In the viewpoint column of PBM’s November edition, editor Paul Davies considers the findings of a number of recent customer research projects and the implications for the merchant sector…
With the market remaining in somewhat of a holding pattern at best, attention will soon turn to the government’s Autumn Budget, scheduled for November 26th. Given recent precedent, the sector will doubtless be braced for another challenging outcome, but I suppose we can retain some hope for a more merchant-friendly pronouncement from the Chancellor… Hmm.
We’ll cross that bridge when we come to it, but in the meantime, it has been fascinating to look at the findings of two in-depth customer research initiatives from a pair of the country’s largest merchant groups.
Firstly, City Plumbing’s Taking the Temperature report shows how plumbers and heating installers are stepping up to meet the demand for low-carbon heating. Nationwide, the plumbing and heating specialist’s findings show that 58% of professionals have already trained or upskilled in heat pumps, with a further 34% planning to do so within the next 12 months. Only 8% say they have not been trained and do not plan to do so.
Whilst regional disparities were in evidence in terms of training uptake and other barriers to entry remain, confidence in the heat pump market is shown to be growing overall, with installers noting expected customer demand (37%), the chance to gain a competitive advantage (34%) and personal interest in renewable technologies (38%) as key motivators for training.
Citing the firm’s installer training initiatives such as its partnership with GTEC Training, two centres of excellence and mobile training rigs, Hemal Morjaria, MD – Heating & Renewables, said: “It’s important that we continue to support installers — especially sole traders and small businesses — with affordable and accessible training to future-proof the industry, which plays an essential part in the UK’s net zero ambitions.”
“Whilst we’re highlighting the renewables and sustainability angle here, the key point is a wider one — namely, that customers increasingly require their merchant(s) of choice to be so much more than just a purveyor of products.”
Jewson’s annual Trade Trends report, meanwhile, reveals that more than half (54%) of builders and tradespeople are winning more work “by offering services linked to sustainability” as it moves from “being a niche market into a mainstream business driver as more homeowners look for sustainable solutions.”
Its research also investigated trade awareness of the impending Future Homes Standard legislation, designed to ensure that newbuild homes in England will produce 75%-80% fewer carbon emissions than those built under current regulations. The official rollout of the FHS has been subject to delays, but recognition is growing in the market with almost a third (32%) aware of its introduction, up from less than a quarter last year.
Sabrina Passley, Head of Sustainability for Jewson’s parent company STARK UK, commented: “The data in our report highlights a sentiment that tradespeople understand a change is coming, but they’re unsure how to navigate it. Our role is to help bridge that gap, by making compliance simpler, offering practical product solutions and supporting upskilling through our Sustainability Centres, expert advice in-branch and supplier training.”
Whilst we’re highlighting the renewables and sustainability angle here, the key point is a wider one — namely, that customers increasingly require their merchant(s) of choice to be so much more than just a purveyor of products. Granted, this has always been an intrinsic part of the merchant’s role, but supporting customers with the best advice, knowledge and insight has perhaps never been more crucial in an era of changing legislative demand and the wider uptake of new technologies.
Indeed, this reflects the findings of a further research project, co-sponsored by the BMF in tandem with L.E.K. Consulting and authored by industry expert Steve Collinge, which is “designed to set new standards for the trade customer experience for the next decade.”
Entitled The Builders Merchant Branch of the Future, the report provides “actionable insights” for merchants of all sizes across seven strategic pillars, revealing that “today’s trade customers expect more than just products; they seek a seamless, efficient experience that saves time, provides choice, and reflects modern standards of service and sustainability.”
Simply put, delivering or facilitating training and serving as an efficient information hub that can cut through the noise of the modern construction marketplace will be a vital differentiator for the sector at large.
