From Timber to Tech: How UK Builders’ Merchants Are Evolving

The UK builders’ merchants’ sector is a cornerstone of the construction industry, contributing over £40 billion annually to the economy and supplying up to 85% of the nation’s-built environment. This report highlights the market’s resilience amid economic uncertainty and shifting consumer trends. Builders’ merchants have diversified their product offerings, expanding beyond traditional Heavyside products to cater to a growing DIY market, while still supporting key sectors like housebuilding and infrastructure.

To celebrate the launch of the Builders Merchants Market Report – UK 2024-2028, Editor of the report, Anne Williams has shared some of the insight found within the report below.

Market Value

Market value for UK builders’ merchants was worth an estimated £19.75 billion in 2024, up by 3% from the previous year although annual growth has slowed of late.

Construction Output

In 2024, builders’ merchants accounted for almost 9% of total UK construction output, down slightly from more than 10% during 2020.

Product Mix

Timber and glazing products accounted for a leading 18% of all materials sold via builders’ merchants in 2024, ahead of HVAC equipment and cement and plaster.

Builders’ Merchants Sales

At 40% or above, the share of total sales taken by builders’ merchants is highest for plumbing and drainage products and HVAC equipment.

Future Trends

The best performing merchants of the future are likely to be those embracing digital technology and e-commerce, to cope with the challenges posed by online channels.

Editor’s Quote

“Competition within the sector is intensifying, especially from online platforms and home improvement retailers. Digital transformation is reshaping customer behavior, with many using e-commerce to compare prices and place orders, though physical branches remain essential for trade professionals. Supply chain disruptions and material shortages, have also driven up prices and impacted project timelines, underscoring the need for greater local manufacturing to mitigate reliance on imports.

Environmental legislation aimed at reducing carbon emissions is increasingly influencing the market. Builders’ merchants are central to the adoption of energy-efficient materials and retrofitting projects as the UK moves towards net zero. Despite the competitive and economic challenges, the sector is poised for continued growth. Merchants that embrace innovation, sustainability, and evolving market dynamics will be best positioned to thrive in the coming years.”