HEATING & PLUMBING
STELRAD SEES GROWTH IN DIFFICULT MARKET
Brexit uncertainties not withstanding, radiator manufacturer Stelrad is gearing up to continue growth over the next year, as Fiona Russell Horne finds out.
I
t’s been a funny 12 months in the radiator market,” says Chris Harvey, head of marketing for radiator manufacturer Stelrad. “And be honest it’s been an even funnier last three months. We’ve had Brexit uncertainty of course, there has been a bit or turmoil in the market due to the unfortunate administration of one of our competitors. Obviously that means new opportunities for us, although it’s very sad for those affected.” Harvey says that the market has opened up, with some of Stelrad’s overseas competitors being a lot more active in the marketplace. “From our point of view we are in a very safe position,” he says. Stelrad took the deci- sion not to reduce stocks, instead keeping them up at high levels which has meant the company has been able to react quickly to changes in demand. “We have between 300,000 and 400,000 radiators in stock at any one time,that ensures we are able to meet orders within 72 hours in all but the smallest number of
orders.This is to give us and our customers the reassurance that we will be able to service their needs.”
Up until June 2019, the market was down 7% year on year from the same month in 2018, Harvey reports. Steel panel radiator sales
were down 8%, and this, he says, has a lot to do with Brexit uncertainty, though it has affected the commercial market more than the one-off sector. LST radiator sales were down 1%, towel rail sales were down 15%, but decorative radiator sales were up 21%. Year on year, Stelrad’s market share rose 2.5% at 50% for all radiators, rising to 58% in June. Of this, the company’s share of the steel panels sector rose 11% year on year, giving Stelrad 62% of sales and a 74% share of the LST market in June
“What we have is a reducing market currently,” he says, “which we see picking up before the end of the year as new build starts increase across the UK. Brexit is having an effect in the HVAC sector across the board and the radiator marketplace cannot escape the uncertainties that it brings, but whilst it seems to be having a specific effect on the social housing marketplace, the replacement radiators market is still buoyant and go-ing well for us as a business. So, we would read into that that most people are staying put and not moving house in the current climate, which you can understand.”
In the past year the company has pushed ahead with all of its planned initiatives, Har-
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www.buildersmerchantsjournal.net November 2019
vey continues. “Twelve months down the line we are beginning to see all of them beginning to deliver. We launched our installer loyalty programme and after an admittedly slow start, we have seen sign up’s increasing month on month. We have continued to invest in our Brand Specialists team with our key ‘face to face’ team members out in the merchants, providing training and support for merchant staff and meeting installers face to face through breakfast meetings and general visits. It’s a back to basics
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