In Q3, as with Q2, we saw a fall in demand for private housing largely due to the increase in mortgage rates. Private housing is the largest sector of the construction industry, so the knock-on effect is a reduced footfall in builders’ merchants.

Forecasters have downgraded the expected construction recovery in 2024, warning the industry is now set to remain in recession until the start of 2025.

Despite this, some areas of the industry – notably energy-efficiency retrofit – are continuing to perform well.

Anecdotal feedback at recent events such as Screwfix Live has shown that there’s a genuine demand for more eco-friendly products from end users in the industry. When meeting with our large distribution partners, the topic of how we can support them in reaching their sustainability goals is beginning to dominate the conversation.

The adoption of sustainable suppliers is not only a moral obligation but also a strategic move for builders’ merchants. Sustainable suppliers are more likely to invest in research and development, continually improving their products, making them more efficient and cost-effective. This long-term view benefits builders’ merchants as they access to superior, innovative, and more environmentally friendly products.

Merchants who commit to sustainability can also gain a distinct competitive edge. They can leverage their green credentials to win tenders and contracts, demonstrating their commitment to ethical business practices.

Bostik has recently appointed a new Head of Sustainability, who will play a pivotal role in developing and implementing strategies to minimise the environmental impact of our operations. This includes reducing carbon emissions, conserving resources, and promoting circular economy principles, to further align the company with national and global sustainability targets.

The construction sector is a significant contributor to carbon emissions and resource consumption. In fact, construction creates an estimated third of the world’s overall waste, and at least 40% of the world’s carbon dioxide emissions.

Builders’ merchants, as intermediaries between suppliers and builders, have a pivotal role in reducing the industry’s environmental impact. By sourcing from sustainable suppliers, they can provide more eco-friendly products and materials that promote a reduction in carbon footprint.