The impact of the Covid 19 pandemic has created a cascading effect all over the world. Corona virus’s unprecedented impact affecting everything irrespective of small or big businesses. This has forced all the countries to maintain social distancing by implementing lockdown. Due to this effect, the economic crisis is crippling and has hampered most of the industries in the world.
The main objective for implementing lockdown was to control the widespread of this disease which was creating a catastrophic effect all over the population. Who had imagined that something like covid 19 would have impulsively disembarked globally and virtually knock out the construction industry? Building projects of all sizes were closed or paused, the supply chain and Builders’ merchants have been forced to close their doors due to pandemic covid 19.
Significance of Builders’ Merchants
The builder merchants play an important role in the construction worker’s toolkit. Builders merchants near me bring projects to life from DIY bathroom renovations to large scale commercial constructions. They are providing working capital for contracting builders merchant company.
In March 2020, after the Government had announced lockdown, with temporary closure of many commercial outlets. The Builders Merchants Federation (BMF) received a clarification that Builders Merchants play a vital and essential role in the construction supply chain. During and even at the time of crisis they provided indispensable support to the construction industry.
A small number of business were still able to operate safely to deliver essential works to clinics, hospitals, prisons, public housing, transport, factories, and other key sectors who were helping to fight pandemic. Builders’ merchant industry includes all products and materials used by construction companies, trades people, almost every individual person on the street. They are the suppliers of plumbers, builders, contractors, electricians,
Important Role of Builders Merchants
- They deliver construction, material, equipment, tools, and products to project owners.
- They handle payments and process the orders, most contractors contact nearest builders’ merchants, within their proximity as long as they provide standard services.
- They help in transportation of goods to warehouses. They must keep an eye on the materials on the site, to prevent theft and wastage, and safeguard them from extreme weather conditions.
- They provide advice and help to customers to choose adequate materials, rather than substandard and irrelevant ones. This will automatically save their money.
- They give information how to manage a construction project and inform clients about various nuances that they should know about.
How Covid 19 Pandemic Affected Builders’ Merchants
Though having been classed as ‘essential’ by the government, Builders merchants are leading to fight and protect their staff and even customers during the current coronavirus lockdown.
The supply chain that works closely with the local builders merchants had negative impacts tormenting the merchant industry to cutdown on expenses. Multiple delivery companies had shifted to deliver PPE, medicine, food, water, and other emergency supplies.
Many types of research were carried out, how the Builder’s Merchants are coping with the Covid 19 pandemic.
According to the report of Builders Merchants Building Index (BMBI) When government enforced lockdown in March, however in April there was a full-fledged lockdown, due to this merchants and tradespeople had temporarily closed their services.
Year-On-Year
All the categories saw an immense drop, with workwear and safety wear least affected. Total builders’ merchants value sales to builders and contractors in April were down to 76.3 % with April 2019.
Month-On-Month
Total merchant sales in April were 72.1% below March 2020. All the categories were severely affected with services and landscaping.
Sales in the first four years of 2020 were 25.2% lower than in January to April. Workwear and safety wear experienced significant uplift in March, due to the strong demand for protective equipment.
What Measures Can Be Taken to Enhance the Market
Technology is pushing Builders’ merchant sector to new heights, so that the builder’s merchant company can leverage technology to increase their business gaols.
- By using more streamlined inventory management to outsource their tax and accounting services to Builders’ Merchant company, with no hassle and less impact on their productivity.
- Point of sale hardware and soft ware systems, to manage inventory and improve customer experience during check out process.
- Online trading with presence of strong e-commerce, through click and collect, contactless payments, curb side pick-up.
Due to lockdown and decreased store visits, Builders’ Merchants have planned activities strategically, by adhering and adapting social distancing rules, by keeping both staff and customers safe. By taking some practical steps by the local builders’ merchants in-store.
- Issue appropriate PPE to staff members.
- Washing and cleaning regularly touched surfaces.
- Put up posters, informing about the rules during this time of pandemic.
- Implement one-way system, install sanitiser stations and maintain 20metre distancing rule.
- Install Perspex screens at order desks and keep your back-office staff safer.
Careful Perseverance
Now there is a beginning for gradual return to work, while maintaining heightened safe working practices.
According to latest Builders’ Merchants Building Index (BMBI) report published in March, shows value of builders, roofers and contractors in January were 3.7% lower than January 2020, when country went into third lockdown.
Three groups had higher sales in January this year: timber and joinery products, landscaping, and workwear and safety wear.
Month-on-month
The total merchants January sales were 20.6% higher than in December. Sales over 12 months to January show 10.8% lower than previous 12 months. Sales in most categories remain lower than before the pandemic except landscaping.
Despite experiencing improving trends, still things are not the same as they were before. Builders Merchants should take interest to leverage technology for the benefit of their businesses to compete in global marketplace. At least there is some activity for Builders merchants and builders merchant company. They should the seize the opportunity, adapt, and win more customers in this post-crisis world and move forward.