The DIY boom during Covid-19 pandemic drives demand for logistics packaging

The DIY boom during Covid-19 pandemic drives demand for logistics packaging

Longer stays at home due to the pandemic have encouraged consumers to do home and flat renovations or be more active in home gardens. This has resulted in the building products and DIY (do-it-yourself) market experiencing double-digit growths and thus protecting itself from declining revenues.

In the latest McKinsey's global survey on the world economy, executives at many companies sum up the year of the global crisis in a relatively positive light. Their forecasts for the future and their own companies' prospects are much more optimistic than before. This is particularly noticeable in the DIY industry where, for example in the UK during the March lockdown, online retail sales of DIY and gardening products rose by almost 50 percent compared to the same period a year earlier.

As stated by the general secretary of the European DIY Retail Association, John Herbert: "Most home improvement businesses around the world continue to enjoy double-digit sales growth compared to the pre-crisis situation and we expect this to continue until life becomes 'normal' again and the pandemic is behind us."

Reasons for the boom in building and interior design products during Covid-19

The strong growth in the DIY industry was largely due to the fact that large-scale home improvement shops were considered essential businesses in most countries, allowing them to stay open. Thus, home improvement shops and warehouses have become the second fastest growing retail segment in both stationary and online sales. For example, the garden, tools, paint, kitchen and bathroom departments saw double-digit growth in both online and in-store purchases. The average time spent shopping also increased by 10% compared to the time in 2019.

What's more, consumers spent a lot of time at home, which encouraged them to do renovations. Home improvement activity has increased incredibly this year, with 40% of consumers indicating that they plan to continue home improvement projects after the pandemic, according to research by NPD Group. This activity has led to an 11% increase in DIY store sales in 2020.

The graphic shows the value of the DIY retail market in the UK

Another issue is the fact that the real estate boom persists and a large number of flats have to be finished regardless of the circumstances. Also, the weather in the spring season is conducive to the development of construction and garden work. As the weather starts to warm up, trees begin to bloom and garden furniture emerges from the garage, renovation shops across the country are ready for the spring peak in demand.

Seasonality in the DIY industry is an integral trend

One of the most defining characteristics of the DIY industry is seasonality, this is true of the gardening department for example, when sales of live plants, lawn mowers or garden plants increase as the temperature rises. The same goes for other periods such as holidays or the holiday season. With seasonality in the industry comes the need for timely deliveries.

That is why companies prepare in advance and order mobile pallet racks as additional storage space, especially for bulky products.

Storage tasks are not the only area of the logistics centre's activities. An important task is picking pallets that will go straight to the selected network points. Deliveries from manufacturers are usually brought in on disposable wooden pallets. However, when it comes to storing goods that vary in weight and dimensions, pallets with product-specific load capacity are used.

In the handling and distribution of the DIY business, mesh roll containers are also increasingly used to facilitate the picking and transportation of products in the warehouse and shop.

Considering the variability of needs due to seasonality or unforeseen situations, many logistics managers take the opportunity to not only buy, but rent packaging. This is an extremely practical solution because you get the right logistics media at the time and place you designate for us, and after the rental period, we collect these products from you. It's a cost-saving solution because you don't have to incur the large expense of buying new packaging right away.

Beat supply disruption

According to a previously reported McKinsey report, company executives indicate that one of the growing threats to their companies' growth this year is becoming supply disruptions.

During Covid-19, the need for greater diversification when it comes to choosing suppliers became apparent. The broader home décor industry is not only huge, but also a very demanding sector of the economy. This is because it requires complex warehousing and logistics, carefully planned logistical processes, including, of course, the storage and flow of goods. So when logistic bottlenecks suddenly appear and suppliers have problems with obtaining larger quantities of pallets, extensions, metal baskets and other packaging, the solution may be the previously described rental.

Construction warehouse operative

Rotom has branches in 9 European countries, so there is never a problem getting the carriers you need. We have an extensive stock of packaging throughout Europe and can assist not only in the sale of products, but also their repair and maintenance and buyback

What else stands for working with Rotom not only during the Covid-19 pandemic?

Summing up the current situation, we notice that the role of an effective partner in logistics is primarily the flexibility of solutions. It is understood as an appropriate response to changes in the volumes of operated warehouses, markets or shops.

Is your industry growing? As a supplier are you struggling to find the right amount of packaging? The rising price of wood is driving up the price of wooden pallets? We are here to advise you in these uncertain times. For more than 40 years, we have been working with many companies in Europe and advising them on the most effective solutions. This also applies to the current situation. We help companies to grow, even if it is currently difficult to forecast financial results due to a prolonged pandemic.Contact us and our specialists will advise you on the right strategy for your business.