Association Comment: BHETA This is the future – act accordingly


An industry viewpoint from Will Jones, Chief Operating Officer of the British Home Enhancement Trade Association (BHETA).


Back in the first Covid lockdown when sales of all things garden started to take off exponentially, the biggest issue for the suppliers who had not foreseen such levels of end user demand was shortage of stock. Kantar Worldpanel Plus has termed 2020 ‘the year of garden’. We also began to see


speculation about how long this ‘boom’ could possibly last. Surely, there would come a time when all garden improvement tasks were done and/or that everyone would be sick of doing them? With that as a backdrop, we are now re-emerging from the third Covid lockdown, dealing with the trading complications of BREXIT and wrestling with the costs of freight. It is an opportune time to review what short and long term plans the industry needs to be making.


Positive economic indicators Despite the current challenges, especially in terms of supply chain and logistics, there are many extremely positive economic indicators. Moreover, taken together those indicators support the view that far from being a boom which will end, what we are witnessing is a fundamental shift in mindset. Outdoor space is not just something to improve while other activities are precluded, it is the new entertaining space, holiday space and tonic for mental health, whether that is working in it or reclining and enjoying it. The garden industry needs to plan accordingly. It would after all be tragic, not to mention ironic, if, after all we have been through, we were unable to keep turning that shift in mindset to economic advantage because we failed to gear up to do so. Let us look at where we are now.


At risk of stating the obvious we have the happy co-incidence of the country re-opening just as the traditional spring weather fuels the market. More than 40 million Covid vaccination jabs have been administered to date, boosting business and consumer confidence;


GCU May 2021


and with the Bank of England estimating around £125bn of extra savings in bank accounts, there is a good chance that at least some of that will drive a continuation in consumer-led demand. The economic indicators reflect


this positivity. Job creation rose at the fastest pace since December 2018. The IHS Markit/CIPS UK Construction PMI jumped to 61.7 in March 2021, from 53.3 in the previous month and well above market expectations of 54.6. Any reading above 50 indicates growth.


Growth in exports


New order growth accelerated to its fastest since September 2014. In addition, the latest upturn in input buying was the steepest since November 2020. On the price front, purchasing price inflation was the highest since August 2008. Meanwhile, after a record fall in exports in January, February saw a rebound with export growing 46.6%. Business expectations are at their highest level since June 2015, reflecting confidence in the UK economic outlook, the improving pandemic situation and pent up demand. The strength of the housing market is also good news with a boom in moves driven by the stamp duty holiday, which has been extended until September, and demand outstripping supply. As we all know the housing market drives home and garden improvement no matter what other factors apply, as


householders start work on new abodes or improve old ones for selling or attracting new tenants. To further the opportunities, BHETA has forthcoming networking events with both Dobbies and Blue Diamond. While no supplier, retailer, professional end user or DIY consumer can individually solve the current logistical problems, if the industry collectively appreciates the possibilities and plans accordingly, it will see that current demand is not freakish. It is an indication of the future if we all respond to it and raise the game accordingly.


It is an indication of the future if we all respond to it and raise the game accordingly.


About BHETA The British Home Enhancement Trade Association (BHETA) has an excellent record of representing home improvement (DIY), garden, housewares and small electricals suppliers. It is run by a non-executive board


and lead by an elected president and treasurer, all managing directors or chief executives of BHETA member companies. The board meets quarterly to discuss governance, finance and industry initiatives in which the association should take a role. There is also an executive team,


headed by the executive chairman and chief operating officer, a financial director, two sector managers responsible for home


improvement (DIY) and housewares, a marketing manager, member services manager and member services team.


Five specialist committees for home improvement (DIY), housewares, small electrical appliances, EOSC (environment, operations & safety) and export, comprising senior representatives from leading member companies meet regularly to ensure that members receive best in class advice and support.


• To find out more about BHETA lobbying, retailer networking and business support, contact Nicola Adams in BHETA Member Services on na@bheta.co.uk or on 07946 078566.


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