MIKE JEFFREE: HOW HAS THE BUILDERS MERCHANTS SECTOR COPED WITH THE PANDEMIC?

John Newcomb: After the initial shock of lockdown, the sector has coped extremely well. The BMF was invited to join the Construction Leadership Council’s Task Force (CLC) at the beginning of the pandemic and this powerful grouping gave us a direct line to government to raise members’ concerns and quickly disseminate the information they required.

We also pressed government to clarify that construction was classified as an essential industry, with work continuing provided it was safe to do so. This meant changing working practices on construction sites and within builders merchants. This was assisted by Site and Branch Operating Guidelines from the CLC and BMF through the pandemic and got us back to work quickly.

MJ: HAS THE CRISIS PERMANENTLY CHANGED THE WAY THE SECTOR OPERATES, AND IF SO IN WHAT WAYS?

JN: We saw many businesses fast-tracking introduction of online trading and launching ecommerce sites in response to the pandemic. These will become ever-more important going forward.

MJ: HOW IMPORTANT TO THE SECTOR WAS THE BOOM IN DIY AND RMI THROUGH THE PANDEMIC?

JN: The BMF Builders Merchants Building Index showed sales of timber for fencing and decking and landscaping products soar from late Q2 2020 – and home improvement has been active ever since.

Leading on from this, we’re keen to support a coherent National Retrofit Strategy to upgrade existing housing for the next 20 years. Long-term government backing will give confidence and consistency to businesses and households who want to invest in retrofit, helping create 100,000 jobs as well as addressing energy and water inefficiency in 28 million homes.

MJ: THE CONSTRUCTION SECTOR INTERNATIONALLY IS EXPERIENCING PRODUCT AND RAW MATERIALS SHORTAGES AND PRICE INFLATION. WHAT WOULD THE BMF MESSAGE BE TO THE TIMBER SECTOR ON SUPPLY AND MAINTAINING PRICES AT REALISTIC LEVELS?

JN: The supply issue is across the board in building products. There are even reports of merchants running out of cement, which is like Sainsbury running out of milk. The situation in timber is particularly acute and looks set to continue or worsen throughout the year and possibly beyond. It stems largely from extremely high global demand and reduction in supply in the main forestry countries. The UK is in competition with the US and China, in particular, and both those markets are prepared to pay more to ensure supply, so prices are unlikely to come down.

The merchant’s role is to manage stock, but forward planning and communication throughout the supply chain are essential, and that includes end users. To tackle the issues and raise policy makers’ awareness of them, we must first realise we’re in it together and avoid the blame game along the supply chain. To this end, the BMF is joint chair of the CLC Product Availability Group, and the TTF attend this Group, which meets every month online. Merchants also need to understand what demand looks like going forward in order to match supply and provide accurate lead times to customers.

MJ: WE’RE NOW SIX MONTHS ON FROM BREXIT BECOMING A PRACTICAL REALITY. HOW HAS IT AFFECTED THE BUILDERS MERCHANTS SECTOR AND ARE THERE OUTSTANDING ISSUES YOU WANT GOVERNMENT TO RESOLVE?

JN: Broadly the impact on business has been limited and merchants have been much more focused on the pandemic and now product and raw material availability. There are, however, ongoing concerns about trade for companies in Northern Ireland, or those with branches there. Getting stock there and the added paperwork and costs are issues that need addressing.

The transition from CE to UKCA marking must also be dealt with and we are on the CLC Standards Working Group looking at this and raising it with the Ministry of Housing, Communities and Local Government (MHCLG). As things stand, companies are going to be left holding a lot of CE-marked products come January 1 2022, when the change takes place. Radiator suppliers, for example, are concerned that, in the depths of winter, they won’t have sufficient UKCA-marked stock and won’t be able to sell CE-marked products. It’s ridiculous, especially given the current product supply shortages. We need some sort of extension to the deadline.

Anyone with concerns on this topic can contact Brett Amphlett at the BMF, who is on the CLC working group.

MJ: WHAT IS THE BMF DOING TO PRESS GOVERNMENT ON GETTING UK HOUSE BUILDING TO THE LEVEL NEEDED, GENERALLY ACCEPTED AS 300,000 A YEAR?

JN: The CLC’s prime function has been supporting the sector through the pandemic, but now it’s looking at longer term goals and house building volumes is one of them. Collaboration across construction is key and the CLC’s Housing Working Group, which we also sit on, is bringing together a range of stakeholders, including trade bodies, companies and government representative organisations.

Government is also placing great store on modern methods of construction. We do see these as part of the solution, particularly in social housing. But we don’t see them significantly replacing traditional UK building methods – these will still have to provide the lion’s share of new homes.

MJ: THE GOVERNMENT MANTRA FOR POST-PANDEMIC RECOVERY IS ‘BUILD BACK BETTER’. WHAT DOES THIS LOOK LIKE TO THE BMF AND WHAT IS YOUR ENGAGEMENT ON THE TASK ?

JN: The National Retrofit Strategy is one way to build back better and it now has the backing of over 50 organisations within construction and beyond. Our sector also has a vital role to play in the CLC’s CO2nstruct Zero cross-industry initiative to drive carbon out of the construction supply chain by 2050 and thus determine the built environment for generations to come. Four BMF member companies were amongst the first 14 zero carbon Business Champions, who have committed to achieving net zero in their business, announced by the CLC and more are applying to join them, with three more to be announced as part of a second wave of champion appointments.

Part of the role of a Business Champion is to share their experiences and help others on their journey. Similarly, our new Sustainability Forum is about raising awareness and sharing ideas and best practice. We mustn’t forget that we are only at the start of the journey in terms of improving construction’s carbon and wider environmental performance and we’re all at different stages.

Construction will also have a presence at COP26, which the BMF will attend. Building remains one of the biggest GHG emitters, but we will stress that, if we get our environmental and carbon strategies right, we can also be one of the biggest success stories.

MJ: LATEST BMF NEWS INCLUDES THE REPORT THAT YOU ARE ‘FORGING AHEAD WITH IMPLEMENTATION OF THE ETIM MODEL OF DATA CLASSIFICATION’. HOW SIGNIFICANT IS THIS FOR THE BUILDERS MERCHANTS SECTOR?

JN: Covid has pushed digitalisation to the fore and we expect this to progress strongly, with transactional websites highlighting the importance of data exchange between suppliers and merchants and the need for digitised classification systems like ETIM. Essentially it provides a common standard for communicating and sharing data. By simplifying the process of transferring product information between manufacturer and merchant it provides accuracy, saves time and reduces costs.

MJ: THE BMF HAS ALSO MERGED WITH THE INSTITUTE OF BUILDERS MERCHANTS AND LAUNCHED A TEAM LEADER SUPERVISOR APPRENTICESHIP. DO THESE INDICATE THE BMF IS SETTING EVEN GREATER STORE BY TRAINING FOR THE FUTURE?

JN: Training and apprenticeships have always been an important part of the BMF’s support for members and we’re always looking to develop and improve the range of courses on offer. Many are already backed by third party certification and the merger with the IoBM will create further opportunities for people at every level within the industry to study for a recognised certificate of personal development.

MJ: WITH INDICATORS BECOMING MORE POSITIVE FOR THE ECONOMY GENERALLY, WHAT IS YOUR OUTLOOK FOR UK BUILDERS MERCHANTS ?

JN: There will always be challenges, but equally there will always be opportunities. This is a fantastic sector and over the past 14 months or so it has shown both its resilience and ability to adapt and evolve.

Added to this there’s a new spirit of collaboration throughout the construction industry. The wide range of organisations working together within the CLC is a prime example. We’ve shown how powerful it can be to speak to government with a single voice throughout the pandemic. Now we are using that wider industry voice to work with it to help find the best ways to ‘build back better’.