The window and door industry has been through the wringer in recent years, rising material costs, squeezed consumer demand, and intensifying competition.
And now, with the new wage and National Insurance (NI) rules already in force, things have tightened again.
From April 2025, the National Living Wage increased to £12.21 for those aged 21 and over. That wasn’t just an uplift for entry-level staff, many businesses also needed to increase pay for other employees to maintain pay structures.
Add to that an increase in Employer NI to 15%, and a lower threshold before contributions kick in (£5,000 instead of £9,000), and you’re already seeing a sizeable rise in your wage bill.
So, what can you do to stay ahead?
1. Know the Real Impact
First things first, quantify the damage. If you haven’t already, run the numbers on your revised wage bill and NI contributions. Don’t guess. Understanding the full-year cost
impact gives you the clarity to plan.
2. Refresh Your Pricing Strategy
Margins are getting tighter and if your prices haven’t kept pace, you’ll already be feeling the pinch. Start by auditing your margins by product and customer type. Are you missing key costs in your mark-up? Think about trims, fuel, surveys, and even remakes.
If your margins are off, find out why and act now. Small, phased price rises can make a big difference, especially if you’ve not adjusted for a while. And consider adopting a dynamic pricing model where increases in labour or material costs trigger a review of your selling price.
3. Drive Manufacturing Efficiency
If you’re a fabricator or glass processor, the pressure is even greater. Larger workforces mean bigger exposure to wage and NI hikes. Now’s the time to double down on efficiency:
- Streamline workflows
- Invest in automation
- Cross-train your team
- Cut out costly remakes
Even modest gains across the factory floor can stack up quickly.
4. Tighten Up Purchasing
Materials remain a big cost driver. Are your suppliers still competitive? Are there better terms available?
Can you consolidate purchasing across sites to gain leverage? Every
saving helps.
5. Forecast, Don’t React
Cash flow will feel the strain. Build a 12-month rolling forecast that includes the
increased costs. That way, you can spot shortfalls in advance and take early action.
6. Know Your Numbers
This one’s big. Too many businesses in our sector are flying blind. Monthly accounts, clear KPIs, margin tracking, these aren’t just for big firms. They’re for anyone who wants to run a smart, stable, and profitable business.
At Clever Bean Accounting, we always say: great businesses are run by their numbers. If you’re not measuring performance, you’re guessing, and guesswork is expensive.
In Summary…
Rachel from Accounts has spoken and the news wasn’t good. If you want to protect
your margins, you need to act. Audit your numbers, tune up your pricing, cut waste, and take control of your costs.
If you need help to unlock the financial potential of your glazing business, get in touch with the Clever Bean Accounting team.
