Pat Rice, Commercial Director of hardware manufacturer UAP, discusses some of the key trends from 2021 and considers what lies ahead for the sector in 2022.
This time last year, all the talk was about adjusting to the ‘new normal’ as the construction sector braced itself for continued uncertainty in 2021. It’s clear now that the goal should never have been adapting to a ‘new’ normal. Instead, we needed to make operational adjustments to help us achieve a return to ‘old normal+’… That is, business as usual but with the added benefits of embracing the lessons we have learned during the pandemic.
Supply chain challenges
For UAP, those lessons began right at the beginning of COVID-19, or indeed, during the prologue. Accepting weeks before the UK lockdown that the issue would be global and the impact on supply chains would be immense, we invested in manufacturing products ahead of time and increased stockholding capacity so that we could continue to fulfil orders and offer customers plenty of choice.
As the situation has evolved, companies across the delivery chain have continued to battle with supply challenges. It’s an issue that has followed the industry throughout 2021 and looks set to continue in 2022. And, of course, because demand is outstripping supply for so many commodities – including the transport needed to get them from A to B – price rises are inherently linked to supply chain shortages too.
As with any business challenge, the only way to address supply chain issue is to acknowledge them and develop a strategy to counter the difficulties. At UAP, we began 2021 from a position of strength with high levels of stock in the UK and a steady stream of product in the pipeline for manufacture and transport. Over the past year, we have invested in our warehousing and logistics systems to translate our stockholding advantages into efficient order picking and short lead times, helping both builders’ merchants and contractors to access the products they need with reliability and accountability.
Customer-focused
Choice and flexibility have been important and will continue to play a key role in serving customers in 2022. With so many projects playing catch-up and the continued trend of people investing in home improvements, high levels of demand look set to remain, so there is a need to be able to offer alternatives and ask the right questions about what the customer really needs.
Understanding the customer’s needs is embedded in our culture at UAP, through market insight, feedback from our sales team and our annual customer survey (see panel below). We use that knowledge to approach our operational management with a continuous improvement mind-set, and to drive product development.
The uncertainty of the pandemic has prompted some manufacturers in the construction sector to hold back on R&D investment as they wait and see how the market fairs and what new trends will arise from the pandemic. For us, it has been very clear that one of the outcomes of the pandemic is people’s focus on feeling safe, comfortable and secure in their own homes.
As a result, our focus on safety and security innovation, with products like the recently launched Kinetica+ K4 3* cylinder from our Fullex range, has been more important than ever over the past year, and is driving our R&D investment for 2022 and beyond too. The Kinetica+ K4 not only combines an array of security features to make it virtually impossible to break-in, it also comes with a Bio+ key, which is impregnated with an anti-viral and anti-bacterial agent to safeguard against infection. It seems likely, that the new consciousness about our health and wellbeing will prompt further innovation of this kind for people-focused products.
Another key feature of Kinetica+ K4 which we see as an example of a continuing trend in 2022 is ease of installation. Time pressures, squeezed margins and rising labour costs all mean that contractors are looking for user-friendly products that are faster and simpler to install.
For builders’ merchants, the cost savings a contractor can achieve from faster installation provide an opportunity to upsell or offer an alternative product, which can both aid revenue and overcome supply chain issues.
Escalating trends
Some of the trends we have seen emerge over the past year have been escalated rather than prompted by the pandemic and will affect both the products we see coming to market and behavioural change in the industry in 2022 and beyond. The use of technology is one of those trends, thanks to the way tech-resistant consumers have been forced to embrace the use of apps and online systems during lockdowns.
There is now a much wider and more enthusiastic acceptance that tech can enhance lifestyles and this is driving demand in both domestic and commercial construction and refurbishment settings. It’s a trend that has led to the development of the smart door hardware from our Intelligent Hardware brand and our new range of electronic locks. Looking ahead, we can see real opportunities to tap into tech-enabled products and address operational challenges with digital systems.
Finally, a look at what we’ve learned and where the market will go next would not be complete without noting the growing importance of environmental considerations. It is clear that both public awareness and increased compliance will drive more eco-conscious purchasing decisions.
For companies like UAP in the hardware sector, that means considering how we package products to minimise waste. We’ve invested in packaging equipment that enables us to use marine reclaim and biodegradable materials, enabling us to be virgin-plastics free. Looking ahead, we are continuing to examine how we can reduce our emissions, as well as offsetting with our tree planting programme – 50,000 at the last count!
Embracing opportunities
The construction industry ended 2020 with the hope that the turmoil of the pandemic would all be a distant memory by the end of 2021, and here we are, as 2022 begins, still braced for uncertainty. But what we’ve learned is an important part of our toolkit and top of the list is that embracing opportunities is just as important as responding to the challenges.
For more information, visit uapcorporate.com
UAP scores highly for customer service excellence
Locks and hardware for doors and windows specialist UAP has been scored as ‘excellent’ or ‘very good’ by 85% of customers in its latest customer satisfaction survey, across multiple criteria including quality and accuracy of order fulfilment.
Carried out annually, the customer survey is just one of the tools that UAP uses for customer engagement, and it plays a pivotal role in the company’s growth strategy. The survey enables the business to build feedback into its continuous improvement programme, highlighting areas for investment and allowing the leadership team to review the success of previous initiatives.
Mandy Ferguson, Customer Experience Manager at UAP, said: “The customer experience is very important to us and guides product development, operational excellence and service delivery so we’re delighted by these scores. There’s always room for improvement, however, and we’ll use the feedback to drive continuous progress across all areas of the business.”
Customer feedback has been instrumental in guiding UAP’s product development and service provision over the past 25 years. For example, feedback in previous customer surveys led UAP to increase its inventory levels, leading to investment in new warehousing, £9 million in stockholding and new warehousing systems to aid supply chain reliability and reduced lead times.
Mandy added: “We are constantly investing in new product development and operational efficiency. After 25 years in business, we have an enviable understanding of the market but we are always learning and insights from our customers play an important role in that process.”
