BMBI: October Merchant sales rally with a +7.3% month-on-month increase

The latest Builders Merchant Building Index (BMBI) report shows builders’ merchants’ value sales in October were up +1.2% compared to the same month last year.

Volume sales climbed +2.7% while prices slipped -1.4%. With one additional trading day this year, like-for-like value sales (which take trading day differences into account) were down -3.2%.

Year-on-Year

Compared to October 2023, nine of the twelve categories sold more, and six did better than Total Merchants with Tools (+14.3%), Workwear & Safetywear (+10.1%), and Services (+6.0%) leading the field. The two largest categories, Heavy Building Materials (+1.1%) and Timber & Joinery Products (-1.0%), were both weaker than Total Merchants.

Month-on-Month

October total value sales were +7.3% higher than September. Volume sales were up +6.5% and prices also edged up +0.7%. All bar one of the twelve categories sold more, with Renewables & Water Saving (+33.3%), Miscellaneous (+16.0%) and Plumbing, Heating & Electrical (+15.3%) the top performers. Heavy Building Materials and Timber & Joinery products were marginally ahead of Total Builders Merchants, at +7.4%. Seasonal category Landscaping (-2.9%) was the only category to sell less. With two more trading days in October, like-for-like value sales were down -2.1%.

Latest 12 months

In the 12-month period between November 2023 and October 2024, total value sales were down -4.8% compared to the same period the year before (November 2022 to October 2023). Volume sales were -6.3% lower and prices increased +1.6%. The two largest categories – Heavy Building Materials (-6.5%) and Timber & Joinery Products (-7.4%) – declined by more than Total Merchants, while Workwear & Safetywear (+12.9%), Tools (+5.8%) and Decorating (+3.3%) increased the most. With three more trading days in the most recent 12-month period, like-for-like value sales were -5.9% lower.

Krystal Williams, Managing Director for Pavestone and BMBI’s Expert for Natural Stone & Porcelain Paving commented: “Quarter three started with the outcome of the General Election, and while we had hoped for an uplift in the market once the new government was appointed, this didn’t happen. Labour wasted an opportunity to boost business and consumer confidence with their warnings of tough times ahead, and this affected our RMI customer base.

“Many of the high-end landscapers we work with have had work put on hold as customers awaited the outcome of the Autumn Budget statement. Now the budget is out, people know the impact the changes will have on their finances, and there will be many more customers choosing to keep money in the bank while the interest rates are still high rather than spend on garden improvements in the short term, at least.

‘Positive from Q3’

“That said, there was one positive from Q3 – the turnaround in shipping prices. A drop in global demand meant that container prices have fallen sharply and as a result, Indian porcelain and sandstone have fallen in price too. To capitalise on low shipping prices, we are extending our range of products from India for 2025, and many of our merchant customers are placing large orders to stock up for the year ahead.

“In terms of products, dark grey paving sales continue to decline both here and in Europe, with consumer tastes shifting towards neutral colours like cream, light grey and greige. Products to create unique features within an outdoor space, such as wall or step cladding and mosaic paving, are also trends to watch for in 2025.

“The market may be down now, but we believe that things will pick up next year, with a cracking pre-season in Q1 2025, and a return to a more buoyant RMI market in the spring.”

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.

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