Marketing to Builders Merchants

Since the last update, there have been many changes in the sector, including mergers, acquisitions and buy-outs. Readers will have noticed many of these in the trade press, including notable reports such as:

• Stark Group Takes Over Saint-Gobain’s Distribution Businesses in the UK
• Stark Group Completes Major Acquisition in the UK including Jewson, Gibbs & Dandy, and JP Corry.
• Jewson launches hub to support housing associations
• Smith Brothers Continues Expansion
• Bradfords Building Supplies Joins PHG Buying Group (see Buying Groups below)
• Covers expands with NYEs Building Supplies acquisition
• IBMG acquires Kent Blaxill’s builders’ merchant operations
• Lords Acquires Alloway Timber and Builders Merchants
• IBMG acquires MS Roofing Supplies

This latest edition of our Builders’ Merchant Database reflects these and many other changes, including contact names, business cessations, address changes, etc. New entries have been introduced, where appropriate. All the firms which appear in the latest (April 2023) Top 20 league table published by Professional Builders Merchant and those in the Builders Merchants Journal League Table (January 2023) have been included and notated accordingly.

In addition to the contact name, the information for each entry also includes the number of branches for each firm, the primary activity (i.e. heavyside, lightside, timber, etc.), address, telephone number, website and email address (over 74% are name-specific to buyer, the remainder being generic - info@, etc.). We have also included the social media links (where possible) for LinkedIn, Twitter and Facebook.

The Market

Recent industry research indicates that builders’ merchants account for some 8.5% of the UK’s construction output and they, together with their suppliers, contribute over £40bn to the UK economy every year. Consolidation in the sector has resulted in the major groups making up 72% of the market (source: AMA Research).

Overall, the merchants offer an extensive range, dominated by traditional building products. Plumbing and drainage account for around 17%, and heating and ventilation for around 15%, with other product sectors commanding smaller shares. Buying groups (see below) continue to play an important role in the market, not least because it remains highly price-sensitive affected by product availability, raw material and fuel costs.

In February 2023, the Builders’ Merchant Building Index (BMBI) published data for the previous year, and found that total merchant sales for 2022 finished +6.9% higher than the figure for 2021. In terms of the individual product categories, only two, Landscaping and Timber/Joinery, experienced decreases in sales (-0.6% and 2.2%%, respectively). All other categories enjoyed growth, led by Renewables and Water Saving (+31.5%), followed by Kitchens and Bathrooms (+18.9%) and Plumbing, Heating & Electrical (+14.8%). Year-on-year increases were seen in other categories, including Heavy Building Materials (+11.6%), Decorating (+11.2%), Workwear & Safetywear (+11.2), Miscellaneous (+8.4%), Ironmongery (+8.0%), Services (+7.6%), and Tools (+4.9%).

The BMBI monthly and quarterly data provides accurate and comprehensive information on the market’s trends. The headlines for BMBI’s quarterly reports provide a very good snapshot on the current state of the sector:

• Q2 2023: Q2 value sales up +7.6% on Q1, with volume up +11.3% and prices down -3.3%
• Q1 2023: Q1 2023 sales drop -2.3% as volumes tumble -16.4%
• Q4 2022: Nominal uplift in Q4 2022 sales, but inflation still drives growth
• Q3 2022: Q3 2022 grows year-on-year, but inflation drives increase amid falling volumes

The BMBI is a brand of the Builders Merchant Federation (BMF), launched and managed by MRA Marketing. It provides sales comparisons for the key individual product groups, such as Heavy Building Materials, Ironmongery, Plumbing, Heating & Electrical, Kitchens & Bathrooms, etc. Separate to this, the Builders Merchants Federation (BMF) publishes annual Merchant Industry Forecasts to help those involved in building materials supply to plan for the future. It is available free of charge to members and can be purchased by non-members.

The BMF is the main trade association representing builders’ merchants and their suppliers in the UK and Ireland. According to the most recent Annual Review, current membership comprises 860 merchant, suppliers and associates. These companies had combined sales of £45bn and employed over 232,000 people in the building materials industry. The BMF’s 437 merchant members operate from over 5,600 branches across the UK and Ireland.

Marketing

Builders’ merchants represent a major target audience for construction product suppliers. In its 2022 Construction Manufacturers Marketing Report, NBS found that merchants/distributors were ranked the third most important audience after specifiers and contractors.

Needless to say, one of the greatest influences on the merchant sector’s product selection and purchasing choices is client demand, so generating interest amongst the trades which use merchants is highly important and it is worth a brief digression.

Online product research and selection by tradespeople has been increasing over many years (the Covid-19 pandemic accelerated this). In 2020, international research firm L.E.K. Consulting published the results of its survey of UK contractors and trades people, which demonstrated that “…. digital channels were already becoming ubiquitous for researching, comparing products and ordering across building product categories.” The commentary for the survey posits that “….. for product manufacturers, this is a significant development. No longer can they afford to rely on traditional relationships with builder’s merchants, specialist distributors and DIY stores. Now, ecommerce leaders, such as Screwfix and even Amazon, present real alternatives to physical stores ….” The survey’s findings included:

• 80% of building contractors and tradespeople regularly using smartphones for work, checking prices and availability, gathering product information and assessing product quality.
• A key use of the technology is online research before placing an order.
• For planned purchases of heavy materials, the most common research activities are gathering product information (69%) and comparing prices (54%)
• Contractors and tradespeople are less likely to gather product information before planned purchases of light materials, given the frequent nature of purchases and familiar suppliers. However, they are more likely to compare prices online (around 65% do so for light materials).

The full results of the survey and L.E.K. Consulting’s commentary and analysis provides some valuable insights for product manufacturers and suppliers, suggesting ‘Five steps to gain value from digital disruption’. Visit the L.E.K website here.

In 2019, a year before the L.E.K. survey, the construction marketing agency, CIB, surveyed over 800 building tradespeople about a range of topics. These included where they buy materials, how they find out about new products, i.e. usage of trade magazines and websites, etc. National merchants and wholesalers were found to be the most common place for builders, plumbers, electricians and plasterers to buy materials: the full commentary on the results provides details and is a worthwhile read for those marketing to the sector. Interestingly, when it came to finding out about new products, the survey found that “… there is not one source that is significantly more important than others. Tradespeople get new product information from a mix of different sources with trade press, merchants’ staff, web research, social media and recommendations from friends or colleagues all scoring similarly.”

Whilst across all the trades surveyed some 44% said that they find out about new products from merchant staff, it was clear that trade publications also play a significant role.

Journals, Product Directories & Other Media

Key in-print and digital journals covering the sector include Builders’ Merchants News, Professional Builders Merchant, and Builders Merchants Journal, all of which offer a range of advertising options, some of which are highlighted below. These journals will include owners, directors, purchasing and branch managers in their readerships and are included in our downloadable index of 330+ UK construction industry journals, which, apart from identifying other relevant titles, includes media data, such as circulation, readership profiles, sales contacts, etc. In order to support the PR activities of our clients, the index also gives named editorial contacts at each of the journals, including editorial-specific email addresses for each.

Professional Builders Merchant (PBM) also offers a dedicated 8-page advertorial supplement to give companies the opportunity to communicate to an audience of key merchant personnel. The supplements are designed and professionally edited by PBM’s in-house editorial team. Another service available to suppliers is inclusion in its weekly e-newsletter, which is sent to 6,000+ merchants – a solus option is also available. A sponsored social media post service is also offered.

As well as advertising in its regular e-newsletter, Builders Merchants Journal (BMJ) also offers solus e-mails, as well as publishing the annual BMJ Supplier Directory.

Builders’ Merchants News (BMN) also publishes a weekly e-newsletter, which includes advertising options and an annual wall planner (also with advertising options), which is circulated to individual merchant branches across the UK. In partnership with the Builders’ Merchants Federation, an annual ‘Top 100 Supplier Influencers’ listing is produced to recognise excellence in individuals who work for construction product manufacturers supplying the merchant sector. The annual souvenir brochure published to accompany this offers a limited number of sponsorship / advertising opportunities.

The Builders’ Merchant Federation publishes two magazines, One Voice and P&H Voice: these are circulated to BMF members quarterly and half-yearly, respectively, and both offer advertising options.

In terms of product directories, our dedicated feature provides a comprehensive index, but it is worth highlighting the National Merchant Buying Society’s own Buyers’ Guide, which is used by merchant buyers and branch managers.

Builders Merchant ‘Omnibus’ Research
For construction industry manufacturers and suppliers seeking to develop new markets, comprehensive research is vital and our Construction Market Research feature provides access to a comprehensive index of specialist construction research agencies. However, for suppliers looking for smaller research insights, one of those research agencies, MRA Research, provides Builders’ Merchants Omnibus Surveys for those companies who want quick, cost-effective research to improve their marketing.

The Survey is an insight tool for suppliers and companies working in the builders’ merchants sector. Businesses marketing or selling to builders’ merchants, and through them to their trade and retail customers, can buy questions. These questions can be anything suppliers need to know about – products or services, a campaign, brands, their own performance, support, attitudes or perceptions, merchants’ customers, or a topic or issue critical to the industry. Questions can range from simple yes or no, to complicated scaling questions, or open-ended verbatims. Questions can be asked on behalf of a named brand or unnamed supplier. The research also allows suppliers to buy as few or as many questions as they want, with a perfectly weighted nationally representative sample of builders’ merchants, by size, type, national or independents, and region. In as little as two weeks, companies can have the answers and analysis they need to inform a sales decision, support a buying group pitch, or just improve the effectiveness of their marketing (details here). 

Selling Into Merchants – Training Course

As their supplier members will be aware, the BMF regularly runs an interactive workshop to help suppliers understand the merchant structure, the difference between independent and national merchants. Part of the course looks at how to approach different merchant types and how buying groups affect the buying process. You will learn how to overcome common objections and who within a merchant to engage with to improve sales opportunities.

For full details of the course’s content, click here.

Exhibitions and Awards

There are over 180 construction exhibitions detailed in our UK Construction Exhibition Calendar, but it is worth highlighting the Jewson Live event (next edition 24^th April 2024), the National Painting and Decorating Show (19-20 November 2024), and also the National Merchant Buying Society's Annual Exhibition (10^th April 2024) which is a dedicated and key event in the independent merchant buyer's calendar. There are also the Professional Builder Tool Fairs (regional events throughout the year) and Screwfix Live (2024 dates yet to be announced at time of publication).

The Builders’ Merchants Federation hosts an annual Conference and Awards event. The conference has an exhibition area for suppliers and sponsorship opportunities are available for the awards (details here).

The sector also has a number of other awards offering suppliers promotional opportunities through sponsorship. These include the Builders Merchants Awards and the BMJ Industry Awards. Our comprehensive list of industry awards ceremonies which offer sponsorship opportunities can be viewed separately here. 

Merchants’ Product Data Template
In a major step towards product data standardisation across the building materials industry, the Builders Merchants Federation (BMF) launched a universal product data template which can be used by all manufacturers and merchants.

Product data standardisation is the key to removing inefficiencies in transferring information across the building materials supply chain. The BMF’s product data template has been specifically designed to help members eliminate the problem of inconsistent data content and format requests, thus saving both time, effort and cost, and the BMF has a target of 85% adoption across the supply chain by the end of 2024. The template is available free of charge for members to download from the BMF website (details here). 

Merchant Buying Groups Index
Independent builders’ merchants are often members of buying groups or consortiums, which offer them commercial advantages. The following are such groups:

Allied Merchants Buying Association (Ireland)
Email: info@alliedmerchants.ie
Web: http://alliedmerchantsireland.com/
Contact name: Keith Giblin, Chief Executive Officer
Notes: Merchant buying group in the Republic of Ireland with 22 members comprising 193 branches.

AWEBB – The Electrical Network
Tel: +44 (0) 29 2240 2443
Email: info@awebb.org.uk
Web: https://awebb.org.uk
Contact name: Mark Lambert Chief Executive Officer
Notes: Electrical products purchasing consortium with over 200 branches across the UK and Ireland

Fegime UK
Tel: +44 (0) 1455 556822
Email: via website
Web: http://fegime.co.uk/
Contact name: Alan Reynolds, Chief Executive Officer
Notes: Electrical wholesalers & distributors across UK (also Europe). Also publish comprehensive ‘Electrical Product Guide’.

FORTIS Merchants Ltd
Email: via website
Web: https://www.fortismerchants.co.uk/
Contact name: Will O'Meara, Director of Operations
Notes: Member Firms: 39 member companies across the UK (approx 450 branches).

H&B Group
Tel: +44 (0) 1923 677724
Email: martin.mansfield@handbgroup.com
Web: https://www.handbgroup.com/
Contact name:, Peter Fletcher, CEO.
Notes: Membership comprises independent builders’ merchants accounting for over 300 merchant branches across England, Scotland, Wales and the Channel Islands. Also publish a digital ‘Buying Directory’.

The IPG – (Independent Plumbing Group)
Tel: +44 (0) 1903 771699
Email: Via website
Web: https://www.the-ipg.co.uk/
Contact name: Andy Cottee, Managing Director
Notes: IPG is a group for local, independent bathroom showrooms and plumbing and heating merchants. Membership comprises over 200 plumbing, heating, and bathroom stores nationwide.

IBC - Independent Buying Consortium
Tel: +44 (0) 20 3195 7957
Email: Via website
Web: https://www.ibcbuyinggroup.com/suppliers-2-2/
Contact name: Paul Read, Managing Director
Notes: Comprises more than 200 members across the UK. Offers services to help supplier members gain brand recognition, including: Inclusion and links from IBC website, distribution of point-of-sale material, networking opportunities, joint marketing campaigns, and merchant visits.

National Buying Group
Email: Via website
Web: https://www.nationalbuyinggroup.com/
Contact name: Nick Oates, Managing Director
Notes: Comprising over 100 members accounting for 415+ branches. Supplier members can attend the NBG annual conference.

National Merchant Buying Society (NMBS)
Tel: +44 (0) 116 253 0531
Email: martin.mansfield@handbgroup.com
Web: https://www.nmbs.co.uk/
Contact name: Andy Hextall, Commercial Director
Notes: Comprising more than 1150 members, the NMBS is the UK’s largest buying group for independent builders, plumbing and heating, timber, and hardware merchants. It operates the annual NMBS exhibition (see above). In 2021, NMBS announced the launch of its Product Information Management system as part of its OnePlace B2B trading platform which allows suppliers to upload data for their whole product range in one central location. Merchants can then view this data on the platform to help research and choose which products to stock, as well as to fulfil their own customer orders. Details may be found here.

PHG Plumbing Heating Group
Email: Via website
Web: https://www.phg.uk.com/
Notes: Specialist plumbing, heating and bathroom buying group with 15 members accounting for 300 branches and showrooms.

SMG (for flooring)
Tel: +44 (0) 118 932 3832
Email: info@smg-group.co.uk
Web: https://www.smg-group.co.uk/
Notes: 320 members.

Topline Group (Ireland)
Tel: +353 (0) 45 876 406
Email: info@topline.ie
Web: https://toplinegroup.ie
Contact name: Fergal McKeown, Buying Director
Notes: Leading DIY/ building materials buying group in Ireland, with over 90 affiliated members operating more than 160 branches.

Troy UK Ltd
Tel: +44 (0) 808 169 7698
Contact name: Jim Chadwick, Buying Group Director
Email: webstoreenquiries@troyuk.co.uk
Web: www.troyuk.co.uk
Notes: Specialist buying group covering engineering products, tools, fasteners etc.