The market slowdown is starting to hit many companies hard, with variations in the severity of conditions seen across the regions. While volume housebuilders are taking measures to cut costs, including reducing land spend and payments to supply chains (see story on page four) – with Taylor Wimpey and Barratt looking to shave up to 5% off this cost base – both large and small companies are battling to maintain margins in the face of falling demand and the reduced availability of credit. <br><br>The raft of trading statements released in January revealed the hardening conditions for housebuilders, with weakening forward order books and pull-backs on production schedules planned. Taylor Wimpey reported “subdued” conditions in the UK alongside “exceptionally challenging” US conditions, and stated that the focus in 2008 would be on “margin improvements rather than driving volume.” The company built 20,645 homes in the UK in 2007, compared to 21,910 in 2006, at an average selling price (ASP) of £190,000, up from £185,000 in 2006. <br><br>UK chief executive Ian Sutcliffe told Housebuilder: “The market is tougher in terms of sales conditions and more difficult on the credit side, but prices have so far been maintained reasonably well in the second …