It is almost a year since Puhos Board UK Ltd was created by Finland’s leading chipboard manufacturer to develop its presence in the market.
Puhos had already been a major flooring supplier to this country for over 25 years, with its products marketed as part of the UPM-Kymmene Wood portfolio, but the new company’s brief was to bring a greater focus to the market, to establish trading priorities and how it could best serve UK chipboard customers.
After a year’s trading Puhos UK is well in excess of budget, with the management team committed to ‘injecting a new impetus’ into the company’s added-value philosophy which, they point out, is backed up by commitment to big stockholdings.
Looking at 2002 and beyond, Puhos believes it is essential for the industry to discard attitudes of chipboard being a commodity. As Andy Moore, director of Puhos, said: ‘This is a recipe for deep discounting and an unprofitable industry unable to invest in product development, new technology and stimulating demand.’
Puhos, he added, had consistently invested in every aspect of the operation from raw materials and R&D, to manufacturing, marketing and customer service.
‘Innovation has driven our business and should be an increasing priority in our industry,’ said Mr Moore. ‘Our strategy for the construction market has been the development of a range of flooring solutions for house builders which present clear benefits in performance, ease of use and time/cost savings on site, such as Weather Dek2.’
Demand for Weather Dek2 has been so strong that Puhos set up a new laminating line at Rochester.
‘We’re also constantly adding further value with customised installation packages and we’ve established a close association with engineered I-beam manufacturers to extend the scope of the flooring solution. Further initiatives for the system will be launched during 2002.’
Customer feedback
According to Mr Moore, proof of the wisdom of the Puhos strategy has been customer feedback and sales figures.
‘The surprise is that some competitors are already attempting to market cheap low quality copies undermining the value-added proposition. Old habits die hard, I suppose, but it’s surely time for the industry to make a concerted effort to focus on quality.’
Puhos is also extending its product alliance policy with other top quality brands. Additions to the range include Le Mans heavy-duty chipboard from Belipa in France for mezzanine and other commercial applications and WISA Sprucefloor, which provides combination chipboard/plywood floor systems. The company has also announced an agreement with Willamette Europe to supply Medite MDF products alongside the Puhos range.
Mr Moore maintained that Puhos would continue to develop by precisely meeting customer and market needs. As an example of the strategy, he pointed to its provision of clear advice on product fixing and site practice with Weather Dek2. All necessary accessories have been customised to the product and accompany floor system house sets when they are delivered to site.
‘Installation delays are reduced because everything is to hand. Productivity is maximised and customers achieve a quality result, which enhances the value of their own project,’ said Mr Moore.
For the future, Puhos also plans ‘to set new standards in how we support our distributor customers in their service to end users’. In particular, said Mr Moore, the company must support trade channels in their marketing. ‘That means understanding customers and taking the initiatives to strengthen distributors’ propositions and product offerings. To do that we have to resource product development and service and that means realistic pricing. We expect to raise prices by some 3.5% from January and we are confident the desire for a premium product and service will see this accepted as a reasonable part of the quality equation,’ said Mr Moore.
