The number of businesses shutting shop fell from 22 in March to just 13.

New figures released by leading construction industry marketing specialists, Insight Data, reveal a significant 41% drop in builders’ merchant insolvencies during April 2025. 

According to the latest analysis by Insight Data, the number of businesses shutting shop fell from 22 in March to just 13 in April 2025 which is positive news for the sector that has experienced several months of instability.  

Further research also shows an even geographical split of builders’ merchant insolvencies across the UK, suggesting that no area has entirely escaped ongoing market pressures. It also highlights that this improvement isn’t concentrated in specific regional areas but instead reflects a broad national trend. 

This positive news also extends to main contractors, with insolvencies among firms with turnovers exceeding £5million reducing from four to just one in April 2025. 

Alex Tremlett, Commercial Director at Insight Data, said: “April’s figures are encouraging news for the builders’ merchant sector after a particularly challenging start to the year. The 41% drop suggests we may see some stabilisation in the industry although we can’t be certain. 

“While the reduction in insolvencies provides some relief, we have tracked substantial month-to-month variations which demonstrates why businesses need access to timely and accurate market intelligence to respond effectively to rapidly changing conditions.” 

These latest results come at a time when a key sector player, Independent Builders Merchant Group, announced the launch of a companywide restructuring to build a stronger financial foundation to support future growth and resilience. 

“It’s incredibly interesting to see how different businesses are responding to market pressures, where some are forced to closed completely, others are putting measures in place to strengthen their position in the marketplace,” added Tremlett.