With fairly anaemic growth predicted in the UK economy in 2025, interest rates predicted to come down only very slowly, and the government doubling down on its determination to restore the public finances through a raft of higher taxes, the overall outlook for next year looks pretty challenging.
But, for The Window Company (Contracts) and the window and door sector in general, I think there are still some valid reasons for optimism.
For instance, the government has committed to very ambitious housebuilding targets and restored the requirement for rental properties to have an EPC rating of at least C, and that is likely to drive investment in both the new build and replacement sectors.
The industry is also embracing AI in a way that defies our reputation for being slow to leverage the benefits of new technology. We are already seeing AI being used across our own supply chain to improve communication and make some processes leaner and more efficient, and we will certainly be embedding it more within our own business next year.
When it comes to the regulatory changes ahead in relation to the Building Regs, I’m pleased to see that the initial panic as to how the industry could comply has largely subsided and the serious work of pushing back to government and finding solutions, as I have seen with the GGF, appears to be well and truly underway.
And, while there has been a predictably negative response to the increase in employers’ NIC contributions, I think it should actually be used to drive improvements in efficiency in 2025. In a business like ours where we work on long term social housing contracts, prices and service levels are agreed well in advance, so raising prices or cutting staff is not an option. We will have no choice but to focus on reducing costs and finding new process efficiencies, and the culture of continuous improvement here is such that I have no doubt that we will deliver on both.
Ultimately, the installation of windows and doors will not come to a halt or become a loss making endeavour at The Window Company (Contracts) any time soon. My only hope, on a personal level in 2025, is that it doesn’t flash by quite as quickly as 2024 seems to have done. Despite the challenges ahead, I would like more time to enjoy it!
