Nothing We Haven’t Seen Before

As I ‘cruised’ into my first days of work this January, I was quickly shaken out of my holiday slumber with a realisation the world hadn’t taken the same unhurried rest as the one I was able to enjoy. Seemingly, there is plenty going on and it is my job to ensure Bowens and Timbertruss are ready. I feel like I’m in catch-up mode before the year has properly begun.

Let’s start with “Australia’s Housing Crisis”. Every day there is another expert writing another article on how to solve the challenge of putting a roof over the head of every citizen and making home ownership more accessible. The issue has my unqualified attention. To state the obvious, my business operates in this space, our customers too. Is there a role we can play?

“Every day there is another expert writing another article on how to solve the challenge of putting a roof over the head of every citizen and making home ownership more accessible.”

The cost of living also dominates; this extends to the costs of running a business. For those readers who are business owners or responsible for the running of an entity, big or small, it is likely you’ve never seen cost increases like those we’ve experienced over the past few years. WorkCover premiums have moved beyond common sense, with new legislation stalled in the Victorian Parliament. Premium increases averaged 42 per cent in 2023, how much more will we be expected to ‘absorb’? Other insurances, payroll tax, the additional impediments for owning property, a jump in superannuation, fuel … it is all having an effect.

“WorkCover premiums have moved beyond common sense, with new legislation stalled in the Victorian Parliament.”

And then I read some articles from one of my favourites, Robert Gottliebsen. Australia’s small business landscape has long been considered the backbone of the economy, fostering innovation, job creation and economic growth. My man Robert is suggesting this is all under threat. In The Australian on the 15th January he wrote, “The Albanese government has started its 2024 agenda with an unprecedented six-pronged attack on Australia’s family business network.” He takes a swing at union representation, retrenchment benefits, new climate reporting, an increasing complexity around the employment of casual labour and the stripping of powers from the ACCC. I’m still attempting to get myself up-to-speed on these and other matters he so passionately raises – I have some reading to do. 95 percent of our customer base are small businesses, we need to understand their challenges as much as our own.

“Australia’s small business landscape has long been considered the backbone of the economy, fostering innovation, job creation and economic growth.”

Of course, there are also many world events we cannot avoid. Wars, the widening gaps in China’s economy and an incredibly important U.S. election. When Russia invaded Ukraine there was a material effect on the supply of timber and wood products into the Australian market. We need to be mindful of any international influences.

“When Russia invaded Ukraine there was a material effect on the supply of timber and wood products into the Australian market.”

And what about AI? Should I have a firm feel for how we will manage its influence (I don’t)? Closer to home, it remains a difficult time for many builders. The constrained trading conditions over the past four years continue to linger, although the newspapers appear to be making more of recent failed enterprises than what we have witnessed in our debtors’ ledger. I’d like to think things have improved, although it is too early in the year to make such a declaration.

Yes, there is a bit to account for but it makes me wonder. Has it ever been that much different?

While I bemoan some of the less than perfect circumstances we face today, I was reminded Bowens turns 130 years old in 2024. Such a significant anniversary evokes memories of our founder, Richard Bowen, and what he faced when starting out.

“Such a significant anniversary evokes memories of our founder, Richard Bowen, and what he faced when starting out.”

“On 29 April 1894 Bowens was officially born. It was the most preposterous time to launch a new business; in fact, it could not have been much worse. As the decade continued, it became apparent Melbourne had overreached itself … Building Societies were closing their doors and no less than seven banks fell over in succession … Unemployment soared and people flowed out of Melbourne in search of work in rural areas or interstate.” [p6, ‘Sixpence for a piece of timber’ – Bowens 125 year history]

Richard never had an easy ride. For all my huffing and puffing, there is no doubt my generation has it easy. In fact, we have a lot to look forward to in this historically important year.

“In fact, we have a lot to look forward to in this historically important year.”

We started with the exciting launch of a ‘new’ store. In 1970 Richard’s son, my grandfather, purchased land in Hastings, with proceeds from the sale of a site the company had owned since it’s first day of incorporation, in Dryburgh Street, North Melbourne. A building was quickly constructed, one that has housed our Mornington Penninsula business for the past 53 years. The rebuilt facility has revitalised the site and is an outstanding example of how we wish to present ourselves to the market. It houses more products than any other store in the network, provides a great working environment for our team and is a seriously good option for our customers on all fronts.

“The rebuilt facility has revitalised the site and is an outstanding example of how we wish to present ourselves to the market.”

At the same time, we’ve started a major extension to our store in Epping. Unlike Hastings, this renovation comes only 15 years after the original development of the site. It’s necessary, as we push to improve our relevance by providing a better service to Melbourne’s burgeoning northern suburbs.

Also underway is the transformation of an old Bunnings store we purchased late last year, in Melton. Backing onto the Western Highway, the refit should be complete by midyear and will provide a great space for our staff, as well as accommodating a superior offer to builders and building professionals in Melbourne’s northwest.

As it is every year, we need to tread a fine line between reinvesting in the business, managing economic issues of the day and enhancing our value to loyal customers. No good comes from resting on our hands. Of course, 2024 will throw up challenges not yet imagined. When they occur I will be calling on the spirit of great grandfather Richard to guide our decision making, inspired once more by his determination to push ahead, even when the headwinds appeared overwhelming.