Insight Data analysis shows builders’ merchants in the Home Counties were hit hardest.
Insight Data, the leading construction industry marketing data specialist, has reported that builders’ merchant insolvencies remained stable in September 2025 with just 12 closures in total.
The latest analysis, which reveals insolvency numbers have neither improved nor worsened since August 2025, comes at a time when broader construction sector indicators are pointing towards potential improvements.
Regional data from Insight Data shows builders’ merchants in the Home Counties were hit hardest in September, accounting for 42% of all reported insolvencies, with five companies ceasing operations. The West Midlands followed with three closures (25%), while Greater London recorded two insolvencies (17%). The North West and Wales each experienced one closure, representing eight per cent of the total.
Alex Tremlett, Commercial Director at Insight Data, said: “September’s figures suggest we may be reaching a turning point, with insolvency numbers holding steady rather than increasing, like previous months. This aligns with wider industry data showing that construction downturn, although still present, appears to be losing momentum.
“What’s particularly interesting is the regional distribution we’re seeing. The Home Counties account for nearly half of all closures signalling that geographic location continues to play a significant role in determining which merchants can weather these challenging conditions.
“While September’s stable insolvency figures don’t necessarily signal recovery, they could show we’re entering a period of stabilisation before conditions improve.”
The construction sector continues to face many pressures, with the PMI report highlighting ongoing challenges ahead of the Autumn Budget. However, there are glimmers of hope, with some construction companies reporting expectations of a boost from infrastructure spending, energy sector demand and lower interest rates.
