NEWSROUND


Construction growth drivers remain, despite risk rise


Total construction output is forecast to rise by 1.9% in 2025 and 3.7% in 2026, matching projections from Spring. The Construction Products Association is forcasting that total construction output will rise by 1.9% in 2025 and 3.7% in 2026, matching projections from its Spring Forecasts.


The growth drivers will be private housing new build, private


housing repair, maintenance and improvement (rm&i) and infrastructure.


Private housing output is MKM in bulk bag recycling first


Builders merchant chain MKM Building Supplies has launched the UK’s first 100% recycled, fully recyclable bulk bag.


Developed in partnership with Centurion Industrial Packaging, the new bags are made entirely from recycled polypropylene, offering a market-first solution that minimises landfill, helps customers cut waste and


Lords Group opens new AW Lumb branch


Lords, the builders and plumbers merchant group, has opened a new branch in Mansfield for its AW Lumb merchant business. The branch is the first new site for AW Lumb in over 40 years, and comes two years after it was acquired by the Lords Group. Located on the Crown Farm Industrial Estate, the new branch provides 27,000 sq.ft. of warehouse and office space and within a 2.9 acre site. The location will support the existing AW Lumb branches in Tamworth and Dewsbury to expand their network across the Midlands and beyond.


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Shanker Patel, chief executive officer of Lords, said: “The Mansfield branch marks a key step in Lords’ growth strategy and continues the Group’s commitment to supporting our customers new and existing with excellent service, strong stock availability, expert advice and a customer first approach. Customers can expect a full range of building materials, drylining, timber and insulation products, all supported by experienced teams and reliable delivery options.”


smashes the current environmental regulation requirements. Head of building materials, Ric Bauer said: “We’ve gone from 30% recycled content to 100% across all 135 branches. It’s better for customers, better for compliance, and better for the planet. This isn’t about ticking boxes — it’s about leading the industry forward.


forecast to rise by 4.0% in 2025 and 7.0% in 2026. Smaller house builders have seen an improvement in demand, but site viability remains challenging, given the numerous costs that the government continues to add to house builders.


In private housing rm&i, activity continues to be supported by government-subsidised energy-efficiency programmes, predominantly for heat pumps and solar photovoltaics, as well as a stream of fire safety remediation work. Outside of this, general home improvement activity remains subdued. Overall, private housing rm&i output is expected to rise by 2.0% in 2025, with any


“Most industry-standard bulk bags contain just 30% recycled content—the legal minimum. MKM’s new bags fully realise that potential by using 100% recycled polypropylene, which means diverting significant plastic waste from landfill and reducing the demand for virgin materials.” The group has also opened its 135 branch. MKM Wolverhampton , located on Neachells Lane ,introduces the company’s first-ever


growth at the backend of the year, followed by 3.0% growth in 2026. Infrastructure activity continues to remain strong on major projects such as Hinkley Point C and HS2, with water & sewerage as well as energy generation and distribution also set to become key drivers of growth next year.


CPA Head of Construction Research, Rebecca Larkin, said: “The key fundamentals for the construction industry remain largely unchanged. Although everything continues to point towards the gradual growth in construction activity gathering pace over the rest of this year and in 2026, the only thing that has changed is the uncertainty.”


‘Fast Lane’ drive-thru warehouse. With two vehicle entrances, the Fast Lane is designed to reduce waiting times and cut out unnecessary manual handling.


IBMG restructuring plans gain court approval


Troubled builders merchant group Independent Builders Merchant Group (IBMG) has had its restructuring plans approved by a UK Court.


The plans have recapitalised the


Group, and significantly reduced financial indebtedness. As part of the restructuring, the Group’s senior lenders have become the new shareholders of the Group. IBMG launched the Plans in May 2025, and has rolled out a comprehensive communications plan, including briefings with all key staff across its entire network and a dedicated webinar for partner suppliers.


Martin Stables, CEO at IBMG, said: “The Group is confident that this transformational restructuring provides a strong financial foundation for a resilient, thriving future for our business. I want to express my deep gratitude to our colleagues, suppliers, and customers for their unwavering support throughout this period. As we embark on our next chapter with the support of our new owners, we remain committed to continuing to deliver exceptional value and service to our customers and stakeholders and achieving our ambition to be the Local Merchant of Choice.”


www.buildersmerchantsjournal.net August 2025


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