Climate change is the biggest challenge facing humanity, and we all have a part to play in making our tomorrow a little greener, says our Sales & Marketing Director and BMBI Expert Mike Tattam.

You don’t have to visit Antarctica to witness the devastating consequences of climate change – it’s all around us. Extremes of weather, rising sea levels, carbon emissions at their highest since records began and wildlife driven to extinction, all as a result of human activity.

While the Kyoto Protocol and Paris Agreements have prompted most countries to create and implement policies to reduce their environmental impact, it has yet to have the desired effect and we are fast approaching the point of no return. The global temperature is rising and if it goes beyond two degrees Celsius above pre-industrial levels, the impact is likely to be severe, widespread and irreversible.

In our industry, climate change has been a hot topic for some time particularly with regards to energy efficiency in buildings and low carbon products. The shift to green has encouraged merchants and their suppliers to consider the sustainability of their operations and this will become more widespread if the Government’s proposed Environmental Bill is passed later this year.

Originally tabled in 2019, the first Environmental Bill was shelved due to the election but it’s back for 2020 and, if passed into legislation, it will impact us all.

The draft bill requires the Government to set at least one target in four key areas: air quality, biodiversity, water, and resource efficiency and waste reduction. There will also be a target for the reduction of fine particulate matter (tiny particles which are inhaled). While the exact targets will not be confirmed until after the Bill is passed, it is likely that the resource efficiency and waste production requirements will be particularly pertinent to builders’ merchants and their suppliers.

Polluter pays
The Environmental Bill’s Resources & Waste strategy includes initiatives such as a tax on plastic packaging which uses less than 30% recycled plastic and minimum requirements to encourage resource-efficient design. The big one, however, will be the invoking of the ‘polluter pays’ principle.

While in office, Theresa May’s Government signed up to the EU’s ‘circular economy’ directive. The idea of a circular economy is that we move away from a linear approach (make, use, dispose) and use resources more sustainably through re-use and recycling. The European directive required producers to pay 80% of the costs to dispose of their goods’ packaging. In the Resources & Waste strategy, the ‘polluter pays’ principle would see manufacturers taking responsibility for the full costs of disposing of the packaging they place in the market.

This tough stance on packaging is understandable. How many times have you opened a delivery and wondered why such a small item is wrapped up in so much packaging, or stopped to consider why your fruit and vegetables need to be shrink-wrapped? Packaging is key to achieving the UK’s overall environmental targets – both in domestic and commercial arenas – and it’s especially important for reducing plastic waste.

Sustainable packaging
For builders’ merchants, packaging is a big deal too. Too much packaging means more material to recycle on-site, while insufficient or ineffective packaging means damaged goods, returns and unhappy customers. So if suppliers need to find more sustainable packaging designs to meet future regulatory requirements, they will need to carefully balance their responsibility to the environment with the needs of their stockist customers.

Recognising the growing importance of resource-efficient packaging, Lakes recently invested significantly in redeveloping its packaging to minimise the amount of waste going to landfill. Our old packaging used internal polystyrene packing to prevent movement, plastic banding to keep the product secure, and stapling and plastic tape to secure the cardboard carton. With 150,000 products manufactured every year, there was significant cost and waste attached to this approach.

It also negatively affected our business. We discovered that the plastic banding was being used to pick up and move the boxes – a practice which was unsafe and also risked cutting the cartons and damaging the product.

So in March 2019, we became the first in the sector to introduce 100% recyclable packaging. We removed the plastic banding, stapling, plastic tape and polystyrene to reduce our waste to landfill by 75%. We added in handling slots to make the products more manoeuvrable. The new packaging has halved the number of damaged returns and improved transportation and stockholding, thanks to the smaller box sizes – all in addition to being kinder to the environment.

But best practice must be followed downstream if the packaging is to be truly sustainable. If our stockists and installer customers don’t have access to the facilities needed to recycle our boxes, we are exploring how we can close the circle by taking empty packaging returns – via a merchant – so we can recycle them ourselves.

We all need to act to make a difference, in our own lives and in our business activities, to ensure the world’s natural resources are protected for future generations. Lakes is a certified carbon neutral company and uses offsetting – such as the planting of trees – to balance the carbon emissions we generate through the course of manufacturing and transporting our products. The Environmental Bill will hopefully have more businesses thinking about what they can do to make small or big changes to their operations.

Sustainability is now as important as profitability, and the two can go hand-in-hand when environmental issues are considered as part of wider business objectives.

Builders’ Merchants’ sales in the first quarter of 2020 were knocked by the COVID-19 pandemic and Government measures to contain the virus.

Year-on-year

Total value sales in Q1 2020 (unadjusted for trading days) fell -6.7% compared with the same period in 2019, with all core product categories affected. Adjusted for trading days, total builders’ merchants’ value sales dropped -8.2%.

Tools (-12.7%) and Timber & Joinery Products (-11.1%) reported the biggest falls on an unadjusted basis. Plumbing, Heating & Electrical (-7.4%), Heavy Building Materials (-6.5%), Decorating (-5.1%) and Kitchens & Bathrooms (-4.1%) were also down. Perhaps not surprisingly, the one outstanding performance was in Workwear and Safetywear up +24.2%.

Quarter-on-quarter

Total value sales dropped marginally by -0.8% in Q1 2020 compared with Q4 2019. Most product categories reported lower value sales over the period, including Kitchens & Bathrooms (-2.4%). The exceptions were seasonal category landscaping (+7.6%), Workwear and Safetywear (+9.5%) and Renewables & Water Saving (+15.9%).

Index

The quarterly BMBI index for Total Builders Merchants was 105.6, with Workwear & Safetywear ahead of all categories at 129.1. The Index for Kitchens & Bathroom was 111.9.

Mike Tattam, Sales & Marketing Director and BMBI’s Expert for Shower Enclosures & Showering, comments:

“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.

“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.”

Each quarter, BMBI Experts speak exclusively for their markets, explaining trends, issues and opportunities. For the latest reports, Expert comments and Round Table debate videos, visit www.bmbi.co.uk.

Our Sales & Marketing Director and BMBI Expert for Shower Enclosures & Showering, Mike Tattam, recently took part in the Builders Merchant Building Index (BMBI) fourth Round Table Debate. The debate took place in December 2019, hosted at Geberit HQ in Warwick.

The BMBI is a brand of the Builders Merchants Federation (BMF) and the annual debate is organised for BMBI Experts to discuss topical issues, and the implications for our industry. Neil Lawrence, COO of Jewson, represented builders’ merchants and Mike Rigby, CEO of MRA Marketing (creators of BMBI) joined the BMBI Experts. The debate was chaired by Jennie Ward on behalf of Builders’ Merchants News (BMN).

Five main topics were covered:

1. The climate change agenda & environmental legislation
2. Economic confidence & Politics!
3. Changes in buyer behaviour and how we sell
4. Changing Regulations, changing building practices, changing priorities
5. Merchants and distribution – where next?

The debate will be reported in the January, February and March issues of BMN. It was videoed in full and each video topic will be uploaded to the BMBI website from February 2020.

Other BMBI Experts that took part included: Andy Simpson, Packed Products Director Hanson Cement; Derrick McFarland, Managing Director Keystone Lintels; John Duffin, Managing Director Keylite Roof Windows; Malcolm Gough, Group Sales & Marketing Director Talasey Group; Mike Beard, Merchant Development Director Encon Insulation; Nigel Cox, Managing Director Timbmet; John Coe, Commercial Director Alumasc Water Management Solutions (AWMS); Steven Heath, Technical & Strategy Director Knauf Insulation; Simon Taylor, Director of Sales Ibstock Brick and Jeff House, Head of External Affairs, Baxi Heating UK.

The BMBI is a reliable and up-to-date measure of Britain’s Repair Maintenance & Improvement (RMI) activity. The quarterly and monthly reports use GfK’s Builders Merchant Point of Sales Tracking Data, which analyses sales-out data from over 80% of generalist builders’ merchants’ sales across Great Britain.

The Experts speak exclusively for their markets, adding perspective and context to the data while also explaining trends, issues and opportunities.

Visit www.bmbi.co.uk to download the latest BMBI reports or learn more about each Expert. Follow @TheBMBI on Twitter.

During the inaugural Builders Merchants Federation (BMF) Kitchen & Bathroom Forum, our Sales & Marketing Director, Mike Tattam, presented on the importance of the showroom experience.

Focusing on what influences buyer behaviours, Mike confirmed showrooms are more important today than ever: “The internet has changed how most of us buy and influenced our expectations of service,” says Mike. “It’s easy and convenient to now buy most of what we need online, putting a strain on many bricks and mortar retailers. People thought online shopping would reduce the need for showrooms too. But when it comes to high ticket home improvement items like bathrooms, clicks haven’t replaced bricks.

“Consumers may start by researching online but before they decide they look for where they can go to see and touch the products, explore the options and have their questions answered by knowledgeable staff.”

In Mike’s view, showrooms give customers the confidence to buy and they will make their decision based on the whole experience: “It’s where merchants and stockists have a distinct competitive advantage so think about the showroom holistically so every feature enhances the experience and makes it easy for customers to decide,” empahsised Mike, “And think about solutions too. Customers will want to learn about a range of options that will suit their bathroom space, style and lives.”

Mike’s presentation also covered the how our senses – consciously or not – influence buyer behaviour: “Without instruction sight, sound, smell and touch will kick in as soon as we enter a showroom so first impressions count.”

Mike’s tips for creating a memorable and impactful showroom experience were to consider the following:

• Is your showroom clean & tidy?
• Does it have good lighting?
• Is it welcoming from the outside?
• Are the displays stimulating and well kept?
• Is the literature up-to-date and accessible?
• Do you offer seating and refreshments?

And when it comes to showering spaces specifically:

• Is the hardware polished and damage-free?
• Do the handles feel secure and comfortable in the hand?
• Do the doors close smoothly and quietly?
• Is the glass smear and scratch free?
• And not forgetting the floor! Is the tray robust? Anti-slip? Low threshold?
• Are accessibility products included?

Mike concluded: “Stockists who blow customers away with stunning displays, expert knowledge, and a great customer experience will be the winners in today’s omnichannel world.”

For information on how Lakes can help support your showroom sales, call 01684 853870

One thing you can’t get online 

In his refreshingly honest opinion piece in the June issue of KBB Review, Paul Crow wrote about how Ripples’ showrooms have changed to offer an inspirational shopping experience. We would certainly agree that stimulating displays, relaxing facilities and somewhere where you can talk to experts are all essential for capturing today’s discerning homeowner.

People thought for a while that online shopping might undermine the need for showrooms. Certainly, the high street has taken a hammering as consumers change the way they shop. But clicks haven’t replaced the need for bricks – in fact showrooms have become more important than ever. A homeowner looking for a new bathroom will most likely gather inspiration from a variety of places, ask friends’ advice, and then research different options online. But anyone who is about to spend thousands of pounds on a bathroom is going to want to experience how the products look and feel ‘in the flesh’.

Consumers want to check the tangible attributes of a product before committing to buy, including the size, material, and colour (which don’t always render well on screen). There is one other crucial reason too. No matter how good the photography or how compelling the descriptions, there is one thing about a product that’s virtually impossible to convey on a web page: quality. And today’s homeowner places a lot of emphasis on quality. They want to enhance their homes with stylish decor and accessories that look great and will last.

Quality is particularly important when it comes to showers because showering is about so much more than just getting clean – it’s a place to unwind and refresh, a time and space for you, a sanctuary from the world. It’s a holistic experience and every aspect of the environment has to be right. Attention is often drawn to the fixtures and fittings of a shower because the shiny hardware is eye-catching – but it’s the things you don’t immediately notice that make the difference in quality. For example, what is the shower tray like? Does it feel reassuringly solid or does it flex as you get in? Does the door wobble or clang when shut? Quality is a feeling, and it’s a feeling you only get from the whole experience.

A showering space is often made up of mostly glass, so how the glass looks is important. Homeowners may not have noticed that most glass has a greenish tinge to it, which affects the colour of tiles and paint, and how the rest of the bathroom looks through it. However, when they see a low-iron glass like Lakes’ PureVue^HD the difference is startling – and being able to see their bathroom in its true colours is another indication of quality.

Equally, the sense of sanctuary and wellbeing of a shower shouldn’t be marred by glass that is scratched or smeared with limescale or soap scum. That’s why Lakes Glass comes with AllClear^® as standard – a scratch resistant, stay-clean long-life coating technology that ensures water, limescale and soap scum slide off the glass – a simple wipe with a damp cloth keeps it looking beautiful. The design of our shower doors help with cleaning even further, as they can be unclipped from their runners to allow easy access to the whole space.

Even the simple act of stepping into the shower should exude a sense of luxury. The way a shower feels under foot has a bigger impact than you might expect on how we perceive the whole experience. Lakes’ stone resin shower trays for example are low profile, anti-slip, and anti-bacterial. They feel solid, safe, and look great. They have a natural quality look and feel, adding to the spa-at-home experience customers love.

When you have an appreciation of how important these factors are, it’s important to realise, as Mr Crow has, that the way products are presented can make the difference between making a sale or not. Is the glass and hardware clean? Scratch and damage-free? Are the designers knowledgeable? And do they engage in a two-way conversation so they know exactly what the buyers need?

From walking into the showroom, the setting, lighting and surrounding space, to reaching for the handle and opening the door, stepping onto the shower tray, and looking at or through the glass – the whole experience must feel quality. Do your showering spaces look right in the display space? Are they lit well? Your eyes are drawn to quality hardware and your hands instinctively reach for the handle. If it’s comfortable and solid in their hand with a pleasing shape it says quality. Make sure handles are fitted correctly so they feel sturdy. Check that doors close smoothly and quietly. If anything feels loose or ill-fitting, the customer may not say anything, but they’ll question the quality, whatever the price.

Think about the showering space holistically. Make sure every feature enhances the experience, and you’ll communicate the quality assurance today’s customers demand.

To find out how Lakes can help you make the most of your displays and showrooms and maximise sales, arrange a meeting with one of our Area Sales Managers. Find their details here.