New Guidance on Trade Credit Insurance

Following reports that members were finding it more difficult to obtain trade credit insurance, The Builders Merchants Federation (BMF) has been working with members, the Department of Business and Trade, and the Association of British Insurers (ABI) to uncover the extent of the issues and provide guidance to help ameliorate their effect.

A survey of BMF members confirmed that credit insurance is recognised as a valuable business tool in the construction sector, with 45% of respondents using this solution. 

The survey revealed other notable trends, including an inevitable hardening of the market over the past 12 months. Significant changes include increased insolvency activity and related business concerns for the year ahead. 

However, despite the impact of bad debts due to insolvency, more than half of respondents have not experienced credit limit reductions.  

When limits were reduced, respondents acknowledged the increased credit risk reported by their insurer and took appropriate actions. 

The insurance industry is supportive of clients facing credit limit reductions, with 68% of respondents finding insurers receptive to appeals.

The insights gained from the survey provided valuable context on the current landscape in the building materials sector and informed the BMF’s detailed discussions with the ABI, which has led them to produce a guidance document specifically for the construction industry, which is fully supported by the Construction Leadership Council (CLC).

John Newcomb, BMF CEO said: 

“Overall trade credit insurance remains an essential tool for our sector, with a significant portion of survey respondents expressing concern about bad debts affecting their business.  
We are pleased that the outcome of our discussions with the ABI provides new guidance which will help members when dealing with their trade credit insurance provider.”

Lucy Fraser, Senior Policy Adviser, General Insurance Policy at ABI said:
 
“Amidst challenging conditions, insurers are doing all they can to offer crucial support to businesses, with a 23% surge in claims paid by the close of last year. Our Guide for Construction is there to show how trade credit insurance can act as an essential lifeline for businesses and it offers guiding insights on what information an insurer will look for.”
 
The bespoke ABI Guidance Document can be downloaded from https://www.shorturl.at/zCET2

The summary information from the BMF's member survey can be found here: 

https://shorturl.at/fqHMP

FMB President to speak at BMF Annual Conference

Chris Carr, National President of the Federation of Master Builders (FMB), is the first industry speaker to be confirmed for the BMF Members’ Annual Conference in September.

Chris is Managing Director of a fourth-generation family housing developing company, Carr and Carr (Builders) Ltd, based in North East Lincolnshire.  The company builds small developments and executive homes around the towns of Grimsby, Cleethorpes and the surrounding Lincolnshire Wolds.

Chris is passionate about the construction industry, especially the house building sector. In addition to his role at the Federation of Master Builders, he is a member of the Construction Leadership Advisory Group, Chair of the Construction Leadership Council’s SME Housebuilders Group and represents smaller housing development companies on several Future Homes Hub sub-groups. 

Chris will discuss his experience as a developer committed to building high quality homes alongside two other industry speakers representing builders’ merchants and building materials manufacturers.  The session will conclude with a Q&A.

BMF CEO, John Newcomb said: “SME builders are an important customer group for our members. I am really looking forward to hearing Chris’s perspective on the sector, in particular what his company is doing to make a material difference both for their customers and the wider industry.”

The BMF’s annual flagship event will take place on 18 and 19 September at the Leonardo Hotel and Conference Venue at Hinckley Island in Leicestershire. In addition to informative and entertaining conference sessions, interactive workshops and exhibition, the event encompasses sporting and social networking opportunities, including the BMF Golf Tournament and a black-tie Awards Dinner celebrating members’ achievements.

For more information and to book your place at the BMF Annual Conference and Awards , headline sponsor Unilin Insulation, please visit http://tinyurl.com/5n8xbxrc or contact [email protected]

BMF welcomes changes to 20mph speed limit in Wales

A trade association, which campaigned for a review of the 20mph speed limit in Wales, has welcomed moves to change the policy, as announced by Ken Skates MS, Cabinet Secretary for North Wales and Transport.

The Builders Merchants Federation, which represents the country’s building materials supply chain, took action after its members reported a range of issues, including delivery disruption affecting stock levels and waiting times.

David Pattison (pictured), South Wales Regional Chairman of the BMF, wrote to Ken Skates and First Minister, Vaughan Gething, last month, urging a review of the policy.

Commenting on the news of changes to government policy, Mr Pattison said: “Nobody can reasonably quibble with having sensible, well-defined and enforceable 20mph speed limits at certain locations, notably outside schools, hospitals and care homes”.

“But the BMF agrees with other business and motoring organisations that regard the 20mph default speed limit on Welsh roads as a misguided and counterproductive policy, which will not deliver the assumed benefits”.

“We are pleased that ministers have listened to BMF views and the constructive ideas we put forward we think will lessen the impact on our supply chain.

“We look forward to hearing Mr Skates’ statement to the Senedd with the details”.

CBI Lead Economist to speak at BMF Conference

Alpesh Paleja, Lead Economist in the CBI’s economics team, has been confirmed to speak at the BMF Members’ Annual Conference on 19 September. 

Alpesh’s role at the CBI focuses on the UK economy and leading its work on the economic forecast.  Alpesh oversees much analytical work across the team – including the CBI’s prestigious business surveys – and regularly presents to and advises businesses on economic developments and the outlook. He has worked at the CBI for fifteen years in a variety of roles, previously covering emerging markets and leading economic analysis on a variety of policy projects.

John Newcomb, BMF CEO said: “With the rate of inflation falling and a general election on the horizon, this is a pivotal time for the UK economy.  I’m sure everyone will be interested to hear from Alpesh on what is likely to come next.”

The BMF’s annual flagship event will take place on 18 and 19 September at the Leonardo Hotel and Conference Venue at Hinckley Island in Leicestershire. In addition to informative and entertaining conference sessions, interactive workshops and exhibition, the event encompasses sporting and social networking opportunities, including the BMF Golf Tournament and a black-tie Awards Dinner celebrating members’ achievements.

For more information and to book your place at the BMF Annual Conference and Awards , headline sponsor Unilin Insulation, please visit http://tinyurl.com/5n8xbxrc or contact [email protected]