Aftershocks from the worst economic meltdown in 80 years continue to reverberate around the hvac industry. Mark Larden, md of Geberit, explains the implications as he sees them to Ian Vallely
One of the biggest challenges facing the building services sector is how to handle the painfully slow recovery from a crippling downturn that began in 2008. This has been exacerbated more recently by upheaval in European economies, a shock downgrade in the US's credit rating and turmoil on the world's stock markets. There is even talk of the dreaded double-dip recession.

'Clearly,' says Mark Larden, managing director of sanitary systems manufacturer Geberit, 'the recession has changed the competitive nature of the building services industry and I believe it will continue to have a significant impact over the next four or five years at least.

'Although the sector will doubtless recover, it is going to be coming back from a low base and the recovery is likely to be gradual.'

In the meantime, the country's precarious financial state will, Mr Larden believes, sort the wheat from the chaff: 'We are finding that it really is survival of the fittest. Obviously, the contractors that look after their business sensibly are the ones that are going to survive.'

And sensible business practice means quoting for jobs judiciously, avoiding the temptation to trade sub-economically in order to sustain cash flow.

Difficult to cope

Mr Larden again: 'Companies are likely to go bust if they are too short-sighted with their quotations, effectively building buildings for no money.

'I think they are also finding it difficult to cope with the increase in raw materials prices. They make a quote and where, sensibly, this might be valid for two to three months before they re-quote, I think there is pressure on them to accept the order at the original price, even months later when raw materials prices have risen.

'Raw materials prices are notoriously volatile - copper pipes, for example, can rocket in price by 15-20 per cent in a month.'

Mr Larden has a particular interest in piping and its connections - among other products, his company manufactures supply systems comprising Geberit Mapress and Mepla pressfitting pipes, fittings and tooling. The Geberit Mapress range is available in stainless steel, carbon steel, copper and CuNiFe and Geberit Mepla pipe is made from a composite of metal and plastic.

Press connection technology is, he says, easy to use, fast to install and a safer alternative to conventional connection methods such as soldering or welding: 'Just cut, deburr and press connections together.'

However, Mr Larden points out: 'When times are hard, the danger is that people stop using innovative new working methods and withdraw to what they feel comfortable with. The natural instinct in tough trading conditions is to batten down the hatches and return to a conservative way of working.'

That is a big test for his company, but he says adding value is crucial and claims the products he supplies do precisely this: 'Soldering copper is still 70 per cent of the market so our challenge is to educate the market into a new way of thinking.

Building on strengths

'Progressive companies build on their strengths and add value to differentiate themselves rather than just following the pack. It's all about looking forward and trying out products like ours that save time, effort and money.'

But doesn't the lower effort required to use pressfittings erode the skills of installers? Not at all says Mr Larden. Indeed, he goes further, insisting that his company is firmly committed to the promotion of skills: 'For proof, look no further than the skills tournament we are organising.'

The Geberit Challenge due to take place in Glasgow, Birmingham and London this November will offer installers the chance to test their skills and win a trip to Dubai. Competitors will be pitched against one another and tested on their theoretical expertise plus their skill and speed at creating a clean and compliant installation system.

Among the tasks are a quiz on knowledge of sanitary technology, installation exercises, a creativity and skills test and a surprise task. For more information, visit www.geberit.co.uk/challenge or call 0800 077 8365.

The lowdown on Geberit

Geberit has a long and eventful history. Among the highlights are:

· 1874 - Caspar Melchior Albert Gebert opens his first plumbing business in Rapperswil, Switzerland.

· 1909 - After the death of their father, sons Albert Emil and Leo (the inventor of the valve-based toilet flushing mechanism) take over management of the company. Before long, the brothers begin to draw up plans for the construction of their own manufacturing factory so that all their production sites and workshops, which are scattered in various locations around Rapperswil are under one roof.

· 1917 - Construction is started of a new production plant.

· 1921 - The new building is completed and production units and workshops are transferred to the new premises.

· 1924 - Additional land is purchased in the Falkenstrasse to enlarge the production site.

· 1929 - Albert Emil opens the company's first foreign office - a retail depot in Paris.

· 1935 - Work begins in the area of plastic processing, at this time a very new technique used to produce corrosion-resistant cistern components and pipes.

· 1953 - Geberit is registered as a trademark and the name is used from this time on as brand name and quality label for all Geberit products. The third generation of the founding family, Heinrich and Klaus, both sons of Albert Emil, takes over management of the company.

· 1955 - A subsidiary, Geberit GmbH, is established in the Southern German town of Pfullendorf.

· 1959 - The Geberit Sàrl sales company is established in Paris.

· 1962/64 - Geberit expands further and moves into new premises in the Jona industrial park, not far from Rapperswil.

· 1965 - Geberit Company established in Vienna.

· 1967 - The new factory in Pfullendorf opens.

· 1973 - Geberit B.V. is established in Amsterdam.

· 1976 - With the establishment of the subsidiary Geberit Manufacturing Inc. in Michigan City, Indiana, USA, Geberit embarks on its overseas expansion. Geberit's corporate structure is reorganised and Geberit Holding SA established.

· 1983 - Geberit A/A is established in Lystrup, Denmark.

· 1984 - Information centre opened for the Italian market in Manno, Ticino.

· 1985 - The company acquires Weilheim, German-based Sanbloc GmbH, which manufactures installation elements.

· 1989/90 - A new information centre is built in Pfullendorf and a new plant is constructed in Pottenbrunn.

· 1992 - Geberit Lichtenstein GmbH in Lichtenstein, Germany is founded. It produces Geberit installation systems (GIS) and frames.

· 1994 - Geberit expands into China and sets up two joint ventures with two production sites.

· 1995 - The company acquires Deriplast S.p.A, a plastic pipe manufacturer in Villadose, Italy.

· 1999 - Geberit acquires a British piping company based in Aylesford. In the 125th year of its existence, the company goes public.

· 2002 - Geberit acquires an interest in the Austrian company Huter Vorfertigung GmbH. It also expands in the USA and acquires all shares of the Chicago Faucet Company headquartered in Des Plaines, Illinois. And it acquires WC Technology Corporation in Farmington Hills, Michigan.

· 2003 - The company acquires Mapress Holding GmbH in Langenfeld, Germany.

· 2009 - Geberit in the UK starts operating out of a purpose built two-storey, 12,000 sq ft building in Warwick representing an investment of more than a £2 million. The ground floor is dedicated to training with a showroom, practical area and seminar rooms. The first floor includes the main office for 28 people, a second showroom and the viewing area for the 'hydraulic tower', a 7m by 7m rig offering a practical demonstration of good and bad plumbing and drainage practice.