Lakes Comment: Q1 2020

Mike Tattam, Sales & Marketing Director Lakes is BMBI’s Expert for Shower Enclosures & Showering.

Many bathroom and showering products are manufactured in China. While our factory in China is fully open and our UK stocks are high, as a result of the disruption many containers and ships along the global supply chain are in the wrong place, unable to unload or load, and extending the normal 6-8 weeks lead time. Stocks are arriving in the UK, but the lockdown here means many products are sitting in UK docks or on ships with nowhere to go.

The sudden mass closure of builders’ merchants, partly driven by media and social media pressure, meant that installers and homeowners were driven to the internet, taking advantage of easy online ordering and direct delivery. Once government eases restrictions and encourages the reopening of showrooms, merchants will have to work hard to win back a customer base that may have become more used to online buying. Making sure your staff are experts in their field, so they add value with advice and support (while adhering to social distancing guidelines), has never been more important.

Construction sites are returning to work, but it will be slower for the RMI market as the general public will be wary of inviting tradespeople into their home. Ensuring that they have full personal protective equipment (PPE) and can demonstrate they are operating to clear safety guidelines is fundamental in getting this sector of the market moving. Tradespeople who behave safely in PPE are more likely to be accepted than those who don’t.

As merchants and retailers return credit is a thorny issue, as most businesses will have emptied their cash reserves. The ability to pay suppliers in 30 days will be an issue, and the market will have to make provision for it.

It’s not all gloom. Some merchants report homeowners have been using their time at home to plan future building work. Cramped bathrooms, showering spaces that are a hazard for some of the family, or lack of an ensuite, become extremely important when you’re locked in for weeks on end. Holiday budgets that can’t be enjoyed abroad, may be spent on improving the home. The ‘bounce back’ may not be immediate but may be sooner than economists would have us believe.

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Launched in 2015, the award winning monthly Builders Merchant Building Index (BMBI) report is the only reliable measure of repair, maintenance & improvement (RMI) activity in the UK. Filling an important gap, it can be widely used in construction, and by economists, Government, national media, commentators and influencers outside the industry.

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