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The changing role of builders merchants in the construction supply chain

Author

Listed:
  • Andrew Agapiou
  • Roger Flanagan
  • George Norman
  • David Notman

Abstract

Builders merchants are an integral part of the construction industry, yet rarely are they consulted when discussions take place on the future of the construction industry. Throughout history, builders merchants have played a dominant role in the construction industry, initially as an intermediary between the artisan and the buyer, and more recently as a source of working capital for contracting firms. The merchanting industry currently is undergoing considerable change. The depressed construction market and the failure of the housing repair and maintenance sector to recover in the first half of the 1990's as activity in the private non-housing repair and maintenance sector has increased, has raised competition between merchants. The major building merchants are becoming larger by acquisition and merger, the smaller merchants are seeking niche areas, and the medium-size firms are under serious threat from acquisition by the larger merchanting firms. The trend towards consolidation in the sector, driven by the need to reduce costs, has meant that the large merchanting firms now control around 60% of the building materials market sales. Factoring is a growing trend, particularly with smaller companies sourcing goods from the cheapest source. The larger merchants have to respond by sourcing goods from the lowest cost base, irrespective of whether they buy from overseas markets. This paper analyses the UK builders merchants sector and evaluates the important role played in the supply chain.

Suggested Citation

  • Andrew Agapiou & Roger Flanagan & George Norman & David Notman, 1998. "The changing role of builders merchants in the construction supply chain," Construction Management and Economics, Taylor & Francis Journals, vol. 16(3), pages 351-361.
    • Handle: RePEc:taf:conmgt:v:16:y:1998:i:3:p:351-361
    DOI: 10.1080/014461998372376
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    Citations

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    Cited by:

    1. Kamal Dhawan & John E. Tookey & Ali GhaffarianHoseini & Mani Poshdar, 2024. "Monetised sustainability impacts of integrated planning in the manufactured construction products industry: A transport perspective from New Zealand," Journal of Economic Analysis, Anser Press, vol. 3(4), pages 161-185, December.
    2. Qingbin Cui & Makarand Hastak & Daniel Halpin, 2010. "Systems analysis of project cash flow management strategies," Construction Management and Economics, Taylor & Francis Journals, vol. 28(4), pages 361-376.
    3. da Cunha, Richard Alex & Rangel, Luís Alberto Duncan & Rudolf, Christian A. & Santos, Luiza dos, 2022. "A decision support approach employing the PROMETHEE method and risk factors for critical supply assessment in large-scale projects," Operations Research Perspectives, Elsevier, vol. 9(C).
    4. Kamal Dhawan & John E. Tookey & Ali GhaffarianHoseini & Mani Poshdar, 2023. "Using Transport to Quantify the Impact of Vertical Integration on the Construction Supply Chain: A New Zealand Assessment," Sustainability, MDPI, vol. 15(2), pages 1-26, January.
    5. Gul Polat & David Arditi, 2005. "The JIT materials management system in developing countries," Construction Management and Economics, Taylor & Francis Journals, vol. 23(7), pages 697-712.
    6. Dirk Lindebaum & Susan Cartwright, 2010. "A Critical Examination of the Relationship between Emotional Intelligence and Transformational Leadership," Journal of Management Studies, Wiley Blackwell, vol. 47(7), pages 1317-1342, November.

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