Luminatriums Go Public

Luminatriums? They are conservatories, but not as we know them... Continuing the theme, space is indeed the final frontier for many public sector landlords; largely how to add more without breaking the bank. But just as conservatories have become the means to add bright, attractive space inexpensively for many private homeowners, then so too do glass-based structures offer similar benefits for many commercial landlords and public sector property managers.

So what, you may ask, is a Luminatrium? The term is used by Sash UK Ltd, one of the country's leading window, door and conservatory manufacturers, to identify a type of large glass structure that the company has been instrumental in developing over the past 15 years. It may have a conservatory-style appearance and indeed, it can use many conservatory components. But a Luminatrium is based upon advanced engineering calculations and structural techniques that have little to do with the structures installed in thousands of homes throughout the UK. Coupled with often complex contractual and regulatory issues, the planning, design, engineering, manufacture and installation of Luminatriums are way beyond all but a handful of operators, with Sash UK the clear market leader.

Luminatriums are installed increasingly in hotels, restaurants and pubs to offer bright, airy and attractive space for customers as a matter of choice; the fact that they are often considerably cheaper and faster to install than other conventionally built structures is often a bonus, rather than the reason for the choice in the first place.

Sash UK is certainly the UK market leader in the design, manufacture and installation of Luminatriums, and in fact is a world authority, having been a leading supplier and installer of such structures for several years now in the United States, where there is an extraordinary demand for these structures which inevitably feature large unsupported roof spans, a large part of their appeal. Many are emphatically styled with an 'English' flavour and have become upmarket-desirable, an essential addition to many luxurious American homes. The largest Sash UK has installed is 3,300 feet².

In the UK there has been an increase in the number of public sector landlords, including those responsible for health and education estates, to utilise Luminatrium building techniques to improve and extend properties in their care. These have been applied for a wide range of uses ranging from simple extensions for use as lounges and dining areas for residential homes, and reception and registration areas for clinics, hospitals and colleges. The ability of the Luminatrium system to offer large unsupported roof spans has also allowed the conversion of under utilised outdoor quadrangle areas in schools to provide attractive and light internal areas for a wide range of uses. Insulation and building standards comply or exceed all current and anticipated regulations and indeed, may be varied easily according to the specifier’s wishes, including solar control which should rank highly in any glass structure, whilst safety is covered emphatically in the Building Regulations. A range of glasses may be chosen, including the latest self-cleaning products for reduced maintenance. Every Sash Luminatrium is factory-built and pre-assembled.

The key to the structure is a system of specially designed and manufactured hollow sections of architectural grade aluminium which has been specially developed for its lightness but superb structural strength and integrity, and which is easy to handle and install. The structural 'skeleton' is clad with conventional conservatory components, which rely on the Luminatrium system for support. The frame can be used with virtually any system in any material, and Sash has ties developed with a number of UK suppliers to ensure total compatibility with most products. The key to a Luminatrium is, however, its versatility, allowing enormous freedom in design both for aesthetics, and to provide solutions for complex building problems. There is no standardisation: every Luminatrium is surveyed, designed, manufactured and installed to order. However, the pre-fabricated construction allows installation periods of days rather than weeks for conventional building techniques.

Luminatriums have now been proven sufficiently in public sector applications and, if there is anything against them it may be that such structures may appear a little too ostentatious, something that is quickly redressed by the figures. Perhaps more estates managers should 'boldly go' along the Luminatrium route...

Sash UK Freezes Prices Until January 2008

Sash UK is starting as it means to go on by announcing plans to hold prices until January 2008, in an attempt to stabilise the market and provide security for its customers. In an industry that has suffered as a result of several unexpected rises in the price of oil, this has been no mean feat and it is all thanks to the Sash management team who have improved factory efficiencies. The price freeze has been achieved through speed, efficiency and volume. By investing in state-of-the-art machinery, Sash has been able to make its manufacturing processes more efficient, increasing the volume of production, hence reducing the cost per unit. "We anticipate that in the New Year most manufacturers will either have to increase prices or decrease quality. Not many will be able to achieve what we have at Sash," said David Ruzicka, Joint Managing Director. "We are confident of having a tremendous 2007 and believe that, providing there are no exceptional circumstances, we can hold our current prices as a firm commitment to all our customers for the rest of the year," he added. The instability of prices in 2006 has seen the collapse of many a small business. Installers have been forced to defect from their usual supplier and settle for lower priced, inferior products in order to survive. But by remaining true to its time-tested ethos, 'to provide the industry's highest standard of products and service at a price that is both sensible and realistic', Sash continues to challenge accepted industry trends without compromising on quality or resorting to screwing down their suppliers. "The price freeze is our statement to the industry and our customers of our commitment to renewing confidence and stability for the year to come," David added.

Anniversary Waltz

As Sash UK passes its 40th year joint MD Dave Ruzicka reflects on the 20 year relationship with the company’s principle supplier and concludes it is possible to maintain effective long term supplier/customer partnerships. During the mid Eighties the directors and staff at Sash UK Ltd used to sit in their offices in the Yorkshire mining town of Grimethorpe and watch the miners and police battle it out in what were some of the worst scenes of violence to characterise one of the sorriest periods in modern English history. Grimethorpe has also enjoyed the dubious accolade of being one of the most long-term deprived communities in Britain; in 1994, the European Union's study of deprivation named Grimethorpe as the poorest village in the country and amongst the poorest in Europe. Today whilst the High Street still bears the scars of years of closure and neglect a tour of the area reveals acre after acre of new development. Huge purpose and spec' built industrial buildings now pepper the landscape and even the giant slagheaps are being reclaimed. The noise of heavy earth-moving equipment provides the aural backdrop as the area is gripped by a rash of development after so many years of the surrounding land lying fallow. Much of that noise is generated by the groundworks preparation of a new manufacturing facility for Sash UK Ltd, consistently one of the UK's sharpest window, door and conservatory manufacturers and installers, but more importantly for Grimethorpe, one of the town’s longest established and most loyal employers. With more than 20% of its staff drawn from Grimethorpe more jobs will be generated by the new factory which, in its emerald-green livery will be far more valuable to the local community than any mere gemstone. The addition will allow Sash to expand its frame production still further whilst also reintroducing the luminatrium division back alongside the company's other divisions, and providing room for expansion for the burgeoning Fitrite decking & fencing initiative. Remarkably the 160,000 feet² (14,864 metres²) factory addition is being built just five years after its highly impressive, state-of-the-frame-makers-art present facility was opened, the honour going to the founder of its principle supplier, Heinrich Laumann of VEKA AG. Dave Ruzicka has long been the public face of Sash, now holding the reins of the business with Stephen Morrell with the talents evenly divided between Ruzicka's penchant for the deal, and Morrell’s for the detail. With Sash heading for sales of £27 million in the current period a 3 year plan to extend this to as much as £38 million does not seem too ambitious, given the evidence. Part of this growth plan is encased in a commitment to VEKA to increase Sash’s £3 million per annum spend with the company by a minimum of 10% each of the next three years. "VEKA has been our partner for more than 20 years," explains Ruzicka, "and much of our development as a company parallels VEKA's in the UK in that time. The word 'unique' is overused but in this case it is appropriate for the relationship between us: we are the only VEKA customer that has strong ties with the UK and US divisions of the company, manufacturing windows, doors, conservatories, luminatrium, and decking and fencing through our Fitrite brand. We also have a joint venture company in the 'States to supply luminatriums there, with some very impressive projects under our belts already." With Sash adding a suite from Spectus earlier this year there was speculation about the relationship, but Ruzicka is quick to stamp on any negative assumptions: "Apart from the fact that our trading relationship is cast in stone - quite literally in the monument outside Sash HQ reception that commemorates Herr Laumann's visit - we continue to work very closely with VEKA – they are core to our development. VEKA is one of the most widely specified systems in the commercial and public sectors, in which we are very successful and dependent upon for much of our projected growth. VEKA continues to be the choice of our customers who have created important niches for themselves to supply a premium home improvement product. "Our decision to take on another profile was purely pragmatic – it answered our needs to get into other markets and niches without compromising or affecting the markets we serve with VEKA products. But our service levels depend upon those provided by our suppliers and in that respect we must have world-class standards to meet the quality that our customers have come to take for granted from us. Few, if any other systems suppliers can offer anywhere near the resources that VEKA and Spectus provide; that is a key part of our offer – the reliance upon and dependability of our principle suppliers." The large and highly visible end panel of Sash's almost luminescent Grimethorpe factory carries evidence of just how the company has changed in recent years to face the increasingly amorphous nature of what used to simply be the 'double glazing' market. Whilst the manufacture of windows, doors and conservatories remains the company’s core output, commercial replacement is a close second. The newer but arguably more intriguing Luminatrium division has shown spectacular growth but is the more impressive for earning its spurs – almost literally – in the USA where some of the most extraordinary structures have been commissioned often by wealthy home owners to install structures of more than 3,000 feet² (279 metres²). The most adventurous departure from the core business is the Fitrite decking & fencing division which follows the principles of lateral diversification being pursued with mixed success by the big retail home improvers. For Sash this has been a remarkable exercise: whilst the product line has been embraced by hard-pressed installers seeking an extra string to their sagging bows, the professionalism and resource with which the company developed, launched and is now marketing the brand is impressive and shows just how far the company has travelled in its 40 years existence, but especially the last decade. Increasing sales are now paying dividends. Nonetheless Sash remains aware of its roots, both geographically and commercially: the company's commitment to Grimethorpe should, some may argue, persuade the locals to rename the town Sashthorpe or such, whilst the company understands, very clearly, that windows, doors and conservatories remain the bastion of its product offer.

Take Your Partners

Partnering has revolutionised the way that construction projects are managed, with particular success in the public sector. But, says Brian Oxley*, there are cracks appearing... Local government has made significant advances in procuring and delivering construction projects since the principles set out in Sir John Egan's landmark report, 'Rethinking Construction', have been successfully employed in hundreds of projects throughout Britain.

Partnering has become a way of life for many local authorities and their contractors, bringing with it an extraordinary harmony between client and supplier that would have brought much hilarity had it been suggested just a decade earlier. With the core principle of mutual trust, Partnering has literally changed the face of construction in this country.

Sash UK Ltd, as one of the UK's leading manufacturers and installers of windows and doors, has a long history of supply and fit in the social housing sector that precedes Egan by a couple of decades. It has operated successfully under the old way but was quick to realise the advantages offered by Partnering and thus, became an early pioneer of the concept, its first project carried out with Chester District Housing Trust in 2000. An impressive list of clients now includes many Housing Associations, Local Authorities and major construction companies forming a long list of who's who in the housing market. The company has played its own part in pioneering the concept, including a highly successful series of Partnering seminars in 2004 hosted by Sir Michael Latham that delivered the concept to an audience many of whom travelled long distances to attend.

As Commercial Director Brian Oxley has been instrumental in driving Sash UK sales to the social housing sector to £15 million annually, more than half of the company’s turnover. He is a staunch supporter of Partnering: "Even in contracts that are not actually formally based upon Partnering we have adopted the procedures and principles as our model. Overall Partnering has been very successful and we fully adopt it whenever we can as it brings efficiencies throughout the process for all sides. In full Partnering agreements there is real balance and you work together with your client as true partners. It has ensured that both sides understand just what the other wants – but perhaps more importantly needs - from the agreement, and the longer term nature of the agreement ensures that we get a good margin and that we and our clients can plan further ahead with confidence. It also allows us to develop far better relationships with our client whilst clear KPIs [Key Performance Indicators] ensure that complacency never creeps in. The systems work very well indeed."

However, Oxley says that cracks are appearing in the system as a result of local authority officers coming under increasing pressure to make further cuts, and suppliers who are wiling to resort to slashing prices to gain turnover at any cost: "Partnering relies on mutual trust and confidence but just as slashing the price on anything is the easiest way to sell, then so it is also the easiest way to buy. For the hard pressed buyer to say 'Hey, just look how much I saved on this job' in the short term he or she will look good. But when the contractor fails to deliver during an eighteen month contract to re-fit thousands of houses, that initial price quickly starts to look very poor value. There are plenty of examples around of this happening despite the fact that in recent years so many highly successful Partnering projects have proved their value." Even against a number of recent high profile contract failures, many local authority and housing association specifiers are drifting back to what amounts to competitive tendering, even if, says Oxley, the specifier believes they are acting true to the principles of Partnering. "Margins have reduced dramatically," he says. "This was something that Partnering was supposed to address by setting an acceptable margin in exchange for the additional commitment and planning by suppliers. Achieving profit for the contractor and savings for the client is acceptable to most RSLs [Registered Social Landlords] under Partnering. However the most a contractor could expect with direct tendering is a margin in the region of 5% with many desperate contractors even going in below cost, hoping to get something back under penalties. We are creeping back to those days and it is not a welcome trend."

Oxley believes that the British instinct for 'Price Price Price' is as much to blame for the trend back towards direct tendering as budgetary pressures; buyers simply enjoy the deal of achieving the lowest price: "What many specifiers forget is that the contract price is never the final price because the cheapest supplier/contractor will always try to claw something back to build on the inadequate margin. It is a very worrying trend."

In true Yorkshire style (Sash UK is located near Barnsley) Oxley believes firmly that "you get nowt for nowt" and something must always give: "There is a situation now in which a sort of 'hybrid' Partnering system has evolved with some local authorities and housing association specifiers. The benefits of detailed contract documentation, forward planning, strict KPIs and reporting are all required by the specifier, but at a direct tendering level, lowest price wins.

"We can compete against this when we want to because of our experience and efficiency. Our systems are well tried, we take ownership of a project and our factory is one of the most advanced in Britain. We get it right, first time, every time. But for less well-founded suppliers, every problem that occurs on a contract costs money and this is when the problems really creep in and contracts fail." Oxley's warning is stark: "Partnering in its truest form has been proven to work because it benefits all involved – the landlord, the contractor and most importantly, the tenants. It has been proven time and again that accepting the lowest price for the sake of it will inevitably bring additional and unwelcome costs and disruption. The system is in danger of being corrupted and no-one, surely, wants to go back to the cut-throat days of direct tendering – no-one benefits and, with the market more competitive than ever it's a recipe for disaster. Well run Partnering works for everyone – stay with it!"

*Brian Oxley is Commercial Director of Sash UK Ltd, responsible for Social Housing and New Build sectors for the company. He has been with Sash UK for more than 20 years, having previously worked for Wakefield Metropolitan District Council as a surveying and contracts manager.