A Business Built on Resilience

The conversation begins with a look back at the heritage of George Bence & Sons, a family business spanning over 170 years and six generations. Chris Bence recounts defining moments, including a devastating but ultimately transformative fire in 2000 that destroyed the original showroom. From the ashes came a modern, purpose-built facility — a recurring metaphor throughout the discussion for how adversity can force positive reinvention.

This historical context sets the tone: independent merchants have always faced disruption, whether from wars, recessions, pandemics, or structural shifts in the industry.

The Core Problems Raised

1. The Toughest Trading Conditions in Decades

Both Paul and Chris agree that the current climate represents the most challenging period they have experienced. Despite surviving multiple recessions, today’s pressures feel different.

Key problems identified:

• Rising employment costs driven by national living wage increases and employer contributions

• Severely reduced industry volumes

• A widespread lack of confidence leading customers to delay investment decisions

• Increased risk aversion across businesses and consumers

Paul describes this as a “triple R” challenge: Risk, Regulation, and Rising costs, with people costs accounting for roughly 70% of overheads.

2. Confidence Has Collapsed

Unlike previous downturns, there is little visible “light at the end of the tunnel.” Businesses and customers alike are sitting on cash, postponing purchases, expansions, and upgrades. This has a knock-on effect throughout the supply chain, including reduced footfall at trade counters.

3. Skills Shortages and an Ageing Workforce

The discussion highlights a growing gap in skilled trades, drivers, and machinists. Apprenticeships are seen as vital, but the speakers stress that the issue goes beyond formal schemes — it’s about getting young people into the industry at all and showing them that it offers long-term, well-paid careers.

4. Succession and Family Business Pressures

Inheritance tax and succession planning are flagged as potentially catastrophic for family-owned merchants. The conversation touches on the emotional and financial strain this places on long-established businesses, particularly when ownership transfer threatens continuity.

Key Questions Asked — and the Answers Delivered

How can independent merchants survive in today’s market?

Answer: Keep moving forward. Retreating and cutting too deeply may protect short-term cash but risks long-term relevance. The speakers advocate being selectively bullish, investing where it strengthens future positioning.

What should smaller or newer merchants focus on?

Answer:

• Product diversification – sell more of what goes into a house (doors, windows, flooring, kitchens, bathrooms)

• Product champions – employ people who truly understand and advocate for specific ranges

• People retention – good people are the biggest competitive advantage

Is online a threat or an opportunity?

Answer: Online is a major growth opportunity when used strategically. Paul shares how a dropship business grew eight-fold and is now targeting European expansion. While Amazon is acknowledged as powerful, its limitations in heavy materials, credit provision, and local relationships give independents a defensible edge.

What is the single biggest factor behind long-term success?

Answer: Cash flow.
Chris is unequivocal: “Cash flow is king.” Without it, even strong businesses fail.

Should merchants embrace working from home?

Answer: With caution.
While flexibility is important, especially for project-based roles, both speakers argue that face-to-face interaction drives productivity, culture, and wellbeing in a highly social industry like building materials.

How can footfall be increased when trade is down?

Answer:

• Proactive outbound sales activity

• Re-engaging dormant customers

• Incentive schemes that build emotional commitment

• Community-driven relationships rather than price-led tactics

The message is clear: waiting for customers to return isn’t enough — merchants must go and find the business.

The Power of Independence, Community, and Collaboration

A recurring theme is the strength of being an independent, family-owned business:

• Faster decision-making

• Fewer layers of bureaucracy

• Stronger personal relationships with customers and suppliers

The speakers also highlight the importance of industry bodies such as the Builders Merchants Federation (BMF) and buying groups like Fortis, which provide scale, lobbying power, training, and networking — all critical in today’s environment.

Beyond business, the conversation underscores the value of giving back, from local football club involvement to charitable contributions. These efforts aren’t driven by marketing but by genuine community connection — and that authenticity pays dividends.

Final Takeaway

This episode of Movers & Shakers delivers a powerful reminder that while the challenges facing independent merchants are real and severe, the foundations for survival and growth remain unchanged: cash flow discipline, great people, adaptability, strong relationships, and the courage to keep moving forward.

For independent merchants willing to evolve without losing their values, the future — though difficult — is still very much worth fighting for.