difficult” for UK companies to trade in Ireland, and the new site will help to facilitate trade in the country. He added: “Changing supply chain from EU nation to EU nation and removing the UK from that process makes the whole structure more
efficient for the wider business and even more so for our dealer partners.
“While the complexities of Brexit acted as a catalyst for the creation of our Irish office, this strategic move has been in the pipeline for some time. Growing at an impressive 120% per year, with over 10,000 installations forecast in Ireland alone, Irish sales contribute to a significant part of our business. With an evident appetite for Quooker in Ireland, Brexit aside, it is vital for us to consolidate our base there. The territory needs it.”
“It is important for us that we have local people trading to local consumers in their own country. We have developed an Irish-specific website,
Irish TV advertising and of course, our brand new Irish premises.
“Quooker Ireland has also created 10 new sales positions with further expansion anticipated through 2024.”
• March 2024 on forever,
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