Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
The CLC’s Material Supply Chain Group first report of 2026 offers a bleak assessment of market prospects according to a statement from co-chairs John Newcomb, CEO of the Builders Merchants Federation, and Peter Caplehorn, Construction Products Association CEO.
The assessment claims that the UK construction industry continues to face significant challenges, with construction output falling by 1.3% in November. Concrete order volumes nationally have decreased by around 28% over the past four years, with London, usually the busiest market, having experienced a 39% decline in the last two years.
There are no notable product availability issues, and in the current market, supply often exceeds demand. For example, brick manufacturers who invested in capacity when the government announced its housing ambition now hold large stock levels. While they are well-placed for an eventual recovery, given the subdued demand, they are reassessing how much production to maintain.
The ongoing weakness in demand, rising costs, and cash flow pressures have taken their toll on the supply chain, resulting in a steady stream of administrations in recent months.
The statement claims the main issues behind construction’s poor performance are structural, with delayed investment decisions, increased client caution, ongoing economic volatility, and a lack of consumer confidence having all contributed to a notable drop in new orders. The group believes sustained recovery will depend heavily on renewed investment in new homes and residential RMI, and that targeted stimulus measures are now essential to restore momentum, support job creation, and unlock latent demand for materials and labour.
