BMBI: Merchants’ August sales fall -5.6% year-on-year in wash out summer

The latest Builders Merchant Building Index (BMBI) report shows builders’ merchants’ value sales in August were down -5.6% compared to the same month in 2023. Volume sales dropped -5.7% with little movement in price (+0.2%). With one less trading day this year, like-for-like value sales were down -1.1%.

Year-on-Year

Compared to August 2023, seven of the twelve categories performed better than Total Merchants with Services (+2.5%), Workwear & Safetywear (+2.3%), and Decorating (+0.2%) increasing. The two largest categories – Heavy Building Materials (-6.1%) and Timber & Joinery Products (-8.2%) – were weaker than Total Merchants. Renewables & Water Saving was the worst performing category, falling -30.8%.

Month-on-Month

August total value sales were -8.1% lower than July. Volume sales fell -9.2% and prices increased +1.2%. All categories sold less, with three less than Total Merchants: Services (-4.4%), Timber & Joinery Products (-7.4%) and Decorating (-7.5%). Plumbing Heating & Electrical (-10.0%), Renewables & Water Saving (-11.3%) and Workwear & Safetywear (-14.7%) were the worst performing categories. With two less trading days this month, like-for-like value sales were marginally higher (+0.7%).

Latest 12 months

In the 12-month period between September 2023 and August 2024, total value sales were down -5.7% compared to the same period the year before (September 2022 to August 2023). Volume sales were -8.5% lower and prices increased +3.1%. With three more trading days in the most recent 12-month period, like-for-like value sales were -6.8% lower. The two largest categories – Heavy Building Materials (-7.5%) and Timber & Joinery Products (-9.0%) – declined by more than Total Merchants. Workwear & Safetywear (+10.4%) increased the most.

Gordon Parnell, Sales Director for British Gypsum (part of Saint-Gobain Interior Solutions) and BMBI’s Expert for Drylining Systems, comments:

“The Labour government’s plans to meet the housing shortage by building 1.5 million homes in five years landed positively, with a bounce in housing shares after their win at the ballot box.

“It’s hoped the news will bolster confidence across the supply chain, from consumer to manufacturer, but increasing build programs and planning reform will take time, and any near-term uplift is unlikely to be experienced in 2024.

“The Federation of Master Builders, among others has raised concerns about the impact the skills shortage will have on housing plans, without a long-term training and building skills program to ensure an effective, skilled workforce exists.

“We all have a role to play in this, to equip both those starting their career in the industry and established professionals with the essential skills needed for current and future roles.

“Across the UK, we continue to support college students and apprentices to ensure they have access to high-quality resources, technical support and tutor training.

Push for net zero

“Fulfilling the needs of the Future Homes Standard and meeting the push for net zero will continue to dominate the construction industry, as we wait for the new Government to confirm its net zero strategy, and how that may impact the retrofit sector.

“British Gypsum continues to gain momentum on our sustainability roadmap, with the launch of our lower embodied carbon metal profiles. Branded Gypframe Carbon Low, the new metal profiles are made from steel manufactured using an electric arc furnace rather than a blast furnace.

“We have also partnered with The Pallet LOOP, distributing our bagged plaster products nationwide on the distinctive green coloured reusable pallets. From July, our plasterboard deliveries began to transition too. This marks a significant milestone, and we encourage customers to join our drive to reduce pallet waste in UK construction.”

BMBI Experts speak exclusively for their markets, explaining trends, issues and opportunities. For the latest reports, Expert comments and Round Table videos, visit www.bmbi.co.uk.

Visit the BMBI website

Follow @TheBMBI

t: 01453 521 621
e: [email protected]

Visit Supplier's page