Contrary to what the media told us in April/May the world has not caved in, fallen off a cliff or ground to a halt. They were certainly not the only ones to think it might be so. As a recruiter of 25 years, my own predictions were bleak when I saw my pipeline hit the wall and literally every assignment that I was working be cancelled or put on hold. My clients were busy furloughing employees, cutting costs and planning for the worst.
But it has not panned out that way for many businesses in the building materials industry. Sure, there have been losers such as the commercial furniture industry that have hit hard times, but for every business that has struggled there have been many more that have profited. ‘The outdoor living category has never been so busy. We have never seen such gains as we have in 2020’ says John Klovansky, Area Sales Manager for The Azek Company.
Unexpected demand has seen many manufacturers scrambling to bring employees back from furlough. Retailers and distributors have struggled more with supply than demand. Driven by changes in customer behaviours (work-from-home, moving away from major urbanisations, increased demand for outdoor spaces, and more share of wallet going towards the home than travel) and a red hot housing market in many areas, demand for many products has soared.
So rather than fall off a cliff, it would be fair to say that the industry remains in good health. The price of building a home is going up but it does not seem to be cooling the demand for new houses.
But what of 2021? Does anyone dare predict what will happen? Will a vaccine be found? Will the health crisis catch up with the housing market? Will the lumber price drop? Will customer behaviours change again? Will governments try to stimulate the construction market? Predictions are surely a fool’s game right now.
It seems adapt, adjust and keep driving forward is the strategy that many of my customers in the building materials industry are taking and, it must be said, so are we. DMC Recruitment recruits for the Design & Architecture market, the Building Materials market, and the Construction market so we are heavily dependant on home building and construction. At time of writing, it seems that customers are busy, they have recruitment needs, and are actively hiring them. Certainly, there is a lack of confidence and, more often than not, this means an additional stage or two for the potential candidate in the interview process, but organizations are still hiring, they are still planning for the future and they are still pushing forwards.
The talent on the market is arguably better than before. Some unlucky people have found themselves having to exit struggling businesses and many more have found themselves questioning their treatment or situation during the lockdown. So, whilst the market is not awash with candidates, the pressure that firms experienced in Q1 2020, where there were barely any available candidates, has loosened. But it does not mean we are back to an environment where clients can pick and choose because of a huge supply of talent. Talent always finds a home and is never available for long. There remains a need to be hunting that talent and working hard to attract it to your organization.
For 2021, who knows? There is little doubt that if organizations don’t hire and the market remains strong that they will be left behind. If they over-hire and recession does hit, they may have regrets. Talent is not expendable. It remembers. A good employer brand does not get turned on and off. If you mistreat employees for commercial gain, the market has a long memory.
Hiring right and top grading is possibly the solution. Increase the calibre of your employees and those same employees will more ably carry you through whatever the market might throw at you. Don’t take risks, but do still hire talent. Don’t forget that a business is only as good as its people and keeping that team refreshed and motivated is important regardless of the economy.
If you want up to date information on the employment market for building materials please do not hesitate to call me. If you want a prediction for next year, Zoltar might be a better bet!
Stephen Borer is a Partner at DMC Recruitment. DMC provides executive search and contingent recruitment solutions to the Design, Materials, and Construction markets across the US and Canada.[email protected]
