Sixty independently-owned timber and builders merchants are to be linked in a buying group designed to give them extra muscle against industry giants.
The National Buying Group, operational from January 1, 2003, is a coming together of three prominent regional buying groups – the Scottish Independent Merchants Buying Association (SIMBA), the Chandor Consortium (South of England) and the Prospero Consortium (North and Central England and Wales).
The 60 businesses have a combined turnover of £400m with 130 branches, from the Shetlands to the Channel Islands.
Group spokesperson Gordon Bowie, managing director of Kilmarnock-based First Stop Builders Merchants Ltd, said: “We have people out there like Jewson and Travis Perkins but what we are doing is pulling together to become an independent national.”
Mr Bowie said the group would enable materials to be purchased at lower prices from manufacturers, helping the merchants compete against the big chains. It would also safeguard supplier arrangements.
He said the way forward for the industry was to support the independent merchant, which would enable suppliers to see the value of dealing with them.
A series of supplier agreements are expected to be struck in 2003, including some with large timber product manufacurers.
The group will be structured into regions, with SIMBA being the northern, Prospero central and Chandor, southern.
