COMMENT & OPINION COMMENT & OPINION


SUPPLY ISSUES IN A POST BREXIT BRITAIN


Philip Charles, Merchant Sales Director of the Wykamol Group, considers the sustainability of supply in a post Brexit Britain.


THE UK POPULACE voted to come out of the European Union on 23rd June 2016, and although negotiations are still ongoing for our official withdrawal, the building industry has already begun implementing ‘smart’ plans for the future of housing development in the UK.


The Government has already committed to providing an average of 300,000 homes a year by 2020, but whether the industry will still be able to provide this is questionable, as Brexit will inevitabily impact both labour costs and product supply.


Navigating Overseas The UK building industry, just like every other sector, will have to learn to navigate any potential overseas trade tariffs and consider the depreciation of the pound when importing building products from abroad. All these factors will ultimately have cost implications for someone, but the question is who?


It’s not uncommon for


national UK builder’s merchants to source their products from over 50 countries. If the cost of their supply were to increase, merchants are left with two options; pass these costs onto their customers, or push back on their suppliers.


As a supplier of a large number of builder’s merchants across the UK, the Wykamol Group are working to avoid both of these outcomes, and in 2016 plans were fast-tracked to sustain the supply of the majority of our products by increasing the percentage of in- house manufacture.


Although we could not


“ Whether you voted in or out,


it’s important to see Brexit as an opportunity for the UK building industry.


”


have foreseen how beneficial it would be to safeguard our supply in 2015, the process began here with a significant investment, supplemented by an £80,000 government grant, into Wykamol’s Powder Plant, with the capacity to produce over 100 types of powder products at a rate of 200 tons a week, or 8,000 bags of multi-finish – that’s enough to cover 10 football pitches.


Products such as multi-finish, high impact finish, tanking


slurry, mortar repair, renovating plaster, board finish and bonding plaster are all in high demand at builder’s merchants, constituting approximately 30% of their overall sales.


Ta Taking contr aking cont ol


The 2016 Brexit announcement only enforced the decision we had made in 2012, to take


greater control over our supply. Our capability to manufacture was strong in most areas, having already invested in a Powder Plant


September 2018 www.buildersmerchantsjournal.net


and Chemical Treatment Plant over the years, but one area the whole of the UK Manufacturing Industry relied upon European import for, Type C Cavity Drain Membranes.


The UK suffers greatly from


flooding and over-population; two factors which directly relate to the growing need for water ingress management solutions.


As the population booms


and our little island’s land mass inevitably remains the same, homeowners dig down below their houses to acquire more space, feeding the growing demand for Cavity Drain Membrane Waterproofing Systems. Likewise, after the glorious summer we have


experienced this year, the Building Industry are watching and waiting for the inevitable flooding, as the dry ground will not absorb any sudden downpours.


Prior to April of this year, the UK were reliant on their supply of membranes exclusively from overseas. With the UK’s withdrawal from the EU looming, this left the Wykamol Group and other UK based suppliers under a cloud of uncertainty as to the sustainability of their membrane supply. We therefore invested £2.5 million into a membrane production plant of our own, not only ensuring we won’t be affected by import restrictions and delays, but also neither Wykamol nor our customers will feel the knock-on effect of rocketing price increases.


Wykamol’s machine has


been installed with the latest in manufacturing technology and can produce 16 q m of


membrane every minute. Working at full capacity we can produce 4.8 million square metres of


membrane every year, or enough to waterproof nearly 200 medium sized basements every day.


An industrial nation Whether you voted in or out, it is important to see Brexit as an opportunity for the UK building industry. Contrary to widespread perceptions, the UK manufacturing industry is thriving, and if the growth trend continues at its current rate, we will break into the top five largest industrial nations in world by 2021.


Further investment is the only way to maintain this growth, ensure that builders merchants can maintain affordable cost for their customers, and safeguard plans to combat the housing crisis. We are happy to be leading the way with these efforts here at the Wykamol Group.BMJ


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