Market pressures are being felt nationwide, though some areas appear to be weathering the storm better than others

Leading construction industry marketing specialist, Insight Data, has reported a 15% increase in builders' merchant insolvencies, with numbers rising from 13 in April 2025 to 15 in May 2025.

The latest analysis suggests specific regions are facing more challenging trading conditions compared to other areas in the UK. Greater London, Yorkshire and the South West were hit hardest, each accounting for 20% of all reported insolvencies during the month, while 13% of closures took place in the Southern Counties.

The Home Counties, Northern Counties, Northern Ireland and East Midlands didn’t escape unscathed as each area represented 7% of all builders’ merchant insolvencies in May. This highlights that market pressures are being felt nationwide, though some areas appear to be weathering the storm better than others.

The latest results also uncovered a concerning trend for main contractors with insolvency figures jumping from one in April to two in May 2025 – a 100% increase that emphasises growing pressures across the wider construction sector.

Alex Tremlett, Commercial Director at Insight Data, said: “While the 15% rise in builders' merchant insolvencies is concerning, what's particularly striking is the regional differences we’re seeing. With Greater London, Yorkshire and the South West each representing a fifth of all closures, it's clear these areas are facing specific challenges.

“The spike in main contractor closures is also worrying as it suggests that some larger firms are struggling to navigate current market conditions. While May’s figures are lower compared to previous months, insolvencies among this group creates a ripple effect throughout the supply chain, potentially impacting builders’ merchants who specifically rely on these contractors for repeat business.”

Throughout 2025, Insight Data’s findings have changed significantly month on month, demonstrating the volatility of current market conditions and the importance of real-time market intelligence for businesses looking to navigate these turbulent times.

As specialists in construction marketing data, Insight Data produces a comprehensive monthly insolvency report, helping merchants and suppliers to identify risks and opportunities in this rapidly evolving marketplace. To access the latest Insight Data insolvency report, visit: https://www.insightdata.co.uk/resources/downloads/