EEPfH Insulation Strategy Group

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EEPfH Insulation Strategy Group

• Insulation Summit
• 18 October 2005

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Content of this presentation

• Scope of the paper, aims methodology
• Key findings, emerging issues and questions

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Scope of the paper, aims methodology

• Independent assessment of current state of the
  insulation industry supply chain
• Assessment of the future state that the
  insulation industry will need to reach
• Identification of options available

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Current state
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Supply chain
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• Manufacturers
• Early notification of future government targets
  (EEC2b and EEC3) is necessary
• Growing demand for insulation materials from
  other parts of the construction industry

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Installation companies

• Need to maintain or increase number of jobs per
  day
• Need to reduce seasonal demand swings
• Key issues
• Being able to employ sufficient installers
• Number of priority group customers
• Carry-over from EEC1
• Loft top-ups

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Energy suppliers key issues

• Being able to identify priority group customers
• Lead in times and brand reputation
• Uncertainty over future of EEC

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EST, Local and national government

• Need for independent endorsement of insulation
  products
• Need to educate the consumer
• Timing to reduce seasonality
• Local activity local authority engagement

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Warm Front and Eaga

• Working with energy suppliers to identify
  priority group customers (reducing competition)

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Future state
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EEC1
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EEC2
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(No Transcript)
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Emerging issues and questions(i) Meeting
government targets(ii) Marketing
activities(iii) Discount and costs
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Meeting government targets
Non Priority group

• Early signals needed about EEC2b and EEC3
• Loft top-ups are not happening
• 50 pg target

Priority group
Priority group
Non Priority group
Split of population (priority group / non
priority group)
Split of target allocation
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Questions

• How can different players in the supply chain
  work together?
• How can the loft top-up issue be resolved?
• Is there a need for more quantification/ evidence
  to present to government?
• What things outside the insulation industry could
  effect its ability to deliver government targets?
• Is there a growing trend for a whole house
  approach?

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Marketing Awareness raising

• Need for sustained, consistent and coherent
  marketing campaign
• Need to educate the consumer about the benefits
  (financial and environmental) of insulation
  products
• Marketing throughout the year

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To promote the benefits of insulation products
EST, Aim to educate public (particularly
able to pay), to save carbon
Manufacturers and Installers, Aim to sell
product/ service
Energy suppliers, Aim to meet targets in
most cost effective way, promote brand
To identify clients, current focus on
identifying priority group customers
To increase uptake of energy efficiency products
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Questions

• What should the messages be? Do we need a common
  strap line?
• Where should EST put its resources to create
  maximum impact?
• Is there a potential mismatch between short term
  need to identify pg customers and long term need
  to raise awareness about insulation generally?

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Mass media TV / Radio / Print etc

• Targeted media
• Benefit slips office
• Dr Surgeries
• Local authorities
• Citizens advice bureaus

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Prices and costs

• Are low prices for insulation devaluing the
  product? Or is this the only way to stimulate
  demand?
• Can the unit cost for identifying pg customers
  be reduced through working with other partners?