This result comes as positive sales growth has been reported across the industry.
Leading construction industry marketing specialist, Insight Data, has reported a 14% decline in builder’s merchant insolvencies for August 2025, with numbers dropping from 14 in July 2025 to 12.
The latest analysis shows a slight improvement in a sector that has experienced instability throughout 2025 and comes as new Builders’ Merchant Building Index data reveals positive sales growth for the industry.
Despite two years of consistent declines, the encouraging sales data from the BMBI highlights improvements for the second successive quarter with sales increasing by 2.8% year-on-year. Quarter-on-quarter growth has also been particularly strong, according to BMBI which reports total value sales in Q2 of 2025 have risen by 11.7% compared to Q1.
Regional data analysis from Insight Data shows Greater London and the West Midlands were affected the most by August’s closures, each accounting for 25% of all reported insolvencies with three merchants each. The North West and Southern Counties followed closely with two closures (17%), while the South West and Wales each recorded one insolvency, accounting for 8% of the total insolvencies.
Alex Tremlett, Commercial Director at Insight Data, said: “While it’s easy to get swept away by the national trends that have been reported this month, it’s important to remain cautious given the dramatic month-to-month insolvencies we’ve tracked throughout 2025.
“There’s no doubt that August’s 14% reduction in builders’ merchant closures is welcome news, but our regional analysis shows specific areas are being hit harder than others and continue facing particular challenges. This contrasting picture of improving sales alongside regional pressures highlights the value of location-specific market analysis.
“Looking ahead, companies must continue to rely on accurate market intelligence to tackle these complex conditions and to identify opportunities for sustained growth.”
Insight Data produces a comprehensive monthly insolvency report helping merchants and suppliers make informed strategic decisions. To access the latest report in full, visit: https://www.insightdata.co.uk/insolvency-reports/
