Inflation

[XTiffy]

I am in the process of building a new house. This house is one half (ie. detached) of a pair of semis I built twelve years ago (photo shows the half of the semis that the new build copies. The only changes were to put a hipped roof to match the other end.
I have all of the specs. and invoices from 2011. I have just been getting quotes for the eight timber windows, the best quote was £6,806 compared to £2304 (per semi), in 2011. I will leave you all to do the maths!
It would seem that some things have rocketed in price but others have dropped (secondhand woodworking machines and equipment?). Interesting to note that the original Yorkshire company, Howarth Windows packed in as did JeldWen. My new quote is also from Yorkshire. Anybody workout what is going on?

 

[Spectric]

You have answered both sides of your question, on one side inflation pushes the cost skywards and more people cannot afford to undertake renovations and work on their properties so companies like Howarth Windows go to the wall and then the market gets flooded by second hand machinery so that falls in price.

A good time if you have the cash, space and three phase to setup a really good workshop so long as it is not for your main source of income. Also a bad time for the suppliers who provide us with the more unique tools that we use for woodworking so they will be looking for all the support they can get otherwise we might lose them.

 

[niall Y]

I suppose that it is all relative, and there are many reasons for higher prices. I was once told by someone in the timber trade that worldwide timber prices are expressed in dollars. And any fall in the pound against the dollar then leads to higher timber prices.
The high energy price is definitely a big factor, especially in the manufacture of glass
This in some way, might explain the disparity in pricing from then till now.

I believe we are becoming poorer as a nation and inflation is the mechanism through which it happens. Without wanting to be a merchant of doom and gloom, I believe we are entering a state of managed decline, along with other western nations. Though looking on the brighter side - it did take Ancient Rome several hundred years to completely decline.

 

[XTiffy]

I know this rising cost of raw materials is often slated for rising costs but very recently Neslee said they had to put up prices due to rising raw material costs, then posted a 20% rise in profits. I believe this trend is true across the building industry. Energy and fuel companies have all posted record profits, when people are using their cars less, turning down heating etc.

 

[Linus]

I know this rising cost of raw materials is often slated for rising costs but very recently Neslee said they had to put up prices due to rising raw material costs, then posted a 20% rise in profits. I believe this trend is true across the building industry. Energy and fuel companies have all posted record profits, when people are using their cars less, turning down heating etc.

I wonder how many other companies are riding on the back of "inflation" to increase profits. As an example, my normal Co-op pricing for everyday items has increased beyond all bounds of credibility e.g.
Yoghurt x 4 was £1.50 now £2.75 83%
Heinz soup £0.75 now £1.95 160%
Toilet roll x 9 £4.50 now £8.35 86%

Am I a cynic or is someone profiteering?

 

[Jameshow]

I suppose that it is all relative, and there are many reasons for higher prices. I was once told by someone in the timber trade that worldwide timber prices are expressed in dollars. And any fall in the pound against the dollar then leads to higher timber prices.
The high energy price is definitely a big factor, especially in the manufacture of glass
This in some way, might explain the disparity in pricing from then till now.

I believe we are becoming poorer as a nation and inflation is the mechanism through which it happens. Without wanting to be a merchant of doom and gloom, I believe we are entering a state of managed decline, along with other western nations. Though looking on the brighter side - it did take Ancient Rome several hundred years to completely decline.

Definitely and more so than other European countries. Our manufacturing output is 1/4 of Germany and less than Italy.

We are a tourist/ immigration state where only our language / history / benign climate and generous benefits prop up a failing nation...

 

[Spectric]

it did take Ancient Rome several hundred years to completely decline.

But maybe we peaked with the Victorians, then sent all our skilled workforce to be slaughtered in the trenches and have been trying to rebuild ever since with varied success which has now be abruptly halted by the rise of the eastern economies.

 

[johnnyb]

with the greatest of respect the market is the market. because 12 years ago something was much cheaper doesn't mean the market will make exceptions for anybody. as a small maker pricing stuff always results in me losing out on labour. I have to try and double(+)my prices without anyone spitting a dummy. not simple. I'm so direct in the initial messages that 50% never get back.
falling revenue and rocketing bills will sink all but a tiny sliver. the concept that making a house full of windows just requires you to buy all the machinery and crack on belittles the skills and experience of joiners.

 

[Spectric]

But really nobody is a winner in how our economy works, something tells me that a select few might have a lot to gain at the expense of the majority.

I look at it as a race to nowhere because in simple terms prices go up and you get a payrise so the gap is not as wide but still wider than before. This repeats and everyone earns a bit more but spends a lot more and the gap just widens as more fall into hardship.

Inflation is an economy killer and will impact all our woodworking interest and desires to do work on our homes but we just have to adjust and do what we can because wages cannot keep pace with high inflation, maybe put the work on hold until things settle down but again a gamble. On the other hand it might drive you to do more of the work yourself and learn new skills but with this we all have limits, ie I can only plaster floors !

 

[deema]

Try shopping over the channel, they have very large dedicate workshops that produce jus5 one type of product. High quality and usually much lower prices than you can find in the UK.

 

[johnnyb]

try the wooden window company in Stoke. they basically took over a focus diy store and make windows and doors.

 

[johnnyb]

democracy has been losing to planned economies like China. the west are now totally reliant on China for making everything almost. this has been planned for many many years and the west has no control over it. capitalisms invisible hand will cut its own throat.

 

[Sean33]

I wonder how many other companies are riding on the back of "inflation" to increase profits. As an example, my normal Co-op pricing for everyday items has increased beyond all bounds of credibility e.g.
Yoghurt x 4 was £1.50 now £2.75 83%
Heinz soup £0.75 now £1.95 160%
Toilet roll x 9 £4.50 now £8.35 86%

Am I a cynic or is someone profiteering?

We are on holiday at the moment in Spain, her indoors likes super seedy bread, it’s about 20p cheaper here for a loaf of hovis than at home!
The answer I believe is yes there is a huge amount of profiteering going on, I believe the government have tried to intervene as all the major supermarkets said they would be bringing down prices of staples a month or so ago, I’ll believe it when I see it..
I haven’t looked for the last month or so but there has been a big correction lower in most major commodities so within time we should start to see that filter through, hopefully

 

[Phil Pascoe]

Toilet roll x 9 £4.50 now £8.35 86%

Am I a cynic or is someone profiteering?

Pre covid we were paying £13 for 72.

 

[XTiffy]

Seems like we have gone from the "Mars bar index" to the "bog roll index".

 

[niall Y]

Seems like we have gone from the "Mars bar index" to the "bog roll index".

And why not? They both can be easy victims of 'Shrinkflation'

 

[eribaMotters]

Brexit + Covid = INFLATION

Colin

 

[Spectric]

Without manufacturing you have nothing to trade, you cannot grow the economy out of thin air and we are at the mercy of global markets without anything to dampen the impact so inflation is only losely controled at best.

 

[niall Y]

Brexit + Covid = INFLATION

Colin

Brexit + Covid + Ukraine = INFLATION

Edit: Correction ........... Brexit + Covid + Ukraine + Lizz Truss = INFLATION

 

[Agent_zed]

The problem with wood is that it comes from trees and in the past few years large amounts of them have been on fire both in Europe/Russia and North america. My understanding is that the americans were buying up all the wood as they use it a lot more than we do. Add in the current Russia problem and inflation and it's not surprising your quote for wooden windows has gone up.

My feeling (hence i could be wrong) is that the younger generation (I'm not that old yet tbh although this sounds like it) isn't that interested in making/fixing things. I grew up fixing my cars and taking everything apart i could. I built a kit car at 25 but I've seen a decline in the kitcar community and less and less builders and less and less shows happening.

Having access to loads of cheap things for many years seems to have killed peoples desire to learn to do things themselves, or pay a lot for someone to do it for them. Why pay UK wage prices for a product when Amazon will deliver it tomorrow for 1/4 the price.

It's hard but I'm trying to buy more local and British if I can as I think companies like Amazon are the problem. Everyone used to take their little cut of the money and it went around, now people like Bezos takes almost all of it and destroys everything in his wake.