The latest data analysis by Insight Data shows a dramatic spike in builders’ merchant insolvencies for January 2025 – an increase of more than 170%.

Rising from seven in December 2024 to 19 in January, the number of insolvencies is cause for concern at a time when the sector is also showing some buoyancy.

MKM, an independent merchant, recently announced plans to expand its operations across the South West of England and Wales with four new branches opening in Plymouth, Bridgend, Bangor and Cheltenham, creating 74 jobs.

Further investigation into the builders’ merchants insolvencies reveals that those operating within North West England and Greater London were hit the hardest, with each region reporting five insolvencies – a whopping 53% increase in the total number of companies that shut up shop in January.

Other areas affected include the Southern Counties, South West, Yorkshire, Wales and Scotland highlighting that builders’ merchants up and down the country are struggling to overcome trading conditions.

Alex Tremlett, Commercial Director at Insight Data, said: “The substantial rise in builders' merchant insolvencies during January is concerning and highlights the ongoing challenges facing the sector.

"While we're seeing some positive movements in the market, with independent merchants expanding their operations, it's clear that many businesses are still struggling with the current economic climate.

"This contrasting picture emphasises the importance of having access to accurate market intelligence, enabling businesses to identify both risks and opportunities in these challenging times."

The latest findings from Insight Data demonstrate the value of comprehensive market analysis in understanding the rapidly evolving construction landscape. While some builders’ merchants are facing difficulties, others are identifying opportunities for growth, suggesting a complex market situation as we move into 2025.