As sure as the sun will rise in the morning, prices will rise. This goes for the price of milk, fuel, glass and YES… windows. There are several factors that affect the cost of Windows in the United Kingdom. Nowadays though, your local window company’s prices are influenced on a global scale.
Linked with the volatile demands of the construction industry, which are, in turn, obsequious to economic stress, window prices can fluctuate. As installers, we want to stabilise the price of windows so the consumer gets a fair and consistent quote.
Recently, windows installers like YES Glazing Solutions, have been put through multiple price rises by some of their suppliers. These rises are attributable to raw materials which is where the influence from global shores comes into play.
Political events have played a part in the price increases. The exchange rate between the Pound Sterling and the US Dollar and Euro currencies fell sharply after the 2016 UK Referendum – or Brexit. It tumbled 20% immediately after the referendum and recently hit a three decade low against the dollar (source: Reuters)
Many windows companies use US or European manufactured components in their products. These components now cost more to UK companies because of the Pound’s lower value.
When tracking the price of glass over a 20 year period, it shows a fall toward the end of the last millennium, but then a rise pretty much ever since. Zooming in on the last two years, it is possible to see how there was a definitive jump after Brexit.
Will prices fall again?
It’s been said that Europhile traders bitter about Britain’s snub of the EU might want to undermine a recovery for Sterling. Perhaps, but in spite of any ill intentions, there is a recovery forecast. One could certainly be on the cards with what is in store…
When the government triggers Article 50, Britain may gain an advantage in impending trade negotiations. Successful negotiations would strengthen the pound. Additionally, some European countries are facing their own elections that could have a destabilising effect on their economy. This would have far-reaching consequences for the value of the Euro, which would also help Sterling.
Should Sterling recover, then the components will be cheaper for suppliers once again. These cost savings can be passed on in turn to installers and ultimately to customers. Not convinced? Do you feel that rather like fuel on the forecourts, when the cost of a barrel of crude oil falls, the price at the pump takes a while to slip back down in unison!
Voting for a low price
Rest assured. YES Glazing Solutions want to provide the best price we can for the very best doors and windows products. So far we have had to swallow these price increases to stay competitive in the fenestration market.
We are banking on a recovery, but the currency markets could fall adversely again instead. Then we may see more price rises. In or out of Europe, the decisions made on a global scale affect us all. Prices, profit margins, the economy and ultimately the cost of windows all decided by the cast of a vote at the polling station. Power to the people. Who would have thought it?