Contract Industry Analysis Talk WHAT'S IN STORE FOR '24? David Jennings, CEO at UAP, reflects on the factors that have shaped the business in 2023 and offers some positive predictions for what the future may hold... Across the world, businesses have faced economic turmoil. Rising inflation coupled with home improvement spikes during Covid have affected retail demand making trading conditions challenging. But our industry is a broad church. Although there are issues in some parts, there are opportunities for growth as well as upswings such as ecommerce, which has remained strong throughout 2023. Expansion and diversification In a challenging economic climate, we have continued to diversify the UAP group to de-risk any one core market. In 2023, this strategy enabled us to grow our overall business by more than 50%. Strategic acquisitions supercharged our expansion with Maher London and Security Hardware joining the UAP family. In the year ahead, both businesses are set for significant growth. Our diversification also saw us invest in a new business offering us two new income streams in <strong>2024</strong>. Armadillo Metal Coatings is developing a range of anti-bacterial hardware and will incorporate a specialist chemicals division. The launch of Fire Door Maintenance (FDM) adds another string to our bow and will be central to the UAP ecosystem. This specialist business offers fire door inspection and maintenance services as well as best-in-class training for the industry. Scaling up To improve efficiency and connectivity, we have moved from a multiple warehouse operation to a new headquarters in Dumers Lane, Bury. This 120,000ft 2 building brings all our departments under one roof, helping us to increase capacity while streamlining our processes. It will also become home to FDM’s new training facility. This unique offer will provide everyone from architects and facilities managers, through to locksmiths and fire departments, with the opportunity to learn in an impressive environment. Another benefit of our Dumers Lane site is David Jennings “If our industry was football’s Premier League, we want to make it to the top” that it can better accommodate our growing workforce. Our acquisitions, diversification and new headquarters will count for nothing without significant investment in our people. At all levels, we have added depth and strength to our teams. This includes the arrival of highly experienced and knowledgeable people from across the industry thanks to our targeted acquisition strategy. Continuous innovation Our passion for new product development has seen us launch award-winning products and is why our intellectual property portfolio has more than 60 patents. Through ongoing research, our focus is on creating products that meet market needs. The soft launch of the IONIC electronic lock at the FIT Show in May 2023 resulted in a wish list of extra features which have now been developed thanks to our intuitive haptic technology. In <strong>2024</strong>, we will also reveal our IONIC replacement handle, which we believe will rival every multipoint lock handle in the world. Aided by our intuitive haptic technology, the IONIC is an example of British engineering at its very best. Strengthening the supply chain The last few years have underlined the importance of a robust supply chain. That is why we have increased our supply chain team in China and India, and further strengthened our relationships with all suppliers. The massive stock holding capability at our new Dumers Lane site enables us to store extra stock in the UK too. We will also work with our suppliers to maximise economies of scale for every product we buy. Looking ahead Putting my neck on the line, my predictions are largely positive for <strong>2024</strong>. I think the Government will introduce core policies to help stimulate the economy and curry favour with the electorate. These will help build short and mid-term confidence in the markets. Inflation should stabilise and currency will stay around the midpoint rate. Shipping and metal costs will remain stable, so I don’t see any need for significant price increases in <strong>2024</strong>. The UK retail window market will increase slightly. As buyers’ confidence grows, so should the demand for new-build, aiding its recovery. Across the public sector, I believe there will be a renewed focus on capital projects, helping to boost the fire door market. At UAP, we will continue to seek new markets for our products while de-risking and building our teams across every department. If our industry was football’s Premier League, we want to make it to the top and secure a place in the UEFA Champions League. As we start the new year, this ambition will be front of mind as we keep scaling up and strengthening our business. Contact UAP: 0161 796 7268 uapcorporate.com 28 T I JANUARY <strong>2024</strong> PRACTICAL CONTENT FOR THE GLAZING INSTALLER & HOME IMPROVEMENT SPECIALIST
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