Builders’ Merchants set for slow growth

A recent report from MRA Building Market Reports, forecasts gradual growth from 2026 to 2030.  The report, featured in the Builders’ Merchant Journal and Builders’ Merchant News magazines suggests a growth rate of 1% this year, then 2% in 2027, rising to 4% in 2028, before dropping slightly in the last two years of the period.

The report also highlights the challenging financial position many Builders’ Merchants are facing with declining profit margins in recent years, which it states could lead to further structural changes in the sector in 2026.  The single biggest challenge quoted by the companies surveyed was “squeezed margins” followed by “online competition” and “supplier price rises”.

The report identified that there are many major construction projects waiting to go ahead in infrastructure, housing and offices, which should impact in 2026 and 2027, provided that general economic conditions and confidence levels improve.

Reflecting on the report, Val Gardner, Managing Director of Winster Limited, the leading hose and accessory company says “We are optimistic that there will be a growth in construction activity, which will drive demand in the Builders’ Merchants and other sectors.  In the meantime, we will continue to work closely with our suppliers and customers to minimise cost increases and ensure we all benefit from opportunities that emerge through 2026 and beyond.”