Blog
Significant changes are taking place in the heating industry throughout the UK. Since the mid 1970s British Gas started cutting back on the apprenticeships they offered and during the privatisation in 1986 they saw several experienced employees leave to set up their own heating businesses. For example, my dad and my two uncles all left British Gas to set up their own heating and plumbing businesses which we jokingly referred to as the Sharp East Coast cartel. The result was a sudden increase in the number of local, small heating businesses.
However, my belief as we move into the fourth major energy change the country has seen going from Coal to town gas to natural gas and now to the electrification of heat is that we will lose many of those independent, small businesses. While the likes of Warmer and Heat Geek are working to give those small businesses the tools they need to compete in this new marketplace, for many it will be an impossible challenge, competing with changing customer needs and demands and the competition from the national companies.
What are the challenges we face in the heating industry?
The obvious but significant challenge we face is the move to electrification of heat and renewable energy. Our existing infrastructure is largely designed for fossil fuel-based systems, necessitating substantial upgrades and retrofitting to accommodate renewable sources.
There is also a significant knowledge and skills gap between professionals and consumers, requiring extensive education and training to facilitate the adoption of renewable heating technologies. The industry also faces the ongoing challenge of training and recruiting enough heating engineers to meet the current demand let alone the future one. We also have the pressing issue that the avg. age of a heating engineer is over 55 years old, which means that within 10-15 years they will retire and we lose their expertise and experience.
Another key challenge we face is that heating is no longer the distressed purchase it was but is a considered, significant financial investment for homeowners. Where once customers would have to make a quick purchase decision because their heating had broken down, they are now spending a notable amount of time researching what their options are, the products, and installers. Due to the thousands of pounds required to install a home energy system, buying a heating system is similar to buying a new car, kitchen, or bathroom. It’s not a decision they rush into and they are therefore making an informed and educated buying decision as opposed to simply hiring their local plumber.
The result is that those small businesses need to change their service and offerings. They need to invest in marketing, developing their brand, increasing their brand awareness, offer customers good and credible information to win their trust and business. It’s all about profile and credibility. For many small businesses, this will be a challenge to achieve and will require investment and the recruitment of office staff.
The question is, can enough small, independent heating companies achieve this? Will we just be overtaken by the big national companies and what will that mean for customers?
