Going for growth

The theme of this year's Builders Merchants Federation (BMF) Members' Day was "Accelerating growth", and so it was fitting that the event was held near Towcester, within an engine's roar of Silverstone.

Members had the chance to test their own speed skills at various events on the first day, but it was the second day where they learned about the driving forces behind the BMF and its roadmap for growth over the next few years.

"Our vision is to be the authoritative voice of the merchant industry," BMF chairman and Saint-Gobain senior vice-president Peter Hindle told the 212 delegates.

He conceded that at present that voice wasn't loud enough. Although BMF membership has grown from 324 in 2012 to 460 today, it accounts for 55% of the £13bn UK merchant market when the ideal is 75%.

To achieve a stronger voice, the BMF has developed a three-year strategy with six goals, which Mr Hindle outlined.

"We will establish the BMF as a must-join body. I'd like to see members banging down the door to join because we have a product that people want to be part of," he said.

The second goal is to highlight the merchant sector's contribution to the economy and have a bigger voice and recognition in government and key policy areas.

"The government doesn't understand what merchants do," said Mr Hindle.

"They understand housebuilding and car manufacturing. The number of job losses that have gone on in this industry have been pretty horrific; if that was a car plant it would be headline news."

The third goal is to promote industry standards for customer servicing, responsible purchasing, health and safety and training to "make the industry a good place to work".

Leading on from this, the BMF aims to be the leading body in helping to attract and develop recruitment.

"This industry is not sexy enough; we're competing with strong retail brands and hi-tech industries," said Mr Hindle. "The BMF apprenticeship scheme needs to be pushed harder."

The BMF would also be responsible for "professionalising the industry", he said, adding that the sixth goal was to ensure the organisation was financially viable.

BMF managing director John Newcomb said the membership growth of the past 12 months was the result of partnerships with major buyers' groups - PHG, LIMA and Fortis having joined forces with the BMF during that time - and new member services. These included a Burns night in Glasgow; a two-day branch managers' forum; a BMF Mastermerchant event at Lake Windermere; and a new policy manifesto.

The BMF has also secured an agreement with Miller Homes for a regional network of merchants to work with the company, which spends around £30m a year either directly or through its subcontract supply chain.

Recently the BMF also launched its youth recruitment campaign, which will be mailed to 750 centres and 7,500 schools, colleges and academies.

Mr Newcomb outlined the five key themes to achieve the BMF's six goals: industry analysis (see panel above); membership recruitment; strategic partnerships; membership services; and industry recognition.

To achieve the BMF's membership target of 500 merchants and 250 suppliers by 2017, one major multi-branch company would have to join by the end of next year, he said.

The BMF has identified the core growth targets as suppliers, general merchants and plumbing and heating merchants and suppliers but timber is also recognised as an opportunity.

The federation also wants to "leverage relationships" within the sector and has identified the Timber Trade Federation as one of its strategic partners.

It will also introduce new services which reflect the difficult issues facing merchants, such as chain of custody.

This month the BMF is launching its Diploma in Leadership and Strategy which leads to a Masters degree - thought to be the first offered by a trade association, said Mr Newcomb. A new in-branch mentoring programme will supplement this.

On October 21 it is holding its first youth recruitment open day at its Coventry headquarters; on October 28-29 its second branch managers' forum, and on November 11, its first timber trade forum.

The fifth of the BMF's key goals is to develop greater recognition in the industry.

"We want to be able to demonstrate what differentiates a BMF member from a nonmember," said Mr Newcomb, adding that, to reinforce this, a BMF customer charter will be launched in January. It will outline to customers why they should buy from a BMF member and what will be expected of members.

All these activities will culminate in the federation's industry conference in June next year, where the host will be former Olympian swimmer Sharron Davies, and the keynote speaker Tony Blair's former spin doctor, Alastair Campbell.

Wolfson calls for planning revolution
The building industry is one of the most important industries in the UK economy and one that will unlock opportunity for accelerated growth over the next 10 years, Lord Simon Wolfson, CEO of next plc, told the Members' Day.

however, while the economy was improving and Britain was "no longer getting poorer", there was a danger that growth would be funnelled not into "things", but into asset price inflation, particularly the housing market.

"This will lead us back to where we were - the puff and pop economy," said Lord Wolfson.

"Rising house prices is inflation; it doesn't mean the nation is richer. And price inflation is damaging to society; it transfers wealth from the young to the old and from north to south."

He said there were not enough houses being built in the UK and "knee-jerk answers" from politicians only made matters worse.

"Help to buy has helped to get housebuilding going but we are encouraging people to take out a 95% mortgage on a house they can't afford, at the bottom of the interest rate cycle. It can stimulate the economy only by raising house prices," he said.

He described it as a hair of the dog remedy: "The first effect seems positive but then it wears off."

Lord Wolfson said a fundamental reason that an insufficient number of houses were being built was the price of land, and he laid the blame on the planning system. It artificially inflated land values so the density of housing increased, and the quality decreased.

"The planning system we have isn't delivering homes we want to live in," he said, and called for a revolution in planning.

"We have a crazy method of zoning instead of leaving it to the collective intelligence of the population." As an illustration of the UK's "draconian planning system", he said that in the time it took for Heathrow terminal 5 to get planning permission, Hong Kong built a new airport.

Knowledge is power
As part of the BMF's aim to provide greater industry analysis it will work with market research company GfK and marketing company MRA to produce a monthly builders merchants index. Eighteen generalist builders merchant groups, representing 20 merchant brands, have been recruited to provide monthly data.

As well as helping merchants to understand the market better, gauge their performance against competitors, and identify new opportunities, it would also enhance the industry's voice.

"This project puts the industry on the map," said Michael Rigby, MRA MD. "At present it's very hard to get information about the size of the market and if you don't have that it's hard to talk to others about it."

The government and media were "obsessed" with housebuilding because data was available but beyond that, for example RMI, there was nothing.

"The merchant industry is invisible and yet merchants are best placed to know about the health of the building industry," said Mr Rigby.

The index would strengthen the sector's voice and could be used to build industry campaigns, he added

Timber companies recognised in BMF Awards
Howarth Timber & Building Supplies Ltd scooped the inaugural BMF Training Company of the Year award, announced at the Members' Day Awards dinner.

The award celebrates the BMF member that has made the greatest commitment to their employees' development through the use of BMF training services. Howarth Timber & Building Supplies has more than 20 people studying for the BMF Diploma in Merchanting, supporting them through two in-company training groups. It also offers a range of in-company BMF training courses for employees at all levels.

Managing director Nick Howarth said the company was committed to training.

"Our staff are the most important asset the company possesses," he said. "Our mission statement includes our desire to be known for the ability and passion of our people, therefore we make considerable efforts to give training and self-development opportunities to all of our workforce."

Mark Bowers, sales and marketing director at Snows Timber, won the inaugural Dorian Dugmore Wellness Award in recognition of his efforts to promote a healthy lifestyle. The BMF Apprentice of the Year Award (NVQ Level 3) went to Simon Melling of Builders Supply, Grange over Sands, Cumbria.

Luke McEvoy of Buttles in Enfield won the Apprentice of the Year Award (NVQ Level 2). Since leaving college 12 months ago he has completed his NVQ2 Apprenticeship in Timber Merchanting, achieved his fork lift licence, and saw training.

The BMF Young Achiever of the Year went to Magda Dexter, organisational development manager at Gibbs & Dandy.

Jo Callow of Knauf Insulation won the Young Supplier Achiever Award.

Glenn Paddison of MKM Building Supplies received a special commendation. He joined the company as a sales assistant and in 10 years has progressed to the position of branch director.

"He is an outstanding example of what a young person can achieve if they have the right "make the industry a good place to work". Attitude and desire to succeed," said BMF managing director John Newcomb.