Sales of building materials down as industry challenges continue to mount

Latest News Tue, Aug 6, 2024 6:02 AM

The latest Builders Merchant Building Index (BMBI) report, published in July, shows builders’ merchants’ value sales in May were down -5.2% year-on-year. Volume sales fell -7.0% and prices edged up +2.0%.

With one more trading day this year, like-for-like value sales were down -9.7%.

This Builders Merchant Building Index (BMBI) report contains data from GfK’s ground-breaking Builders Merchants Panel, which analyses data from over 88% of generalist builders’ merchants’ sales throughout Great Britain.

Emile van der Ryst, Senior Client Insight Manager - Trade, GfK, said: “The start to 2024 has been challenging, as could be expected. Slowly but surely inflation has started coming down, while the UK moved out of a recession again, with the Bank of England recently claiming a corner has been turned.

“The economy is increasingly becoming a key battleground ahead of a yet unannounced general election to take place before the end of January 2025. The construction sector plays an important part in the economy, but with a lack of focused government input for the sector before the elections, indications are clear that another difficult year is ahead.

“The outlook for Q2 remains bleak, and as usual will be dependent on good weather, especially as March was a wetter than average month across most of the UK. There is an expectation in the sector that growth will only return in the latter half of 2025, so for now it’s very much a case of battening down the hatches.”

Compared to May 2023, nine of the twelve categories performed better than Total Merchants year-on-year, with Workwear & Safetywear (+18.8%), Decorating (+3.7%) and Kitchens & Bathrooms (+2.0%) faring the best. Two of the largest categories – Timber & Joinery Products (-6.9%) and Heavy Building Materials (-7.7%) – declined more than Total Merchants. Renewables & Water Saving was the weakest category (-37.1%).

May total value sales were +3.0% higher than April. Volume sales increased +2.2% and prices were marginally higher (+0.8%) month-on-month. Half of the twelve categories sold more, with two of the largest categories - Landscaping (+12.7%) and Heavy Building Materials (+3.7%) – leading the pack. Plumbing Heating & Electrical (-5.8%) and Renewables & Water Saving (-18.4%) sales contracted the most.

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