BiKBBI The Installer Australia Supplement November 2017

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Supplement November 2017

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Australia Supplement

EVERYTHING YOU WANTED TO KNOW ABOUT THE AUSSIE KBB MARKET The official magazine of The British Institute of KBB Installation

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Welcome

Welcome ...

G’day!

Most of us, at least once in our lives, will have thought about moving abroad and starting a new life somewhere in the sun. One of the most popular destinations is Australia with its wonderful climate no language barrier and furthermore, it’s widely recognised as a land of opportunity for us Brits.

Rob Nicholls Publisher & Editor

Of course, there are many, many reasons why emigrating never becomes more than a just a passing thought with perhaps the biggest being the fear of uprooting and going into the unknown. This supplement gives KBB installers a look at how the KBB market and general lifestyle compares to the UK whilst offering genuine employment opportunities for those who may be interested in a complete lifestyle change.

The content of this supplement was created when the BiKBBI, Chief Executive Officer, Damian Walters, took an educational visit ‘down-under’ to see how the market and installations in particular, differ to here in the UK. We also here from John Bourke who is the Managing Director of a large kitchen retail business based in Queensland and New South Wales and from Dean Kiss, an ‘ex-pat’ installer who gives a personal ‘heads-up’ to anyone wishing to follow in his footsteps.

Enjoy the read.

Rob Rob Nicholls Publisher & Editor

If you enjoy reading this supplement and would like to recieve The Installer Magazine on a regular basis completely free-of-charge then please click here.

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Australia Feature

Photo by Jeremy Bishop on Unsplash

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Australia Feature

SPOTLIGHT ON OZ!

by Damian Walters, BiKBBI, CEO.

Following a period of negotiations with our far-flung cousins (i.e. me begging the Australians to visit), I was lucky enough to be invited down-under to take a look at how the Aussie KBB model operated and with a view to explore mutually beneficial learning opportunities for installers in both the UK and Australia.

Before I begin, I should add that despite being a well-seasoned traveller myself, I genuinely had no concept of how just how far away Australia actually is! Despite making two flights spanning 23-hours for just a one week visit, it was more than worth it. My advice is don’t ever let the distance ever dissuade you from visiting as it’s one of the most beautiful, hospitable and amazing places I’ve ever visited.  5

Australia Feature

I arrived on the morning of the MayweatherMcGregor fight, which was being aired live from Vegas and due to the time difference (+10 hour ahead of GMT), the Aussies had the pleasure of watching it at a far more civilized time in the middle of the afternoon.

I have always been fascinated about how other countries operate their respective KBB industries, especially the installation element. We’ve all heard generalisations about our Italian, French, German and even US cousins regarding business but rarely Australian, possibly because it’s so far away?

Nevertheless, I’m a great believer that reinvention of the wheel isn’t always needed, so exploring how other countries operate and learning by their successes and failures, seems like a complete no-brainer to me.

After just a few days down under, it became apparent that they do things very differently when it comes to kitchens, bedrooms and bathrooms. Whilst you would be hard pushed to find a British town or city without a KBB showroom or trade outlet, the Australian’s simply don’t have many KBB retailers at all! I found it genuinely bizarre!

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Furthermore, there are very few Australian retail chains that sell kitchens, bedrooms and bathrooms directly to consumers from a retail showroom. Instead, the population relies on tradesmen who often operate from workshops attached to their home and serving their own communities.

“I have always been fascinated about how other countries operate their respective KBB industries, especially the installation element.”

Kitchens are usually purchased from ‘Cabinet Makers’ who construct, sell and install directly to consumers, with bathrooms being sold and installed by local plumbers. Of course, 

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the sheer vastness of the country creates a natural logistical challenge and this may well be the driver behind this big difference, but I still found it hard to believe that no-one was operating nationally.

The main player of mass-produced retail product is Bunnings, the Australian company who recently bought Homebase. However, amongst tens of thousands of square footage in their ‘Goliath’ stores, its KBB offering is only a tiny part of their overall product portfolio and is primarily an offthe-shelf, entry level DIY kitchen and bathroom, which doesn’t include an installation service.

When visiting some Bunnings showrooms I noticed that there was little emphasis on KBB product and absolutely no approach by staff members to discuss my interest. There were plenty of staff instore, but most were shuffling around the piled high product that you’d expect to see in these warehouses.

To be fair to Bunnings, their stores are hugely impressive; both in terms of sheer enormity and their product offering (they are genuinely gargantuan

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“After just a few days down under, it became apparent that they do things very differently when it comes to kitchens, bedrooms and bathrooms.” and filled to the brim with ‘stuff’ that would excite even the most reluctant of DIY householders). It really is an emporium for the average Aussie male especially, and sadly, even I found myself salivating around the rows of barbecues, some seemingly as big as the average UK family car!

The next business that I looked at is operating from the national electrical retailer ‘The Good Guys,’ which I suppose would be the nearest equivalent of Curry’s in the UK. It is a very respected retailer of all things electrical, from TV’s to kitchen appliances and once again, nestled amongst the vast array of

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Australia Feature

tech is a concessionary kitchen business, formally known as ‘The Good Guy’s Kitchens’ but now branded as ‘Wholesale Kitchens’.

‘Wholesale Kitchens’ offers both a flat-pack and ridged carcasses and importantly, purchases included installation. This section of showroom, despite not displaying many kitchens, was much better than that of Bunnings and it was manned by a member of staff, though in reality he was more a lead-taker than a sales designer as we know it here.

For those of you with good memories, ‘The Good Guys’ kitchen offering was not too dissimilar to the old ‘Hygena’ concession at Curry’s that was operated by the since departed MFI, it is basically, a small franchise within an electrical retailer, with a sample offering of product. It’s clearly an obvious connection for both the kitchen supplier and electrical retailer and I guess a natural marriage between two complimentary product offerings; I did get the impression however, that

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customers would be drawn into the store by the electrical goods, rather than the kitchens. It is probably a good business decision by the kitchen company as I am in no doubt that it’s mutually beneficial to both.

‘The Good Guys’ does offer a home measure and installation service, but if I were a customer I would have liked more expertise and knowledge in the showroom before committing to a home visit.

The final company I looked at, and the business I spent most of my time with, was a kitchen specialist called ‘Kitchen Connection,’ a retailer of a kitchen and bedroom product owned

by Australian company, the KWB Group, who also owns ‘Wallspan.’ It’s a great company and they prosper partly because competition is scarce, with only a few independent retailers operating from showrooms in Brisbane (Queensland).

‘Kitchen Connection’ clearly follows a European KBB retail model, with a comprehensive and impressive range of products on 

Australia Feature

display in a dedicated retail showroom environment.

With 16 showrooms across two states (Queensland and New South Wales), this is a business that nurtures a close relationship with a manufacturer as they uniquely share the same head office and manufacturing space; furthermore, it has obvious ambitions of dominance in this market.

“‘Kitchen Connection’ clearly follows a European KBB retail model, with a comprehensive and impressive range of products on display in a dedicated retail showroom environment.”

What was also apparent was their somewhat surprising love of POMs as the company employs

many expats both for sales and installations.

Kitchen Connection (KC), unlike most in Australia, does provide an installation service to its customers, installing around 300 kitchens a month across its impressive and growing network of stores. Its showrooms are inspiring, with a mix of compelling and more familiar retail offerings. The company offers sales incentives; the deal at the time of my visit was a mouth-watering 50% off kitchen cabinets, very similar to what you might see in the UK, especially the sheds.

It is apparent that like the majority of British KBB retailers, an installation service forms part of the overall customer proposition, which brings me nicely to my particular area of expertise, installations!

What has always bothered me here in the UK is that almost anyone can be a tradesman; lose your banking job in the city and having only ever ‘fitted’ your Aunt Mable’s kitchen, there’s absolutely nothing to prevent you from becoming a kitchen installer, its ridiculous! Okay, there is regulation around competence in most cases, with perhaps gas and electrical work being more tightly governed, but broadly speaking, our industry is open to an influx of  11

Australia Feature

novices, cowboys all of whom compete ‘legitimately’ with professional KBB installers. Why on earth the government haven’t sorted this out by now is beyond me, but as far as I can see, it always appears preoccupied with bigger issues, at the moment it’s BREXIT of course.

In Australia, the rules are very different. In order to be a ‘Tradey’ (that’s tradesman to you and me), you must register with the local authority and gain a license to operate. Operating without one is an offence; furthermore, it’s not a generic license either as you are required to register each trade that you work in and to obtain it, you must provide evidence of competence via a formal qualification. No qualification means no licence, therefore most tradesmen usually specialise in just one trade, for example, carpentry, cabinet making, plastering, electrics etc.

If work is carried out in a home without a license, the ‘tradey’ can be prosecuted, or even receive a licensing ban, preventing them from carrying out any work; the consequence of breaking the law is fairly tough, although this is not always regulated, according to the locals. This is very different to the UK of course.

The local authority also deals with complaints, dispute resolution and importantly insurance. Any project with a combined labour and materials value

Images: Design inspiration from Kitchen Connection

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of $3,200AU (about £2,000) must include an insurance backed guarantee to protect the consumer, should the ‘Tradey’ go missing or if it’s business fails once consumer monies have been exchanged.

“In Australia, the rules are very different. In order to be a ‘Tradey’ (that’s tradesman to you and me), you must register with the local authority and gain a licence to operate.”

The only downside is that licensing is set and policed by civil servants, which doesn’t always work well for the tradesmen as I get the impression that there’s a void between legislation and practical understanding due to the civil servants lack of hands-on expertise.

Furthermore, registration costs are high (around $1000 per trade, per 

Australia Feature

year) and there are no add-on benefits for the licensee either, it’s literally a straightforward no-frills licensing scheme.

In addition, licensing does not represent the trade and therefore is not responsible for standards; education or support, there is a big gap here.

Whilst there are downsides for licensing, I do feel it puts tradesmen on a level playing field in terms of qualification, but of course, its dependent on relevant qualifications being available, not only to school leavers, but to the existing workforce too. What I like about licensing is that tradesmen appear on the radar and therefore can be monitored and tracked on performance.

In Oz, mess up and you’ll get a slap on the wrist; mess up again and you’ll get a violation on your license. Mess up a third time and you could lose your license altogether! This, for me, drives out the rogue trader element. Of course, the BiKBBI has a similar scheme preventing the migration of trouble installers; however it’s only relevant to our retail partners and the customers they serve, as we’re not a mandatory requirement in law.

The problem we have is that here in the UK, mess up and there are no consequences; just find a new customer,

change your mobile number and move onto the next ‘victim.’ Clearly, it’s not good enough and the model is evidently not working.

Conclusion Australia clearly faces similar challenges to the UK with a shortage of skills within the KBB sector both from an installer and sales perspective. Overall, the Aussie’s have greater control of home improvement operatives through local legislation, which I believe the UK would benefit from should they adopt a similar system. However, they have only introduced these measures from a legislative point of view and really do lack the specialist industry expertise that perhaps an institute would deliver.

Quite frankly, outside of gas and electrical installation and repair, there is little visibility and subsequent control over those offering home improvement services to consumers. This clearly is having a negative effect on many who invest or operate in the KBB industry.

Literally anyone can call themselves a home improvement specialist, with little regulation to prevent the incompetent and the rogues, from standing shoulder to shoulder with professional installers. That clearly isn’t good enough and it’s where Australia has an edge.

The country is screaming out for good people and is looking to the UK as a good source of employees.

Recruiting British Installers has been good for John Bourke and his business Kitchen Connections and making the move can lead to a fantastic lifestyle and earning potential as it has for ex-BiKBBI member Dean Kiss but it is a huge step to make so consider all potential repercussions.

Images: Design inspiration from Kitchen Connection

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Australia Feature

Following Damian’s visit we conducted interviews with Managing Director of Kitchen Connection, John Bourke and an ex-pat installer Dean Kiss who also works for Kitchen Connection.

John explains the business side of retailing kitchens whilst Dean reveals what it takes and what the rewards are for a BiKBBI member to have the courage to start a new life ‘down under.’

The Managing Director You’re the Managing Director of Kitchen Connection, are you the founder of the company? If so how long ago, and if not, when did you join?

I am the Managing Director of KWB Group and the co-founder, along with my Finance Director, Chris Palin. The KWB Group was formed five years ago and operates under two brands: ‘Kitchen Connection’ (www.kitchenconnection.com. au), which operates with ten showrooms in Queensland and one in New South Wales (we are opening a second in NSW in December), and our other brand, ‘Wallspan’ (www.wallspan.com.au), is located in Adelaide, South Australia and it has four showrooms; therefore, under the KWB Group we have fifteen showrooms in total.

So do you undertake all types of kitchen installations?

No, we only undertake kitchen renovations; we do not do new builds at all! We focus on what we call the ‘doit-for-me’ market, as opposed to ‘do-ityourself.’ This means that our people, 

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Australia Feature

from designers to installers, have to be extremely customer friendly and customer focussed. We are currently installing approximately 300,000 dollars of kitchens per month and the average kitchen is 18,000 dollars (£10,621 at the date of writing this article) this price excludes installation costs.

If I’ve got the right company you are mainly Queensland based, did the company originate in Brisbane?

The AKI business was a Private Equity plan of buying a kitchen business in each state in Australia and putting them under one brand and centralised manufacturing based in Brisbane. However, this did not work for several reasons; distances were too far to distribute, systems were very poor and maintenance on jobs was very costly.

I see you have a studio opened in Newcastle, do you intend to expand further into NSW? Yes, as mentioned we will be opening an additional new Showroom in NSW by Christmas and plan to open another 2 in 2018. This is an area in where we are looking to recruit installers from the UK. How do you recruit installers?

Our installers (fitters) are recruited by word of mouth and on-line recruitment similar to Reed in the UK. The big difference in Australia is that our installers only install, they do not schedule, site measure or detail kitchens. We do however, have “project management’ roles in which the installer reports (even though they are sub-contractors). Our Project Managers (we call them ‘Customer Support Managers’) do all site measuring, detailing, CAD drawing and trade scheduling. From my understanding, this

is similar to what the kitchen installers do in the UK. We are therefore currently looking for talented, hard working UK based kitchen fitters who are looking for a hugely rewarding overseas adventure!

Is there an equivalent of the BiKBBI in Australia? If not, would it benefit the industry to have one?

No there isn’t. There are industry bodies here but they are in support of the building industry. The structure of the Australian kitchen industry is very different to the UK which is very mature and consolidated with big players like Howdens, Wren etc., over here it’s the opposite. The KWB Group, with only fifteen showrooms, is the largest standalone kitchen retailer in Australia. Yes we do have multiples like Ikea and Bunnings dealing in flat packs but as for kitchen retailers who have more than 2 or 3 showrooms, we are it! This surprised Damian.

So there’s room for market growth?

Definitely! There are 8,500 registered Cabinet Makers in Australia and over 90% are 1 or 2 man backyard operations selling only around 5 kitchens a month.

So the opportunity for growth in our business is huge as we have very few large competitors.

I understand that you have employed many installers and CSM’s (Installation Managers) from the UK? Why is this, and how do you attract them, or do they find you somehow?

Because of the way we operate, we have discovered that the experience of both KBB fitters and Installation Managers in the UK to be ideal. They generally have had some form of project management experience which is essential and they  17

Australia Feature

understand IT, have good detailing are generally very KBB ‘savvy.’

We also use the UK ArtiCAD program so in some cases our employees from the UK are already competent with these skills. Another bonus for us is that many have worked for the larger retailers they clearly understand processes and procedures and quickly pick up (and add value to) what we are trying to achieve.

Our business model is similar to Magnet Kitchens so the fit for UK staff is often seamless. In contrast, if I generalise, the Australia cabinet maker who has been making and installing kitchen in an unsophisticated environment has no planning skills, no IT experience or CAD skills. The smaller sole trader businesses often do almost everything by hand.

In your experience, how do their standards compare?

The UK staff that we have brought over, or have acquired locally, are far more professional and structured in their approach to managing kitchen installations. Their work ethic is extremely high (most will work weekends if offered) and they understand what KWB is trying to achieve as a business, because they have previously worked in businesses much larger than ours.

Is it easy for an installer in the UK to adjust to different ways of doing things or materials? I ask (and I know this doesn’t necessarily apply to a KBB installer) because I know that roofing and guttering are completely different from what we have in the UK, so what about pipework for instance and ‘building regs’ and legal standards for electrical work etc.?

There are differences in cabinet construction and building practices.

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Plumbing, Gas and Electrical cannot be done by a KBB installer. Plumbing, Gas and Electrical are highly regulated and licensed areas with strict practises and legal standards required and monitored.

For example, when walls are plastered in Australia they only do the joins and not the whole wall. This is just one example of the many little differences that an installer from the UK would encounter. We spend up to 4 months in full time training for all new employees. Time is spent working with the trades and suppliers to fully understand how our business works and why it is different.

gain a pathway to permanent residency in Australia. KWB Group manages and funds all visa applications to ensure that those who qualify can successfully gain entry.

What lifestyle advice would you give a British installer considering making the move, both positive and negative?

Finally, what is your opinion of the BiKBBI having spent time with the CEO and what do you think you have learnt that could be adopted in Australia?

We are currently looking for roles in all states and each state offers a unique and wonderful lifestyle as the weather, beaches and low density living all combine to make it a very pleasant lifestyle environment. With so many UK members already in our teams, the settling in period for newcomers and their family is very easy and we ensure that there is a lot of hand holding in the first 6 months to ensure our installers from the UK are comfortable. We even offer all candidates contemplating making the move and joining us an the opportunity to call any of our staff who originated from the UK to discuss their experiences in moving and working down under for the KWB Group. The BiKBBI, CEO, Damian Walters spoke with all our UK staff (both on the retail and installation side) and he would testify that everyone is genuinely loving the overall experience and especially the company and the lifestyle. Well, no one has booked a return ticket as yet!

On the negative side migration laws have recently tightened and most applicants have now got to be under 45 years to

We are currently looking for roles in all states and each state offers a unique and wonderful lifestyle as the weather, beaches and low density living all combine to make it a very pleasant lifestyle environment.

I think the way that the BiKBBI has established installation standards and legitimising the industry has been outstanding. It is also great to see the major retailers, manufacturers and suppliers in the UK giving genuine support to the initiatives of the institute. I feel that by having this support the institute can continue to give back to its members and I believe that the membership size today is the best testament to its success.

There are so many improvements that could be made in Australia by having a similar institute. We are highly regulated in so many parts of the building industry however Australia still views kitchens, (both retailing and installation) as a trade, not an industry. Just like the UK, apprenticeships also need to be part of manufacturers and the government’s agenda in supporting and building a sustainable growth economy. Having a ‘body’ like the BiKBBI to lobby these critical issues would help enormously. . www.kitchenconnection.com.au 21

Australia Feature

How has Kitchen Connection been able to help you relocate?

The Installer So how did you come to be working in Australia Dean?

My wife Lorraine and I chose to emigrate when our son Paul, decided to leave the British army and join the Aussie army, partly because his wife, Sarah, has brothers and sisters already settled in Australia. It was a huge decision to make as Lorraine was a degree level in nursing in the UK and I owned a successful small business.

Apart from Paul, we have two other children, Kallam and Amy; Kallam is exforces and currently working abroad and Amy, who visited us in March this year.

The long term plan is to hopefully move the entire tribe over!

I can’t stress enough just how good Kitchen Connection has been to me and my family, the support and encouragement is top notch. John, Chris, Dave Cumming and Guy Freeman have all been excellent. They have made the transition into the Australian kitchen industry a great experience, and as smooth as possible. It makes sense sometimes to simplify things; for instance, remind yourself that kitchen fitting is the same wherever you are in the world … fill a space with a series of boxes, it’s the difference in the product that needed most of the training really. The company induction lasted 6 weeks and I spent time in every role from back of house to front to get an all round understanding of what makes the company tick.

Is kitchen design technology (CAD) widely used in Australia?

Kitchen Connection has bespoke software called ‘My Kitchen Link,’ (MKL) which is a hub for all departments to enter and exchange information other departments, from there, all interaction with customers is recorded, right down to the finest details of the end product. It saves a huge amount of time and virtually eliminates errors.

How do working conditions differ to the UK?

Once you made the decision to emigrate was the process easy?

Installers in Oz have it easy, or so I keep telling them!

It’s actually not easy to be accepted and sponsorship through my trade skills was the only way to be admitted; even then there were many hoops to jump through and I’m still having to tackle some technical legal issues to be honest.

Most of the worktops are stone which goes to a stone mason, if its laminate they come pre-cut and edged, the plans and support they get are first class (especially from me! ha ha). All the kitchen appliances are installed by plumbers and 

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Australia Feature

electricians and trade licensing laws are different over here so it really is quite easy. On a negative(if you can call it a downside,) it can get really hot!

Earning potential is good too with our top guys earning $120-150k a year, which at current exchange rates is around £80100k!

Have you and your family settled yet?

We have settled in really well and in fact Damian came back to our house to have a look and get a feel for the place and lifestyle. We have now moved to a fantastic area called Samford Village, in Samford Valley; it’s just an hours drive north from the Sunshine Coast, an hour south and we are on Surfers Paradise and the Gold Coast! Every weekend we are doing something as decent weather’s almost certainly guaranteed, we camp on 

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Australia Feature

the beach or inland at a creek, and spend days just days lazing on the beach or a lively weekend on the Gold Coast.

Do you have any advice to anyone considering making a similar move?

For anyone reading this and considering following in my footsteps they should realise that when I applied for my visa my BiKBBI certification went a long way to reassuring immigration authorities that I met their requirements, especially as I was a member for a long time, so keep your membership up-to-date. I have since gained more Australian qualifications for my permanent residency, again with full backing from Kitchen Connection.

Potential emigrants should be aware that it can be very hard meeting requirements, expensive and you will have to be prepared to adopt a different lifestyle.

Undoubtedly, you will miss family and friends; however the rewards are massive as the weather is so much more friendly to a great lifestyle and it’s a fantastic place for a young family to move to as the sporting facilities in every community are unbelievable, well organised and all year round of course.

My advice to anyone wishing to move here is: do your homework and always look for a way in as ways out are too easy!

So when did you first hear of the BiKBBI? It was called the iKBBI back then and it was just after ‘MKD Holdings’ went under (around 2005 I think) and ‘Tradesman Solutions’ wanted a few installers to honour the finance contracts so they contacted me for an initial short term fix. They had just started to undertake Bathstore work and it was a condition of the company’s for their installers to become members of the iKBBI. 26

Did you view that as a good thing at the time?

I’ll be honest and I told Damian when he visited us in Australia recently, that back then, I thought, ‘here we go again, another trade membership just to get work,’ and other friends I know in the trade thought the same. However, I took the plunge and met the criteria and renewed every year until I emigrated. 

Australia Feature

Were you comfortable renewing at the time?

After looking into the ikbbI a little more after a year or so it was obvious that the organisation was beginning to grow and become more recognised, I was able to use it to gain work, and it became a sales tool that I offered to companies and individual clients to reassure them of my credentials.

What are your impressions now that you have met and spent time with Damian Walters the BiKBBI CEO? Firstly, I must say that I had never previously met Damian but I had seen pictures of him from past issues of THE Installer Magazine while in the UK, but when I picked him up from the hotel I honestly didn’t recognise him, what a transformation in his appearance, inspiring!

I still follow the BiKBBI as it is now on twitter and whenever I see an article in The Installer Magazine that is relative to my employers (Kitchen Connection) I forward it to John Bourke and Chris Palin.

I would like to think that some of these articles have helped pave the way for Damian to be invited over.

Finally, do you think a BiKBBI style organisation could work ‘down-under’?

I’m sure with a little creativity something could be done. Currently there is the government run QBCC where installers have to be registered, with the BiKBBI now being government backed in the UK I think that there could be some sort of involvement, if the QBCC were to cooperate. www.kitchenconnection.com.au 27

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