21.04.2010 | 12:59

    

In the market of plastic windows there was deflation in 2009. As a result, the prices of PVC windows decreased averagely by 10%. However, in 2010 this tendency may be changed. The causes are increase in the cost of surrounds and raw materials for windows, as well as various factors influencing the restoration of consumer demand. 
2009 was a real trial for participants of fine windows and surrounds market and the worst year in all the history of the market.
Because of global financial crisis and sudden degradation of macroeconomic indicators in Russia purchasing power of the population dramatically reduced in 2009. According to the data of О.К.N.А. Маrketing and ОКNА МЕDIА portal, the market of plastic windows decreased by 33%. Consumers were afraid to buy and began to actively save their money «for a rainy day». Psychological factors, related to crisis, and unemployment, amounting to 14% of working population (in critical periods), as well as high credit burdens of 25% of population, - all this had a negative impact on purchasing power. Also, in 2009 there were severely toughened requirements to borrowers, and they actually stopped to issue credits to physical bodies because of economic instability and too high risks. 
Because of severely reduced demand for plastic windows, for 1,5 years the companies have worked with extremely low efficiency, and that was added by advance in prices for raw materials due to their deficiency. For 2009 the cost of window PVC profile decreased averagely by 5% and the cost of primary raw materials for PVC-S increased by 25%.
However, if in 2009 the companies couldn’t raise prices because of highly degraded demand, then in 2010 it would be possible. Delayed demand for windows in 2009 and the need for new windows (as it stands now, new energy-saving windows are installed in at most 30% of residential and office buildings in Russia) will result in better consumer demand for windows in 2010.
In January and February of 2010 there was a slump in window sales, owing to the longest and the coldest winter in the last 30 years (data of Gidrometeocenter). In that period installation of plastic windows was almost paralyzed. In March of 2010 there was a sharp increase in demand for plastic windows, against the background of warming and improvement of macroeconomic indicators. Consumers, scared by cold winter and draughty windows, started to actively replace windows. Because 2009 was a year of savings, now you could use saved money to install plastic windows. 
The results of January survey of VCIOM confirm that 12% of working population is going to install new windows in their dwellings, which is the second-priority purchase of Russian people in 2010.
Also, the energy efficiency law adopted in December of 2009 begins to affect the improvement of demand for plastic windows: active installation of heating meters, programs for enhancement of energy efficiency in educational establishments and other actions. Consumers have already begun to consider installation of new energy-saving windows in order to save heating costs in future. As the earlier you install new windows, the cheaper they will be. According to the law, all apartments must be equipped with resource meters before 2012, which in its turn will lead to high increase in demand for energy-saving windows.
It should be noted that already now the cost of certain surrounds increased, and soon you may await for advance in prices of window PVC profile, which is evidenced by many manufacturers. Consequently, the cost of plastic windows may be raised by 15-20% in 2010.