Encon's specialist divisions support growth for independent builders' merchants

In an article for the July/August issue of Builders’ Merchants News, Vaughan Taylor, Strategy Director for Encon Construction Products provides insight into the growing specialist divisions of The Encon Group and the opportunities they open for builders’ merchants in the wider construction market.

Choice, knowledge and reliability in changing markets

Encon has been a leading distributor to merchants for over 40 years. Over this time the business has invested significantly in its national network and specialist areas to become the UK’s No.1 independent distributor of building materials, with 23 branches across the country, from Aberdeen to Plymouth. Among builders’ merchants we are most well-known for the distribution of building insulation through Encon Insulation.

Supplying more, supporting more

Our business, however, is much more than insulation and goes beyond that of a product supplier.

The Encon Group includes three other specialist areas: Nevill Long – interior systems; Encon Technical Solutions – thermal, acoustic and mechanical services insulation; and Encon Construction Products – concrete, masonry, waterproofing and accessories. Collectively, all four specialisms represent an extensive range of building solutions for the built environment, from groundworks, building insulation and external façades, through to interiors.

The role of the distributor is extremely valuable in the supply chain. In effect we are an integral conduit that enables the delivery of products from manufacturers through to merchants and installers. But we also understand the importance of providing merchants with training and reliable advice so they can confidently recommend and deliver the right solutions to their builder and contractor customers. Each of our specialisms benefit from a team of technical experts with vast experience and in-depth knowledge to support merchants. Over the last 18 months, our experts have grown to include dedicated fire protection teams and specialists in infrastructure projects and solutions.

Changing markets

Since the onset of the pandemic, our whole industry has felt the strain of material shortages and long lead times as demand outstripped supply across multiple sectors, driven predominately by the surge in home improvements and house building. More recently however, the combination of geo-political challenges, steep supplier price rises, eyewatering fuel and energy rates and rising borrowing costs are heightening economic uncertainty. The outlook for the next 12 months is mixed.

RMI activity is expected to slow influenced by consumer confidence, but projections for new build activity currently remain positive. Strong growth is forecast into 2023 for major building projects such as the high-speed railway HS2, the Thames Tideway tunnel and the Hinkley Point C nuclear power station. Investment in large building and infrastructure projects is great for construction, but it does add pressure across the supply chain as the scale of these projects demand significant volumes of materials and large deliveries. It’s vital therefore that merchants know they can still access the specialist construction products they need to service mid-sized to smaller build projects.

Boosting growth in specialist markets

Encon Construction Products is the newest division to The Encon Group, introduced in 2019 and strengthening our position as the leading distributor in specialist markets. Construction Products has benefited from the heritage and experience of the Group and grown significantly since its inception with a dedicated and experienced team to support and advise customers on the best solutions for their projects. These solutions include a wide range of masonry components, concrete and reinforcement, waterproofing, construction chemicals, geotechnical and groundworking products, and from market-leading brands such as Ancon, Birtley/Expamet, GCP, RIW, Sika, Tecties, Visqueen and Weber.

While the focus for Construction Products has been predominately in major building and infrastructure, we also work closely with merchants to help them capitalise on the growth opportunity in specialist markets. Supplying merchants with a wide choice of construction materials, backed by the support of a knowledgeable team is only one part. The other crucial element is flexibility and reliability so that merchants get what they need, when they need it, in the quantities they need it, cost effectively and to specification.

Minimum order values can be highly disruptive, and we also understand the risk of taking in excess stock. We value the importance of adhering to build schedules and appreciate the domino effect when products arrive late or not in the right quantities or to the right specification. So we carry the stock, we break the bulk and we use our vast fleet to reach merchants with the right products and in the exact volumes they need so they can meet the requirements of their customers. This could include distress purchases or multiple deliveries recognising that some building sites have limited space for larger deliveries. Smaller and regular deliveries mean merchants can manage and plan their supply and ensure a seamless end-to-end service to their contractor customers. In effect, Encon Construction Products is an extension of the merchant’s supply chain with the national reach and set-up to react just in time.

This high level of service, support and convenience of supply opens huge sales opportunities for merchants in the wider construction market. And of course, the advantages of being part of a group is that merchants can also lean on our other specialist brands for additional building solutions, as they already do with Encon Insulation.

The Encon Group is here to help merchants sell more, and it’s why we are The Distributor of Choice.

To find your nearest Encon Construction Products branch, visit our branch locator page.