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# Builders' Merchants Face Sales Decline Amid Rising Prices
- URL: https://www.industrialbriefs.com/builders-merchants-sales-decline/
- Published: 2026-09-22T15:00:27.000Z
- Updated: 2026-09-22T15:00:48.000Z
- Description: Builders' merchants face a 1.2% decline in sales by value in Q2 2026, with prices rising 5.8%, highlighting challenges in the construction industry, particularly in housebuilding.
- Author: IndustrialBriefs
- Tags: construction, #enriched

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The latest Builders' Merchant Building Index reveals a challenging landscape for builders' merchants, with sales by value dropping 1.2% year-on-year in Q2 2026, while prices surged by 5.8%. This trend signals ongoing challenges in the construction industry, particularly affecting housebuilding sectors.

**What Happened**  
Sales at builders' merchants showed a concerning decline in volume, down 6.6% compared to the previous year, even as prices increased. The data, provided by the Builders' Merchant Building Index, highlights that only three out of twelve product categories saw an increase in sales by value. Services saw the highest increase at 7.3%, followed by Workwear & Safetywear at 4.5%, and Miscellaneous items at 2.3%. However, core categories like Heavy Building Materials and Timber & Joinery Products failed to perform, with the former dropping by 2.6% and the latter remaining flat. Renewables & Water Saving products experienced the most significant decline, down 3.8%.

In June 2026, like-for-like sales by value were 2.5% lower than the previous year, with volume sales plummeting by 10.0%, despite price increases of 8.4%. Notably, even with an extra trading day in June 2026, total value sales were only up 2.2% year-on-year, indicating a challenging market environment.

Mike Rigby, Managing Director of MRA Research, notes, "Overall construction output is anaemic, with a marginal increase of 0.3% in Q2 output compared to Q1, but still 2.0% lower than Q2 2025." Infrastructure new work was a bright spot, growing by 1.9%, yet [the overall sector continues to face obstacles](https://www.industrialbriefs.com/unlocking-building-data-aecm-leaders/), particularly in housebuilding where new home registrations fell 4.0% year-on-year due to cost pressures and geopolitical uncertainties.

**What This Means for Your Business**  
For AECM professionals and government contractors, these findings underscore a need for strategic adjustments. The decline in sales and the increase in prices could pressure profit margins, necessitating a reassessment of procurement strategies and supply chain management. Companies should explore diversification into categories showing growth, such as Services and Workwear & Safetywear, to mitigate risks.

Furthermore, the rising costs emphasize the importance of compliance with evolving standards like CMMC and NIST to secure contracts. Federal funding opportunities may be available for projects in growing sectors like infrastructure, offering avenues for competitive positioning and potential ROI.

**What US Operators Should Watch**  
Decision-makers need to keep an eye on federal deadlines and procurement windows, particularly in infrastructure projects, which have shown growth. Monitoring regulatory changes and audit dates for CMMC compliance will be crucial to maintaining eligibility for government contracts. Additionally, keeping abreast of market trends and adjusting bids accordingly could provide a competitive edge in a fluctuating market.

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*Source: https://www.theconstructionindex.co.uk/news/view/sales-down-prices-up-at-builders-merchants.* [*Read the original story ->*](https://www.theconstructionindex.co.uk/news/view/sales-down-prices-up-at-builders-merchants?ref=industrialbriefs.com)