NEWS EXTRA
BMF PUSHES BUILDING BOUNDARIES
The four pillars of the BMF’s stratgey going forward were laid out by BMF CEO John Newcomb to delegates at the association’s conference last month.
“WE ARE THE only trade association that represents the interest of both builders’ merchants and also suppliers and we are very proud of the fact that we cover the whole of the building material distribution sector,” BMF CEO John Newcomb told delegates in his opening address to conference. This fact is important in the federation’s ability to talk to Government at the highest level, he continued.
“We now have 395 merchant members and 375 supplier and service members. Our members employ just over 200,000 people and our merchants operate through just under 60000 branches. So quite a substantial chunk of the constructing industry is contained in this room.” In the last year, the BMF acquired the Institute of Builders Merchants and Newcomb reported that membership has now grown in the last six months to just under 1000 members of the Institute. “We have also doubled the number of corporate supporters,” said. Turning to the association’s efforts of the past 18 months, Newcomb said he was incredibly proud of the work that that trade association has done during the
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Covid pandemic. “I’m also proud of the way that the members have interacted with us during that time. I believe we can say that we have finally come of age and that we are finally seen as an essential industry by government. When you look back at some of the work that we and our members have done over the last 18 months it is quite incredible,” he said.
The BMF estimates that the merchant market is valued at £22bn, with the national groups currently accounting for 48% of the market, buying groups for 33% of the sector and independents who are not part of buying groups account for an estimated 19% of the market. BMF members currently account for 85% of that market.
He continued: “There are of course huge changes going on in all these sectors and these will continue: the selling off of divisions such as Travis Perkins’ heating and plumbing division, for example, Grafton has sold off their traditional merchant businesses, and we are all aware of the influx of PE into the sector, and how that might change the dynamic.
“As a board we have now decided to focus on four strategic
things. Absolutely primary in this is member value. We need to be constantly looking at delivering value to our members, whether they are a merchant or a supplier or service member. Unless we deliver that value there is no direct benefit for them to be a part of a trade association. Skills isanother area to focus on. We know this is absolutely vital. This is a great industry to work in but we do struggle to attract people and persuade people from outside of what a great industry it is. We will be working on this as the BMF but also as part of the Construction Leadership Council to look at how we raise the profile of the sector, how we encourage new, more diverse sets of people into the industry.”
Supply chain collaboration is a third area and Newcomb said that this has really come to the forefront over the last 18 months. “Merchants have realised that they cannot operate without suppliers and vice versa. We need to find ways of forging closer relationships between merchants and suppliers and I believe that, as the BMF, we are ideally suited to bringing those two sectors together. Today is a great example of how we are doing this.”
Finally, he said, there’s government influence. “We finally have a seat at the top table as merchants and building material suppliers, and we need to make sure that we keep that seat and ensure that we are actively influencing government policy.
“We will continue to represent you at government. These are the four key strategic visions member value skills development, supply chain collaboration and government influence which will shape the BMF over the next three to five years. BMJ
INDUSTRY FORUM
Frank Elkins, is COO of Travis Perkins plc.
THERE ARE THREE areas that I think are really important for the industry to talk about,”
INDUSTRY FORUM
Paul Bence is the sixth generation of family to have run the independent builders’ merchant that bears his name.
ESTABLISHED IN 1864, the George Bence Group now turns over £36m and its 8th branch is opening shortly and, Bence said he was proud to say that the company is the largest independent merchant in the Cotswolds.
“There is a real emphasis on the community and we do support various community projects,” he said. Bence has been working in the family business for 20 years and took over as managing director in 2010, something he described
www.buildersmerchantsjournal.net December 2021
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