BMBI

Dear Editor,

Post-pandemic, I’ve noticed a shift in the way that many fabricators frame their revised lead times, with the inference that trade customers are now more comfortable than they used to be with deliveries in 10 days rather than five.

That’s certainly true to a degree, as installers continue to work their way through busy order books. But despite what some big players in the market would have us believe; lead times really do still matter. Certainly, there’s very much a place for the kind of 3.5 day lead time that Euroglaze has restored for standard white frames in Rehau PVC-U.

Ordering from us before 3pm on Monday for delivery on Thursday means you can squeeze in extra jobs at short notice and eliminate the costly downtime which so often happens at the end of the week on three or four day installs.

We supply stockists and trade installers right across the UK, and the feedback they give us is that our reliable 3.5 day turnaround gives them the flexibility they need to maximise output on all five or even six days of the week - therefore boosting their productivity and profitability. With signs of a slowdown coming in the market, competition will obviously start to increase, and I think it’s inevitable that we will see much less tolerance in the trade and amongst homeowners for extended lead times and anything less than top notch customer service.

The whole market has been operating in a bubble for almost two years and there could be a rude awakening coming for companies who have taken their eye off the ball when it comes to efficiency or become a little too complacent in responding to customer demands.

The lean manufacturing environment here at Euroglaze means that frames pass through our shopfloor in hours rather than days and are right first time without wasteful re-works. As well as 3.5 days on white, that means we can also offer 7-day lead times on all our standard colours. It makes us a reliable and cost-effective partner and when things get tough, that will be more important than ever.

Martin Nettleton

Managing Director, Euroglaze

BUILDERS MERCHANT BUILDING INDEX

FLAT BUILDERS MERCHANTS’ JULY SALES WITH VOLUME DOWN -12.8% AND INFLATION UP +15.0%

The latest figures from the Builders Merchant Building Index (BMBI), published in September, reveal that builders’ merchants’ value sales were virtually flat (+0.2%) in July 2022 compared to the same month in 2021. As in previous months, volume sales were down (-12.8%) yet price inflation remained high (+15.0%).

Ten of the twelve categories sold more in July 2022 compared to the previous year, including nine which outperformed Merchants overall. Renewables & Water Saving (+25.5%) Workwear & Safetywear (+20.2%), Kitchens & Bathrooms (+13.1%) and Plumbing, Heating & Electrical (+10.7%) did best. Only Landscaping (-4.6%) and Timber & Joinery Products (-14.4%) sold less. Compared to July 2019, a more normal pre-pandemic year, total merchant value sales were +13.3% higher. With two less trading days this year, like-for-like sales were up +24.1%. Three categories did better than total Merchants: Timber & Joinery Products (+23.8%), Renewables & Water Saving (+18.6%) and Landscaping (+17.7%). Heavy Building Materials (+12.3%), Kitchens & Bathrooms (+11.3%) and Plumbing, Heating & Electrical (+2.9%) all grew more slowly.

LAST THREE MONTHS

Total sales in the three months May to July 2022, were +4.4% up on the same period last year, with price inflation of +16.5%, and volumes down -10.4%. There was no difference in trading days. Ten of the twelve categories sold more than the Merchants overall with Renewables & Water Saving (+20.0%), Kitchens & Bathrooms (+17.4%) and Workwear & Safetywear (+14.4%) doing best. Timber & Joinery Products (-7.2%) was weakest.

MONTH-ON-MONTH

Month-on-month, total merchant sales were down -2.6% in July compared to June 2022. Volume sales were down -5.2%. Prices rose +2.7%. With one more trading day in the most recent period, like-for-like sales were -7.3% lower. Renewables & Water Saving (+4.8%) was the strongest category month-on-month; Landscaping (-9.1%) was weakest.

ROLLING 12-MONTHS

Total Merchants sales in the 12 months August 2021 to July 2022 were +20.4% higher than in the same 12 months three years earlier (August 2018 to July 2019). Total like-for-like sales were +21.3% higher with two less trading days in the most recent period. Eleven of the twelve categories sold more with Timber & Joinery Products (+39.1%) and Landscaping (+36.1%) well out in front.

GfK’s Builders Merchant Panel

GfK’s Merchant Panel includes national, multi-regional and regional merchants such as Buildbase, Jewson, Travis Perkins, EH Smith, Gibbs & Dandy, MKM and Bradfords. GfK’s Builders’ Merchant Point of Sale Tracking Data represents more than 80% of the value of the builders’ merchant market. GfK insights can trace product group performance and track relevant features. GfK can also produce robust like-for-like market comparability, tailored to the requirements of an individual business.

The Builders Merchant Building Index

Builders Merchant Building Index (BMBI) appears every month, in print and online. A full quarterly report is published every three months. The BMBI is a brand of the Builders Merchant Federation. Launched and produced by MRA Research, it uses sales-out data from GfK’s Builders Merchant Panel. BMBI includes a panel of leading industry Experts, who speak exclusively for their markets.

For the full report, including comments from the BMBI’s panel of leading industry Experts, please visit www.bmbi.co.uk.