Buildbase may be a general merchant but timber is very much in its DNA, says forest products director Andy Ferguson.
“In recent years timber sales have grown dramatically but we’re only at the start; we can take it a lot further,” he said.
Mr Ferguson joined Buildbase in 2014 when parent company the Grafton Group bought Beaumont Forest Products, which he had founded in 1986.
Beaumont had a reputation for “doing things differently” and it’s an ethos that Mr Ferguson has continued at Buildbase.
“We were always seeking timber solutions rather than just selling timber products,” he said.
Planed and treated carcassing may be the norm now but it was Beaumont that blazed the trail after Mr Ferguson saw eased edge material while on a trip to Sweden and was confident the British market would buy it.
“I remember going to Rochester to do a stock take and ours was the only planed treated wood on the quayside. Our business almost took off overnight on the strength of that decision,” he said.
The market’s ready uptake reinforced his view that price is not the key factor for customers. He believes they understand, and appreciate, value.
“There’s always been the thought that builders want the cheapest price but it’s a misconception. They want a fair price but price isn’t really the driver; they want a good product,” said Mr Ferguson.
“Price and cost are two different things. What’s the point in having 10 pieces of something you buy very cheaply and you can’t use half of it. You’ve doubled the price.
You might as well pay a little bit more and get something you can use completely.”
One solution is engineered timber, and Mr Ferguson is a big advocate, whether it’s laminated timber for windowboards or finger-jointing to produce stable pieces of timber in the lengths customers want.
“It’s what they do in Europe but we’ve been a bit slow on the uptake in the UK. We need to change,” he said.
Part of the problem, he believes, has been a lack of confidence by the timber industry and merchants to sell these products and a lack of belief that customers will buy them.
“A lot of staff will hide because they don’t want to have a conversation with builders about timber’s technical qualities. That almost led to people using other products. The industry has also been guilty of not offering the right products at times,” said Mr Ferguson. It is something he is addressing at Buildbase.
The company’s Talking Timber campaign was launched in 2015 to engage branch managers and educate staff about timber.
Since the start of the campaign, more than 300 people have undergone training through Metsä Wood’s online academy and there is now a structured development programme for those who want a career in timber with Buildbase.
“Training and success go hand in hand,” said Mr Ferguson.
Under the campaign, branch managers have engaged more closely with Buildbase’s suppliers – L&G Forest Products, Metsä Wood, BSW and Norbord – and reviewed how and where their timber is displayed. Since one branch enrolled staff in the online academy and relocated its racking, it has increased timber sales by 93%.
Buildbase has also introduced a timber help desk for branch teams.
All these developments have helped staff gain confidence in selling timber.
“It’s a technical sell and we have to be very sure of what we do, of getting it right for our customers. Our staff are generalists but they now have confidence in dealing with timber,” said Mr Ferguson.
Staff have also appreciated the example set by Mr Ferguson and forest products development manager Keith Fryer, a former co-director of T Brewer which Buildbase acquired in 2016.
“I’m on the TRADA board and Keith is Timber Trade Federation past president and that gives a bit of weight. They see we’ve come from a background of doing things the right way,” said Mr Ferguson.
Commitment to Timber
And their two roles reflect Buildbase’s commitment to timber. Prior to Mr Ferguson’s appointment timber was the responsibility of a category director in procurement.
“We work as a team; he gets the best quality products to where we need them to be, at the best price. My role is to make sure that the products arrive in the best lengths and pack sizes to suit that branch, in that region. If we get it right for our branch teams they repay us with great sales,” said Mr Ferguson.
Buildbase has grown through acquisitions and retains some of an independent’s mentality. Each branch operates under the Buildbase banner but they have room to make decisions for their branch and region.
The company is just about to roll out a system where branches are categorised according to their size, location and customer base. Each category will have a stock guide to choose from.
The guide also identifies five steps for branches to increase timber sales and margins – knowledge, availability, range, engagement and quality – but there’s no mention of price.
“Price is low on our priorities. Let’s get everything else right first,” said Mr Ferguson. Buildbase’s core timber products are carcassing, plywood, PSEs, MDF mouldings and sheet materials. Imported and Britishgrown timber have fairly even share of overall supply. At present it doesn’t stock decorative products but this could be considered in future.
“We’re only at the outset. We’re creating the brand and can then add the differentiating products. That’s part of our future strategy,” said Mr Ferguson. “We’ve worked very hard at getting the basics right – the core stock and the knowledge – and then we can begin to add new products.”
Timber is a high focus category for Buildbase because it produces “great sales and great margins” and it is very much a part of the company’s DNA now. The company’s strategy is to develop timber sales further.
The only barrier to that is not the changing dynamics of the traditional supply chain but the failure to continue to adapt, said Mr Ferguson.
“More timber is being used but in different ways and that’s what we all have to get used to. Merchants used to sell floor joists and roof timbers but now there are cassettes and roof trusses, and more engineered products. It’s what makes the industry so exciting,” he said.
“There’s nothing wrong with changing the way we do things. If it’s for the better of the customer it will sustain our product and guarantee that people will continue to use it.”
