Analysis by marketing data specialist Insight Data shows the number of builders’ merchant insolvencies jumping from 14 in September to 22 in October this year.

This substantial 57% increase highlights a challenging month for builders’ merchants despite having previously shown signs of improvement, with the number of insolvencies significantly coming down in September compared to August 2024.

Additional findings indicate that October was also a difficult period for main contractors, with a turnover of more than £5 million, as three firms closed their doors.

However, it is not all bad news, as there was a slight improvement for small builders who saw a marginal reduction in insolvencies, dropping from 106 in September to 102 in October.

Alex Tremlett, Commercial Director at Insight Data, said: “Unfortunately, these figures don’t paint a positive picture for builders’ merchants as we approach the end of 2024 and it’s hardly surprising. With rising operational costs, supply chain issues and broader economic challenges, merchants are continuing to navigate ongoing pressures.

“While it’s encouraging to see a slight improvement with small builders, the overall trend indicates that businesses must remain vigilant and adaptable as they continue to battle these unpredictable market conditions.”