There can be few construction material categories that closed the 4^th quarter of 2025 with a positive spin. The Heavy Building Materials segment remained in the same state of malaise seen in the previous quarter. Unfortunately, the key stats don’t lie and without any significant sustained stimulus from consumer confidence or macroeconomic events then it would have been foolish optimism to expect any great change at the coal face.

With flat industry forecasts for 2026, a stimulus is required for housebuilding, with a focus on the public housing sector, the demand for which does not rely on consumer confidence or interest rate trends. If the Government is serious about digging the country out of the housing crisis affecting so many regions, then a radical change in the funding model is required to enable both Housing associations and Councils.

In 2024, a Centre for Economics and Business Research report on the effects of building 90.000 social homes in Great Britain projected a combined socioeconomic value estimated to be £51.2 billion. This would create a total of 350,000 jobs and deliver a net £12 billion positive return to the exchequer over 30 years.

Unfortunately, a lack of vision and our system of short-term planning mean this type of intervention remains a pipe dream (pardon the pun!)

In the meantime, the merchant industry appears to be coming to terms with the probability that 2026 will be a repeat of 2025. Historically this trading pattern has exposed the industry to the dangers of chasing volume and the inevitable consequences of a race to the bottom. Merchants and manufacturers are still at risk from increasing operating costs, and uncertainty still surrounding tariffs and energy costs.

It will take steady hands and a focus on adding value throughout the entire supply chain, for the industry to avoid the most negative effects of this sluggish market. To combat this, Brett Martin is investing in customer support systems to enable our teams to work quicker and smarter to deliver enhanced customer experiences with a focus on delivering value.