The rise completely contrasts with the short period of improvement reported in February.
Leading construction industry marketing specialist, Insight Data, has reported a dramatic 69% increase in builders’ merchant insolvencies for March 2025, compared to the previous month.
The latest analysis shows that last month 22 builders’ merchants ceased trading, up from 13 in February 2025. This significant rise in insolvencies completely contrasts with the short period of improvement reported in February, where figures showed a substantial 32% decline compared to January - highlighting the continued volatility of the market.
The data emerges as industry giant Travis Perkins announces troubling financial results which saw its operating profit drop by a devastating 98.75% to just £2 million from £161 million in 2023.
Other troubling results for the sector involve main contractor insolvencies, as figures for companies with a turnover of more than £5 million have risen from just one closure in February to four in March 2025.
Alex Tremlett, Commercial Director at Insight Data, said: “The rise in builders’ merchant insolvencies in March is concerning for the sector, especially following the more positive results reported in February.
“With 22 merchants closing their doors and four larger main contractors going bust in a single month, we’re unfortunately witnessing significant issues across the sector. Combine this with the challenges faced by major players, like Travis Perkins, it’s clear these pressures are affecting businesses of all sizes.
“In this unpredictable environment, access to real-time market intelligence has never been more crucial. Companies need accurate data to identify the latest risks and opportunities to continue successfully navigating these turbulent market conditions.”
As specialists in reliable and highly accurate construction marketing data, Insight Data allows its customers to target key decision makers within the sector to boost their sales and marketing results.
To access the complete Insight Data Insolvency Report, visit: https://www.insightdata.co.uk/insolvency-reports/
