How businesses can survive a challenging economic climate : Timber Development UK

At the recent Annual General Meeting of the Trussed Rafter Association, delegates gathered to hear a keynote that balanced realism and optimism. Chris Maityard, founder of Moorgate Management, explained that while the market may be difficult, there is opportunity out there. But only for those prepared to adapt and tighten their grip on the fundamentals.

Maityard’s theme, ‘Working to Survive’, drew on his time as Founder of business consultancy Moorgate Management. His career spans the contracting, housebuilding, distribution and manufacturing sectors, where he has held leading roles through previous economic downturns.

His presentation focused on practical actions that businesses can do to protect themselves against the ongoing economic downturn. His central point was straightforward: construction is cyclical and the upturn will come. But which businesses are still standing and ready to grow when it does?

The current climate

Maityard began by giving a brief overview of the market – one that was familiar, if sobering. Construction output and housebuilding activity have slowed, and margins are being squeezed. Costs to serve – the total expense a company incurs to fulfill demand – are rising, particularly due to distribution and fuel issues. Meanwhile debtor days are stretching and cash is taking longer to return to the business. That combination is creating sustained pressure on cashflow and profitability.

Even so, the message was not one of overall decline. There is still work in the market, and some sectors are performing better than others. Timber, in particular, continues to hold up relatively well within merchant channels, and there are signs that the market may be approaching the bottom of the current cycle.

The opportunity for businesses lies in capturing a greater share of available work without eroding their margin. That, Maityard said, requires a shift in mindset. Rather than waiting for conditions to improve, businesses need to focus on what they can control.

The importance of collaboration

One of the strongest themes to emerge from the session was the value of collaboration. Maityard was clear that businesses perform better when they work more openly with suppliers, customers and their peers. Trust, information sharing and collaborative problem-solving can unlock efficiencies that are difficult to achieve in isolation.

In practical terms, that might mean:

working more closely with suppliers on stock planning
exploring shared logistics with non-competing businesses
aligning with customers to better understand their pipeline and pressures

These steps can reduce cost to serve, improve service levels and strengthen long-term relationships. They require a degree of confidence and trust. There is scope to explore new forms of collaboration, whether through partnerships, closer alignment with suppliers and customers, or different routes to market. These approaches can open up new opportunities while reducing reliance on any single revenue stream.

Know where you stand

Clarity within the business itself is crucial. Many organisations struggle not because they lack customers, but because they unaware precisely where their profits are generated and where they are lost. One of the most common issues is insufficient insight into product lines, customer segments or individual contracts. Maityard said that, within the businesses he is asked to support, it is not unusual to find a single part of a business to be underperforming significantly without management fully understanding the overall impact.

Opening up conversations about performance or operational challenges can be a painful nettle to grasp, but the evidence suggests those who do so will ultimately gain a clear commercial advantage.

Maityard recommended that businesses break down their profitability by product, customer and sector, using existing systems or simple data tools. Once that visibility is in place, decision-making becomes far more effective. This approach also extends to customer segmentation. Understanding which types of customers deliver strong margins, and which do not, allows businesses to focus their efforts where it will have the greatest return.

Alongside this sits the challenge of cost to serve. Even where volumes remain stable, increasing delivery costs, inefficient logistics and fragmented ordering patterns can erode margins quickly. The response lies in operational discipline.

Route planning, fleet utilisation and delivery consolidation all have a role to play. There is also scope to rethink traditional models. Sharing logistics with trusted partners, for example, can reduce unnecessary mileage while maintaining service levels.

Technology offers further opportunities. From route optimisation tools to stock management systems, relatively low-cost system solutions can deliver measurable gains for a business who understands how to use them. Better use of data can reduce stockholding, releasing cash back into the business, while improved systems can streamline ordering, invoicing and communication. Businesses that are easier to deal with and offer streamlined processes are more likely to retain customers, even when pricing pressure increases.

People and productivity

People are another critical part of the equation. Labour costs typically represent a significant proportion of turnover, yet productivity often varies. One of the simplest tools available is a clear roles and responsibilities structure. By mapping out who does what within the business, gaps, overlaps and inefficiencies become visible. It also helps everyone focus on their core responsibilities and reduces reliance on key individuals, which remains a common risk across the sector.

There is also a cultural element, since leadership behaviour tends to set the tone for the wider business. In a challenging market, maintaining a sense of direction and confidence is essential. Teams take their cues from management, and uncertainty at the top can quickly affect performance throughout the business. Training and development play an important role as well, improving efficiency while helping to retain staff who might otherwise feel undervalued.

Cashflow is king

Cash, of course, remains the single most important measure of control. A recurring issue, Maityard said, is the absence of a short-term cash flow forecast. Creating a rolling 13-week cash flow, mapping expected inflows and outflows, provides immediate visibility of potential pressure points and allows management teams to act early to prevent problems while there is still time to fix them.

This level of oversight can also help to reassure lenders and investors. Demonstrating a clear understanding of cash position and future requirements builds confidence and supports access to funding if required. Credit management is part of this picture; clear policies, consistent application and efficient collection processes all contribute to healthier cash flow. Even small improvements in payment performance can have a meaningful impact on the bottom line.

While much of Maityard’s advice focused on stabilising performance, the underlying aim was to offer advice on how to prepare for the recovery, when it comes. Growth opportunities will return, but they need to be approached with discipline, otherwise businesses can struggle just as much when they cannot meet demand. Expansion should be based on a clear understanding of expected returns. Growth without profitability adds risk rather than resilience. In many cases, greater value can be unlocked by improving performance within existing operations rather than extending the footprint.

The tone of the session remained grounded throughout. The challenges facing the sector are real, but they are not insurmountable. Maityard believes that the companies who navigate this period successfully are likely to be those that focus on fundamentals: understanding their numbers, managing their costs, engaging their people and building strong relationships across the supply chain.

Surviving the current challenges, Maityard made clear, requires active decision-making, discipline and a willingness to adapt. Those who take that approach are far more likely to come through the current cycle in a position of strength, ready to take advantage of the opportunities that follow.

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How businesses can survive a challenging economic climate

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