NEWSROUND Construction output slows up after September high


Output growth slowed considerably across the UK’s construction sector after reaching a 29-month high during September, according to the headline S&P Global UK Construction Purchasing Managers’ Index™ (PMI®). This registered 54.3 in October, down from 57.2 in September. However, the index was above the crucial 50.0 no-change threshold for the eighth month running.


The latest reading was also well above the average seen in the first half of 2024 (51.4)


showing solid expansion of total industry activity. Civil engineering (56.2) was the best-performing category of construction output in October, and, although commercial work (52.8) also expanded, the increase was the weakest since the current period of growth began in April. House building (49.4) was the only broad category of construction work to register an overall decline in output during October. This was the first decrease in residential activity since June, but the rate of contraction was only marginal. Survey respondents again noted


BMF reacts to the Budget


The BMF CEO, John Newcomb, has voiced concerns over the Budget’s impact on small and medium-sized merchants. “We fully expected this to be a difficult budget for our members, with many of the revenue raising measures flagged in advance,” he said.“The majority of our merchant


members are classified as SMEs, with over 70% having an annual turnover below £12.5m. While there was one piece of good news relating to fuel duty, this is far outweighed by increases in minimum wage and national insurance contributions. Our members will be hugely impacted by these extra costs which will immediately come off their bottom line.


“This is extremely disappointing at a time when we are seeking to increase recruitment and skills in the building materials sector. Skills which will be essential if we are to fulfil the additional product demand to deliver 1.5 million new homes, which the government has pledged, but provided little detail as to how they plan to achieve.”


fibo Collect UK wins Building Innovation Award


fibo Collect UK concept of concrete, screed and mortar collection from merchant sites, has won the Most Innovative Hardware Product award at this year’s Building Innovation Awards.


The ‘Building Innovation of the Year’ award recognises ground-breaking


innovations that have significantly advanced the building and construction industry. It is a judges’ choice award meaning that winners are really scrutinised on their innovation in the build up. fibo Collect was recognised as the cutting-edge click and collect hardware solution for concrete, mortar, and screed collections, which is transforming the way trade people operate across the UK, Ireland and beyond.


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rising demand across a range of energy infrastructure projects, especially renewables in October, but some companies noted that elevated borrowing costs and uncertainty ahead of the Autumn Budget had constrained demand. Total new work expanded at a solid pace in October. Mirroring the trend for output growth, the latest expansion was softer than the two-and-a-half year high seen in September. Political uncertainty and subdued household demand due to cost-of-living pressures were cited as factors limiting new order growth in October. That


said, many construction companies noted strong sales pipelines and tender opportunities linked to generally improving domestic economic conditions.


Tim Moore, Economics Director at S&P Global Market Intelligence, said: “The construction sector signalled another month of solid output growth in October, despite being unable to match the highs seen in September. Business optimism remained relatively subdued in comparison to the highs in the first half of the year, with output growth expectations now the lowest since December 2023.”


Williams Trade Supplies joins PHG


Independent plumbing and heating merchant Williams Trade Supplies Ltd will join plumbing, heating and bathroom buying group PHG from January 1 2025, with the integration process work starting now.


Williams Trade Supplies is a trade only merchant with over 50 branches across the UK, and regional fulfilment centres in Fareham, Manchester, Milton Keynes and Bristol.


Ray Stafford, Chairman at Williams Trade Supplies said: “We are delighted to be welcomed into PHG and look forward to the benefits that our combined


BMCO calls in administrators


Independent builders merchant the Builders Merchant Company appointed Andrew Mackenzie and Laura Baxter of Begbies Traynor as joint administrators last month. The merchant, which is based in Scunthorpe, with branches in Rotherham, Goole and Hull, was the subject of a winding up petition in September. Administrators were appointed after attempts to sell it through failed to secure a buyer. Founded in Scunthorpe in 1928, the company went through a


management buyout in 2021, with the new shareholders managing director, Duncan Thomson, and financial director, Jane Thomson, of holding company Thomson Building Supplies Ltd,


All 26 employees of the BMC business have been made redundant and the aim is to sell the freehold property and assets of the business.


www.buildersmerchantsjournal.net November 2024


purchasing can bring the business.” David Pochin, Chairman at PHG said: “We are extremely pleased to welcome Ray and his team to PHG and look forward to working with them. We know that they will bring great commitment, energy and experience to the PHG table and become a valuable member.”


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