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Above left: Zest’s Eco Hive Composter taps into the home composting trend Above right: Power Sheds’ 6x6 shiplap corner summerhouse
was on reducing stock levels and managing their slow selling lines. The general economic issues and its impact on disposable income were also a factor, as was the very wet and unsettled weather during the season. “Having said that, the consumer demand for products that are made from sustainable materials, and which enhance a ‘natural environment’ is clearly coming through and Zest is committed to products which meet that need in an accessible and affordable way,” he added.
The simple fact is that many consumers completed their garden improvement projects during the lockdown periods and, as replacing a shed or laying a new deck is not something you do every year, there’s less of that happening.
“Our shed sales were down because everybody that wanted one had already bought one [in the previous year or two],” said Mr Twigg. “Some of these products then realign with the new housing market but there have been pressures on people moving house, which has narrowed that opportunity.” He added that as well as its own shed sales being impacted, sales of its cladding products to other shed manufacturers had also seen a dip.
“I guess it’s a sign of the times,” said Mr Twigg. “I remember speaking to a shed manufacturer during the pandemic and his lead times were four months, but when I spoke to him just before Christmas, he said he could turn something around in four days. His order book is vastly reduced and that has an impact all the way through the chain.” Bradford-based shed and garden building specialist Power Sheds, which is part of the BSW Group, notes that the industry did experience a return to normality in terms of seasonality, so in that sense its predictions for the year were spot on.
“However, beneath the surface, the landscape has been challenging,” said Jack Sutcliffe, director and co-founder. “The exponential growth of Covid led shed manufacturers to invest heavily in expanding their production capacities, resulting in an oversupply relative to the actual demand. In a bid to stay competitive and maintain operations, many companies engaged in a race to the bottom, drastically reducing prices. This intense competition has, unfortunately, squeezed profit margins for shed companies, making it a tough period for some manufacturers. Despite the anticipated seasonality, the industry has had to navigate a delicate balance between oversupply and reduced pricing, presenting a unique set of challenges that require strategic adaptation.” All that being said, of course, there was still business to be had and Power Sheds, for one, has pressed ahead with developments. After having “a great first year” with its log cabin range, in the last month it has picked up the keys to its new log cabin manufacturing facility. Also in Bradford, the 33,000ft2
facility is an important step
in enhancing the company’s production capabilities. “We’re also eagerly anticipating the delivery of our AMD log cabin notching machine in March/April, a significant investment that will play a crucial role in enabling us to widen our log cabin range, offering customers a broader and more versatile selection,” said Mr Sutcliffe. “We’ve already initiated testing by sending over a pack of machined logs to Belgium where the machine is being made,” he continued. “The machine’s capability to process and notch a log within six seconds is the big improvement from the current duration of over one minute per log. Not only does it significantly enhance speed, but it also
ensures precision and a superior finish to the machined logs. “We’re excited about the potential impact this expansion will have on our market presence and look forward to the opportunities it brings.”
Mr Sutcliffe added that as well as housing the notching machine, the new factory will also accommodate the development of other upcoming products.
He also reported that investments in machinery and in-house training to enhance operation efficiency had meant the company hadn’t needed to expand its manufacturing team as much as in previous years, when it has recruited heavily. “However, we’ve grown our office team to help manage the projects we have in our pipeline,” he said. “We are expanding into new markets, such as into Germany and the Republic of Ireland, and so have made additions to our finance team as launching in these regions involves fairly complicated (post Brexit!) financial planning to ensure compliance. “As the company explores overseas
markets, particularly the potential success in Germany, there’s a strategic consideration to establish production facilities closer to those markets,” said Mr Sutcliffe. “This means that, if successful, we may opt for manufacturing in mainland Europe rather than exporting from the UK.”
Zest said its steadily expanding range of outdoor entertaining products all performed “extremely well” last season, with its Pizza Oven Table and its triple award-winning Garden Bar and Two Stool Set doing particularly well with stockists. Perhaps reflecting the huge increase in internet shopping which began in the Covid years, the two new Zest parcel storage solutions – the Keep Safe Parcel Store and ►
www.ttjonline.com | March/April 2024 | TTJ
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