Over the last several years, the window replacement industry has been going through significant change, driven by lots of consolidation. As larger companies acquire competitors (both large and small), the market is shifting, with pros and cons for business and end consumers.
There are several factors contributing to consolidation, including, but not limited to: increased competition, rising material costs, the need to be more efficient and private equity firms becoming more involved in the industry.
With all of this, many times we can see innovation and entrepreneurship lag, with the goal of streamlining operations. When I say streamlining, I mean less options available, more common products and less risk taking and innovation. I am sure there are different opinions on this, but from my seat this is what I am seeing (doesn’t make anyone right or wrong).
As a plus, with consolidation, the manufacturing process will become better, more efficient and more consistent, because everything is more ‘common core’ in terms of products. In other words, more of the same products are manufactured in different facilities around the country. This can lead to lower prices, improved customer service and larger capital investments on the manufacturing end of things.
In addition, there are also many independent window manufacturers—some small, some large—that are still solely, or family owned. From talking with many of them, they place great importance on knowing their customers intimately, taking great care of them, giving them excellent service and delivery times, and new innovative products, as well as having a wide variety of options available. The independent window manufacturers always find a way to take care of special customer requests.
I believe the trend of consolidation is not going away. Manufacturers and the entire distribution chain will need to be nimble, able to evolve, and also continue building and maintaining customer relationships. This may require having strategic partnerships, special exclusive options, and even exclusive relationships.
Finally, I am not sure if consolidation will ultimately be good or bad for our industry, the dealer and distributor market, and end consumers. It is just too early to tell. But something I do know is our industry has always continued to evolve, to be innovative and stand out. Regardless of consolidation, my strong belief and years of experience tell me our industry’s innovation will always continue to be the ‘norm.’
Great selling!
Ty