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Online Builders’ Merchant to Make Significant Investment in AI in 2020
Fast-growing online construction materials supplier, CMOStores.com has announced major investment in web developments including cutting-edge artificial intelligence (AI) and machine learning technology into its six digital superstores. This will further improve the customer experience of visitors to the websites and drive business efficiencies.
Joining forces with Peak, the pioneer of the AI System, the online builders’ merchant will utilise the latest AI technology to provide a hyper-personalised experience for customers on the website. Peak’s Customer AI solution will provide predictive recommendations by learning from customers’ interactions with the website. This personalised experience helps connect customers with the products they are most likely to need, making the search of navigating the catalogue of products much easier. With one of the largest online catalogues in the sector, this will go a long way to improving the customer experience online.
Ben Hodson, marketing director of CMOStores.com comments: “We are known as a positive disruptor in what has been a traditional sector, and this latest investment marks our continued commitment to keeping customers at the heart of our business and using exciting new technology to deliver real benefits to them.
“With over 75,000 products across our six superstores, many that are used in conjunction with others in tasks or projects, the introduction of tailored recommendations for all users, based on their usage of the site, will further enhance the customer’s experience on our websites. The developments will enable customers to find exactly what they need more swiftly as well as reminding them of any associated products they may have forgotten.”
Over the next 12 months, CMOStores plans to further invest in developing and continuing to improve the customer experience for its Trade Superstore, Door Superstore, Drainage Superstore, Insulation Superstore, Roofing Superstore and Tiles and Floor Superstore platforms.
L-R Andy Dunkley, CEO of CMOStores.com, Marketing Director Ben Hodson
Andy Dunkley, CEO of CMOStores.com added: “We are proud to be the only builders’ merchant adopting AI in this way. Partnering with an AI leader like Peak is ground-breaking for the construction materials sector and will deliver clear benefits both to our customers and to our business.”
Richard Potter, CEO of Peak, said: “Online traders have a huge opportunity to build stronger relationships with their customers. The use of data and AI is a key enabler for them in delivering a hyperpersonalised service that ensures customers always find the right product at the right time for them. CMOStores.com is taking an industry-leading approach to drive forward innovative new marketing methods to engage with customers in the optimal way. Peak is thrilled to play such a key part in CMOStores.com’s AI journey as the business looks to positively disrupt its market and lead the next generation of AIdriven online traders. We can’t wait to see the results that our AI System brings to both the business and its customers alike.” More at: www.cmostores.com
Government Lays Out UK Freeports Plans to Boost Economy
New hubs of business and enterprise will be opened across the UK creating thousands of jobs, regenerating communities and ‘turbocharging’ Britain’s post-Brexit growth, the Government has announced. Up to ten new innovative Freeports will be opened across the UK as the Government seeks to level up the country and seize on the opportunities leaving the EU has presented.
A consultation has been launched setting out the Government’s vision for Freeports, with the aim of announcing the location of the new zones at the end of this year so they can be open for business in 2021. Prior to his appointment as Chancellor of the Exchequer, the Chief Secretary to the Treasury, Rishi Sunak, said: “Freeports will unleash the potential in our proud historic ports, boosting and regenerating communities across the UK as we level up. They will attract new businesses, spreading jobs, investment and opportunity to towns and cities up and down the country. This is all part of our mission as an open, outward-looking country, championing global free trade with vibrant Freeports that work for all of the UK.”
Secretary of State for International Trade, Liz Truss, added: “We are taking back control of our trade policy, and opening every corner of the UK to opportunities across the world. Freeports will unleash the potential of our historic ports, creating jobs and regenerating communities across the UK. These hubs will also deepen partnerships around the world as we restore our economic and political independence. Freeports represent a fantastic opportunity for our businesses to increase their trade with companies from all over the world. Not only will they help create jobs and level up the UK, but they underscore our commitment to championing global free trade – unleashing our country’s potential.”
According to the Government, Freeports will boost trade, jobs and investment with a view to building innovative business clusters that benefit the local area as part of the Government’s commitment to level up every nation and region. Freeports will also offer an exciting opportunity for cuttingedge customs, transport and green technologies to be trialled in controlled environments, before being adopted more widely in relevant sectors of the economy. The Government will work in close partnership with the Devolved Administrations so that all nations of the UK are able to share in the benefits of Freeports. Benefits of the 2020 Freeports model could include:
Goods brought into a Freeport do not attract tariffs until they leave the Freeport and enter the domestic market No duty is payable if they are re-exported When raw materials are imported and processed into a final good, duties are only paid on the final good Freeports could be located inland as well as adjacent to ports. This can reduce relocation or investment costs for existing manufacturing sites near ports A full customs declaration would not be required to move goods into a Freeport. This saves businesses time and makes it easier to import goods Planning reforms to help seaports develop within their boundaries and empower local councils to greenlight much-needed local construction projects A regeneration agenda to level up the local areas around Freeports Innovative environments to trial new technologies Challenge-based initiatives to build collaborative partnerships between ports, businesses and innovators.
In addition, the Government is considering tax measures that aim to increase investment in infrastructure, construction and machinery in Freeports to raise productivity, incentivise research to stimulate innovation, cut costs associated with processing goods through a port and reduce the costs of hiring workers working in Freeport sites. Once the 10-week consultation is completed, the Government will invite sea, air and rail ports to bid for Freeport status on a competitive basis.
More on the Government Freeport consultation can be found at: ttp://bit.ly/2wOF3SM
UK Softwood Conference Hears Positive Merchant Messages
L-R Noble Francis CPA, Chris Hayward NMBS, Neil Woods Covers, Fortis
The tight balance between supply and demand for softwood in the UK is set to continue throughout 2020, delegates at the Timber Trade Federation’s UK Softwood Conference were told in London on Wednesday 4 March 2020. Yet speakers from the timber and builders merchant sector felt more ‘bullish’ about prospects for 2020, citing pent-up demand.
A packed conference of over 200 delegates representing softwood traders and merchants from across the UK, Europe and Canada heard a range of data-driven forecasts, starting with Professor Noble Francis, Economics Director of the Construction Products Association, highlighting factors likely to impact demand, including the shortage of skilled wood trades. Going forward he estimated that some 500,000 UK construction workers were due for retirement over the next decade, continuing the deficit in skills so vital to the RMI market supplied by timber and builders’ merchants.
In the shorter term, Professor Francis also looked at the potential consequences of a ‘no deal’ Brexit at the end of this year, such as a further depreciation in Sterling of 15-20%. This would adversely impact prices on imported goods, increasing warehousing needs and costs, and resulting in sharp falls in UK GDP, which is known to be closely related to softwood demand, in the first two quarters of 2021.
Builders merchants, especially the independent sector, were much more bullish about softwood business prospects for 2020. From the conference’s first-ever merchant panel, Chris Hayward, Managing Director of the NMBS, commented: “Independents are better-positioned for growth as they are able to hold a greater breadth and depth of stock to service customers quickly and efficiently. We still see the softwood market in 2020 as bullish and anticipate potential growth in independents’ wood business of around 2.5%. Sustainability issues are also making themselves felt for the first time so merchants need to know from suppliers what they are doing about, for example, plastic wrap on products.”
Neil Woods, Timber Director at Covers Timber & Builders Merchants and Fortis Timber Category Director, also on the panel, commented: “There’s a possibility that 2020’s market may be similar to that of 2018, with a slower start and a busy Q2. The rush to complete works in 2018 may be mirrored in 2020’s spend pattern. There is a lot of pent-up demand: householders still need to get work done on their properties. “We have learned a lot since the Brexit referendum. Yes, we are living with ‘unknowns’ in the marketplace, but at the same time we must choose to be optimistic. Pricing is always a factor in the current tight market, but later in the year we hope that customers will be asking: ‘Do you have it? Can you get it to me by a certain date?’ Then the price question will drop lower down the list.”
Presentations were given by Olle Berg, Marketing Director of Swedish suppliers Setra Group, on the global and European supply situation. ‘Ten minute timber’ slots then followed, given by Keith Ainslie, Sales Manager at UK producers James Jones Group: by Patrick Towner, Sales Director of the Metsä Group, on Finland, and by Kevin Hayes, Managing Director of AKZ Timber UK on the healthy supply situation in Latvia.
After a warm winter in Northern Europe slowing the log supply into sawmills, a combination of global influences meant that supply would remain tight for some time to come, possibly inducing softwood price rises. Factors included the Finnish sawmill strike which had removed a million cubic metres of volume from the supply chain, a possiblypermanent reduction in supply from Canada, rising housing starts and a strong market in the USA, a return to albeit slowed growth in China, the effects of the Spruce Bark Beetle on supply and processing and continuing good demand in Europe.
“Timber traders and builders merchants are facing an accumulation of economic, climate and environmental factors which will challenge the supply of softwoods and softwood-related products such as plywoods into the UK market in 2020,” explained TTF Managing Director David Hopkins. “This may add to uncertainties in the construction sector for some time to come, with the market remaining in tight balance between available supply and demand.” More at: www.ttf.co.uk
2020 marks the 25th Anniversary of MKM Building Supplies Ltd, the UK’s largest independent builders’ merchant. MKM was built on the concept that skilled, local people who understand the needs of local customers should serve the local trade. MKM is differentiated through its unique business model, centered on branch directors owning an equity stake in their branch with opportunity to share in profits. David believes empowering people and supporting their entrepreneurial spirit has been a key driver of growth.
Executive Chairman, David Kilburn says: “Since day one, our company culture has always been very people focused, how we treat people has remained exactly the same. Every single person is important no matter what their role … our people are our biggest asset. Technology and the digital age have of course altered things, but our teams still do the majority of business either over the trade counter or on the phone. That may change in years to come, but essentially people buy from people. Relationships are key, our customers trust us to deliver quality products with great service as their own businesses rely on it – our teams appreciate that and make customers the priority. More so than any other industry, this is a people business and good relationships are the absolute bedrock of that business.”
Today, MKM Building Supplies employs over 1650 people and last year recorded sales of over £460 million. Already this year MKM has opened its 70th branch and has ambitious growth plans to be operating 100 branches by 2021/2022.
Looking forward, MKM has an ambitious growth programme to open a further 30 branches in the next two years. David adds: “Today, we still face challenges. We have an expansive growth programme but finding good properties in good locations can be a challenge and planning applications can be very slow, which frustrates progress. Our own recipe for success, now fine-tuned over 25 years has been giving customers what they want, employing and retaining the best staff, engaging people in profit generation activities and of course having fun at work.” More at: www.mkmbs.co.uk
PEFC Stakeholder Workshops Prepare for Updated Standards
PEFC’s revised Chain of Custody ST 2002 and PEFC Trademark ST 2001 have now been approved by the General Assembly. Although published on 14th February 2020, there is an 18-month transition period before they have to be implemented.
Certified companies will not be expected to work to the requirements of the revised standards until they have first been assessed by their certification body at the point of annual audit/surveillance visit. UKAS (United Kingdom Accreditation Service) will need to ensure that certification bodies are working in line with our new standards before they can audit clients against them. To train certificate holders on the new standards, they are hosting a series of interactive workshops for those involved in administering Chain of Custody systems. The first of these were held last month in Sheffield and London. The next ones will be held in:
Newcastle – Tuesday 12 May Sheffield – Tuesday 23rd June Bristol – Wednesday 16th September
They are free to attend. If you’d like to register your interest in any of these workshops email: hilary.khawam@pefc.co.uk
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Land Purchase Opens up Growth Opportunities for A&J Scott
After a decade of investing in new capital equipment at its site in Northumberland, A&J Scott is pleased to start 2020 by announcing a different type of investment, though one which might in time prove to be the company’s most ambitious yet.
The company, one of the UK’s leading independent sawmills, has completed the purchase of a parcel of land adjacent to its main site near Alnwick in Northumberland. This purchase will add up to 25 acres of land to the 15 acres on the company’s existing site, opening up a wide range of possibilities for future growth at the company.
This follows a period in which the family-owned business has invested over £9 million in new capital equipment, including a major upgrade to the main sawmill, Mill 7, at Wooperton, construction of a new fully automated bandmill, installation of a new state-of-the-art processing and handling line for re-saw operations at the site and also the purchase last year of the Chirnside Sawmill near Duns in the Scottish borders.
The company is now well positioned for sustained growth in its main markets for fencing products, railway sleepers, garden product components and other outdoor timbers in the years ahead, building on its record of delivering quality sawn timber products and high standards of customer service to its loyal base of customers across the UK.
The range of products the company can offer has also extended in the last year, with the addition of NHSS4 highways standard fencing to its existing fencing ranges. This range was developed to meet growing demand
Managing Director Robert Scott in the newly constructed bandmill, which specialises in cutting large diameter logs.
from a number of national contractors and has already seen A&J Scott supply materials for a range of high profile projects across the country.
Robert Scott, Managing Director, said: “The relationships we have with our customers give us the confidence to plan and invest for the future. We are now examining the possibilities opened up to us by the addition of this land to our site, and we will use these opportunities to develop our capacity and output in the most efficient ways possible. The new developments will be designed to enhance our sawmilling output, product quality and service standards in the years to come.” More at: www.ajscott.co.uk
New TANALITH Treatment Facility at GE Robinson Walsall
GE Robinson, part of the Haldane Shiells group and one of the largest independent merchants in the UK and Ireland, has invested over £350K in a brand new high pressure timber treatment facility at its Walsall site. The new 2m diameter x 12.5m long treatment vessel will allow G E Robinson to increase and extend its stocks of green and brown preservative treated sawn and machined timbers for their customers in the construction, agricultural, garden buildings, landscaping and fencing sectors.
Branch manager, John Leach commented: “It is a very exciting time for Robinson’s. Over the past six months the site has undergone a major refurbishment in its milling facilities creating extra capacity for machining, re-sawing and cross cutting work. The treatment plant is the last piece in the jigsaw and will be a game changer for the business allowing us to offer excellent quality treated timber to our customers.
“We will be ramping up our stocks of treated sleepers, fencing, purlins and shed/stable timbers to service our existing and new
customers. We will also be offering a very competitive treatment service for our customers’ own timbers when required. This service can include collection and delivery when required throughout the Midlands region.
“We have partnered again with Lonza that are market leaders in timber protection. Using the very latest TANALITH wood preservative with its unique and award winning BARamine technologies built-in will give our customers the confidence of using long lasting timbers, protected against decay and insect attack, that will do the job they are expecting. Our treatment plant operators are experienced in providing relevant treatments to meet the eventual end use requirements of the timbers. Equally our sales team can provide advice to our existing or potential customers about the key treatment considerations when buying treated timbers from GE Robinson or arranging service treatments to meet their exact needs.” This is the fourth TANALITH plant to be installed into the Haldane Shiells Group with other plants at their Salford, Garstang and Newry sites. More at: www.lonzawoodprotection.com/eu
Wood for Good Appoints New Campaign Manager
The timber industry is taking on the climate emergency with a new campaign manager and a new focus. Wood for Good the timber industry’s campaign for the use of wood in design and construction, has welcomed Sarah Virgo as the new campaign manager. Sarah will lead the campaign, which focuses on the benefits of wood as a lowcarbon material, taking the helm from Christiane Lellig.
Sarah said: “This is an exciting time to join the campaign and instil the message of how wood contributes to low carbon in the built environment. It is a message from the timber industry that there are readily available solutions and I look forward to spreading the word.” Sarah is an experienced marketer and digital communications professional and is a member of Scotland’s 2050 Climate Group Young Leaders Programme. She will be based at Confor’s offices on George Street in Edinburgh.
Christiane Lellig was campaign manager from May 2016 and pushed the agenda for increasing the use of wood in homes, successfully reaching architects and construction professionals throughout the UK. Christiane said: “It has been an honour and a pleasure to work with colleagues across the timber industry, as well as many inspiring architects, engineers and developers. Timber offers a great opportunity to create a net zero environment and should be embraced by any built environment professional.
“It’s important to understand how this natural material can be used, how it behaves in different contexts and to develop the skills to design and build with wood. With the right installation and maintenance, timber buildings and joinery can last for centuries.” Christiane will continue championing sustainability in construction through other projects and remains on hand to offer consultancy support to Sarah. More at: www.woodforgood.com
Peel Ports Forging Ahead
A major new facility for UK timber trade has opened up on the River Medway in Kent following a £27 million investment by operators Peel Ports. The site at Wellmarsh provides scope for storage, processing and handling of all timber types. The facility is based at the Port of Sheerness, which is the largest terminal of its kind in the UK, handling 1.1 million tonnes of timber and forest products a year.
The port already has 40-acres of timber storage facilities and Peel Ports’ investment takes it to a total of over 50 acres. The secure base is used to supply factories, production lines, construction projects and retailers, with rapid access to London via the M2 and M20. There is a further option for international distribution. The Port of Sheerness has 11 metres of water depth with no tidal restrictions or lock system, allowing for unrestricted 24 hour berthing.
Port Director Richard Goffin said: “This investment is a direct response to the interest we’ve had from throughout the construction sector in using the Port of Sheerness as the ideal location for serving the south-east construction market. As well as supporting the local business community, we’re also proud to have created a number of new permanent jobs at the port, underlining the role we play as a major employer in the region.”
Liverpool’s importance in the future of transatlantic trade also received a major endorsement in February with a visit from the US ambassador to the UK to discuss commercial opportunities. Robert Wood Johnson was making his first trip to the UK’s only west-facing deep-sea container terminal, where he was joined by several leading companies already involved in trade with North America. Ambassador Johnson said: “It was an honour to visit Peel Ports Liverpool, a historic port with a very bright future. This was an opportunity to tour an amazing facility and meet with representatives from important transatlantic companies such as Cargill, ADM, ACL and Jenkins. “President Trump is committed to striking a broad, comprehensive free trade agreement with the United Kingdom. Cutting-edge deep water ports like Liverpool2 will be the gateway for the increased trade, investment and jobs this agreement will bring both our countries.”
Mark Whitworth, Peel Ports CEO, said: “Liverpool is the UK’s foremost port and is ideally positioned for increased trade with the US and indeed the rest of the Americas. It has the relevant investment and infrastructure to make it the UK’s most important and valuable trade link to take our commercial activities across the Atlantic to a new level. As we look ahead to a post-Brexit future, we must make the most of trade opportunities across the Atlantic for the sake of our economy and the Liverpool area is ideally placed to support a positive future for the nation’s import and export activity. Attention has inevitably turned west and we are ready to play our part in ensuring a positive future for UK plc.” More at: www.peelports.com
Travis Perkins, the UK’s largest supplier of building materials, has been recognised as a UK Top Employer by the Top Employers Institute following a comprehensive and detailed assessment, including a robust evaluation according to a number of criteria and people practices which were independently verified.
Organisations certified as Top Employers are known to dedicate themselves to providing the very best working environment for employees through their progressive ‘people-first’ HR practices, according to Top Employers Institute CEO David Plink, who said: “To become recognised as a Top Employer, an organisation will have to prove that the implementation of their people strategies enriches the world of work of their employees. The certified participants are a shining example of a dedication to people practices as they continuously commit to empowering their employees for a better world of work.”
This Top Employers recognition follows last year’s ranking by LinkedIn of Travis Perkins as the UK’s top 20 company where British workers want to land a job and shows Travis Perkins continued to improve on its previous performance by scoring particularly well in the areas of compensation and benefits, workforce planning, talent strategy and culture.
This marks Travis Perkins 11th year of recognition by the Top Employers Institute. Group HR Director, Carol Kavanagh, said: “We are really pleased with this recognition, we know being a good employer means we must continue to work with colleagues to keep improving our workplace. We consider everything from recruiting the best talent to well thought out benefits, working conditions and career development opportunities that ensure we retain and build on our talent so we can continue to have the best people and the best place to work in our industry.”
The Top Employer Institute is the global authority on recognising excellence in people practices and identifies organisations that demonstrate excellence in HR and employee conditions. Established more than 25 years ago, the Institute has certified over 1,300 organisations in 115 countries. More at: www.travisperkins.co.uk
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