VIEWPOINT


LOOKING BACK AND TO THE FUTURE


James Beesley, commercial director of independent builders’ merchant, Beesley & Fildes, reflects on the challenges that have shaped the industry in 2022 and what lies ahead.


THE LAST 12 months have been challenging for the whole of the construction industry and its supply chain. Rising inflation, energy bills and the overall cost of living crisis have collided with skills and materials shortages plus volatile product prices. To navigate these issues, the merchant industry has had to respond quickly and proactively. Although there have been factors outside of anyone’s control, forward thinking strategies and a focus on people and customers, have helped merchants to remain resilient in difficult times.


Shifting sands


Some of the biggest challenges over the past year have been driven by the cost, freight, and availability of construction products. Following huge price increases in commodities in 2021, including insulation, plaster, plasterboard, steel, and timber, there have been further shifts in recent months.


Since the summer, a slight slowdown in the construction market, especially the repairs, maintenance and improvement (RMI) market, has enabled manufacturers to build some of their stock levels. At the same time, the prices of some products, including timber, have begun to drop and continue to do so. This means merchants must walk a tightrope to purchase sufficient stock to meet customers’ demands without significantly reducing their margins or losing money.


Having a strong product knowledge is crucial to help address this challenge. At Beesley & Fildes, we have product managers responsible


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for monitoring their part of the market and researching sales and price patterns. This enables us to keep track of change and quickly react when needed, including adjusting our purchasing strategy. This expertise is also applied within our 11 branches to help customers find products that meet their specific needs, with budget becoming a top priority. The knowledge of our product managers means they can advise customers on potential alternatives to products they feel may be cost prohibitive.


A step ahead


Despite ongoing uncertainty, there has been growth and investment across the merchant industry over the past year. While addressing current challenges, Beesley & Fildes has also taken a longer- term view of the market and our customers’ changing needs. This approach has resulted in an investment strategy focused on the next 20 -30 years. In 2022, this saw us invest £3m in upgrading our facilities, including £1.2m in new automated equipment at our timber milling facility in Widnes and a further £2.2m in the development of a new distribution centre. We have recently appointed a new timber sales manager to help promote the benefits of our timber investment, including a quicker and higher quality service for our customers. This will enable us to take advantage of the opportunities we have identified in 2023, including partnering with more small to medium-sized housebuilders across the north west.


A successful business relies on the strength of its people and


www.buildersmerchantsjournal.net January 2023


skilled teams. However, finding and keeping talent has not been easy for merchants and this trend has continued to shape recruitment strategies over the past year.


Investment in more training and development is crucial for people at all levels and will be another key focus in 2023. For those joining the industry for the first time, there is also a need to change mindsets. There is a tendency for people to see merchant roles, particularly more manual labour, as short-term jobs. We need to address this by more proactively promoting the career paths that exist in our industry, including the opportunities for learning and upskilling which can lead to higher earnings.


To help strengthen the Beesley & Fildes team, we have partnered with an external recruitment company and appointed a new HR manager this year. The aim is to help us quickly and effectively identify the best people for our roles, and to enhance the training we offer to our staff. In the year ahead, this includes developing more structured career plans for people at all levels, ensuring they can progress and keep building their knowledge and skills.


We have recently


appointed a new timber


sales manager to help promote the benefits of our timber investment, including a quicker and higher quality service.”


Building resilience Without a crystal ball, it remains impossible to try and predict what lies ahead both economically and politically. But one thing that won’t change next year, is the merchant industry’s commitment to its customers and providing the best possible service. Achieving that aim will not only require a focus on the future, but the systems, technology and people that can be deployed now to drive efficiencies, create new opportunities and generate growth. BMJ


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