In the September edition of PBM, editor Paul Davies considered the potential lasting impact of the changes accelerated by the coronavirus crisis.
Is it overstating things to say that we are standing on the edge of a revolution? The Covid-19 impact has fundamentally altered society since lockdown measures were introduced towards the end of March but the question is, will this be a far-reaching, lasting transformation or will we just edge back to what was unquestioned back in spring — even if this takes months or even years?
Many (most?) business models have certainly witnessed a technologically-fuelled, rapid reinvention. Changes that were either considered a project for the long-term or simply incompatible with the needs or structure of an organisation have been brought about almost overnight. Would you ‘go back’?
Indeed, the last six months or so have been something of a ‘live fire exercise’ for the country (and indeed, much of the world). Take the example of working from home, which has been a revelation for many — individuals and businesses alike — and has put a spotlight on established practices that have been automatic for decades.
For employees, a far better work/life balance can be struck by eliminating an often lengthy commute — potentially enabling huge cost savings and, crucially, freeing up precious time. For businesses, overheads can be radically reduced whilst numerous studies argue that home working has facilitated significant productivity increases. Many firms have stated they will retain WFH, at least to an extent, for the long term.
Of course, working from home is a great example of how much ‘disparity’ there is to our experiences of Covid Britain. Productivity gains for ‘desk-based’ companies won’t support the sandwich shop near the office or the viability of the building’s commercial landlord. Toiling away alone at your kitchen table is purgatory for some and simply not an option at all for vast swathes of the economy — not least the majority of those in merchanting and the wider building trade. Then there are those most devastated by the pandemic, such as hospitality, travel and retail.
The long-term impact on accepted norms of spending and taxation will be seismic. An innovative and more balanced strategy is clearly required for the post-Covid future.
For the building and construction sector specifically, there are huge opportunities ahead. Further government pronouncements continue to place the industry at the heart of the recovery. Though not without controversy, the ‘Planning for the Future’ White Paper promises a radical overhaul of the system to encourage more development, whilst more detail on the Green Homes Grant scheme includes the welcome news that it will work in harness with the existing supply chain. Hopefully this will ensure that many of the failings of its doomed Green Deal forerunner will be avoided.
Such measures alone will not resolve the sector’s challenges, deep-set and pandemic-heightened alike. A skills shortage — both on the tools and behind the counter — has to be resolved; merchants being able to support the growing use of MMCs is perhaps the other side of the same coin. More broadly, ecommerce is both an opportunity for those adapting to the technology and a greater threat as more ‘pure-play’ brands and even suppliers directly target the market.
These are transformational times and, for many, the upheaval since March has been unrelenting. Yet we are also being presented with an enticing choice. If you were to design a purpose-built business for the 21st century economy, what would it look like?
“In terms of business transformation, the last six months have been something of a ‘live fire exercise’ for the country.”
Please note, as events are changing at such a rapid pace, it should be noted this column was written on August 7. Click here to see all the latest updates on the PBM website.
