Insight Data reports a 32% reduction compared to the previous month.

Leading construction industry marketing data specialist, Insight Data, reports a 32% reduction in builders’ merchant insolvencies for February 2025, compared to the previous month.

The latest analysis shows the total number of builders’ merchants shutting their doors decreased from 19 in January to 13 in February, a welcome change following a concerning 170% spike reported at the start of the year.

The data supplied by Insight Data also highlights an even better improvement for main contractors (with a turnover above £5 million), as insolvencies plummeted by an incredible 80% - from five cases in January to just one in February 2025. This positive trend suggests that the sector may be stabilising after a turbulent start to the year.

Alex Tremlett, Commercial Director, said: “February’s reduction in insolvency numbers is encouraging, particularly after January’s alarming spike. While 13 builders’ merchant collapses are still significant, this is an improvement compared to the previous month’s report.

“Our research shows that unlike historical data, there isn’t a specific region which has been hit the hardest. Instead, February analysis shows that insolvencies were split equally across the UK – with each major area accounting for 15% of the total number of builders’ merchants who ceased trading.

“Although the reduction in insolvencies is good news for builders’ merchants and main contractors, we’d still recommend throwing caution to the wind as businesses within the construction sector continue to navigate the changing economic landscape.

“If these figures illustrate one thing, it’s that real-time market intelligence is so vital. It enables businesses to spot both warning signs and new opportunities in what remains to be a challenging and ever-changing market.”

Insight Data provides accurate and reliable marketing data to companies operating within the construction sector. Plus, by offering its customers exclusive access to powerful sales and marketing CRM software, businesses can make informed decisions and identify growth opportunities even in challenging market conditions.

To read the latest Insight Data insolvency report in full visit: https://www.insightdata.co.uk/insolvency-reports/