5th March 2025

The latest Builders Merchant Building Index (BMBI) report reveals builders’ merchants’ value sales for Q4 2024 were down -0.5% compared to Q4 2023, as an increase in volume sales (+2.3%) was countered by a fall in prices (-2.7%). With one additional trading day in Q4 2024, like-for-like value sales (which take the number of trading days into account) were -2.2% lower.

Four of the twelve categories sold more in Q4 2024, led by Tools (+8.8%). Value sales of the two largest categories – Timber & Joinery Products (-2.6%) and Heavy Building Materials (-0.2%) – were down year-on-year. Renewables & Water Saving (-8.9%) was the weakest category.

Quarter-on-quarter builders’ merchants’ value sales for Q4 2024 were -13.9% lower than the previous three-month period. Volume sales tumbled -15.6%, while prices were slightly raised (+2.0%). Value sales in just three categories were up compared to Q3 – these were Plumbing Heating & Electrical (+2.7%), Workwear & Safetywear and Renewables & Water Saving (+1.5%). Seasonal category Landscaping (-30.9%) was the weakest. With four less trading days in the most recent period, like-for-like value sales were down -8.2%.

Quarter 4 total value sales were given a boost by December sales, which were up +3.0% year-on-year. Volume sales climbed +7.4%, while prices fell -4.1%. Seven of the twelve categories sold more in value sales, led by Landscaping (+15.9%), Services (+8.8%), Tools (+8.6%) and Heavy Building Materials (+3.9%). Timber & Joinery Products (+0.1%) was flat.

December value sales were weak compared to November (-32.5%) but this is in line with seasonal trends.

Total value sales for January to December were -4.1% lower than the same period in 2023. With three more trading days this year, like-for-like value sales were down -5.2%. Volume sales for 2024 were down -4.3% compared to last year, and prices were largely inline (+0.2%). Five of the twelve categories sold more in value, with Workwear & Safetywear (+10.8%), Tools (+6.7%) and Services (+3.0%) faring the best. Renewables & Water Saving (-24.0%), Timber & Joinery Products (-6.4%) and Heavy Building Materials (-5.5%) were weakest.

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Mike Rigby, MD of MRA Research who produce this report, said, “The latest GB construction data from ONS shows a slight increase (+0.5%) in output in Q4 despite a -0.2% fall in December, and overall a modest +0.4% increase in output for 2024 compared to 2023. While this is the fourth consecutive year of annual growth, it may not feel like it for Merchants who were actually down -4.1% on value sales year-on-year.

“Whether things change for the better in 2025 will hinge on a number of factors, including restoring consumer confidence to encourage spending on property and home improvement projects. Inflation may have dropped to 2.5% in December and there was also a cut to interest rates, but prices and outgoings are still considerably higher than they were pre-Ukraine war, putting continued pressure on household budgets.

“The latest Consumer Confidence Index from NIQ GfK shows a drop in all metrics at the turn of the year with the biggest drops being to people’s perception of the general economic situation over the next 12 months (-8). January’s overall index fell -5 points to -22 – the lowest it has been in over a year.

“Changing hearts and minds about how and where consumers spend their limited disposable income may require a change of tack. A report into what matters to today’s consumers, published by Capgemini Research Institute, showed that the cost-of living crisis was still driving people to seek out more affordable options and that sustainability was a critical factor in the purchasing decisions for 64% of those surveyed. Social media is an increasingly influential factor, particularly for Gen Z consumers.

“Interestingly, generative AI is now influencing more buying decisions with 58% of people choosing GenAI recommendations over traditional search engines. Demand for quick delivery has also surged.

“If Merchants are to earn a bigger slice of the pie, particularly while trading conditions remain tough, they may need to shake up their approach to engage with the way modern consumers – including trades and end users – want to buy.”

Download the full report here.