In the Viewpoint column of PBM’s April 2026 issue, editor Paul Davies ruminates on the backdrop to this year’s ‘Top 20’ merchant countdown as world events yet again look set to impact on the industry…
The literal centrepiece of this issue, our annual ‘Top 20’ merchant countdown serves as a snapshot of the current market while also offering a summary of the performance — and comment from — the largest firms in the sector. As one might expect, we are not presenting stories of soaring sales or vast expansion plans across the board, but there are some positive highlights and tales of proactive investment to set against the broader (economic) backdrop.
The ‘headline’ news is doubtless the disappearance of National Timber Group from our listing, which occupied 11th place 12 months ago yet collapsed into administration late last year. And whilst other merchant firms have also faced significant challenges over the last year, in compiling our listing for this edition, we are minded here to focus more on the ongoing successes that dominate the league table overall.
You can find further detail — both good and bad — on the PBM website, but in a stagnant market, it is important to underline the ways in which business have successfully charted a path through. For example, investment in modernised branch networks, empowering branch-level staff, drawing on the experience of multi-generational legacies, benefitting from the power of buying groups, showcasing new product solutions and embracing all manner of new technologies, methodologies and leadership strategies to maximise business efficiencies.
Indeed, for a sector still all-too often dismissed as being somewhat ‘traditionally minded’ and resistant to change, I find it fascinating how merchant businesses of all sizes simply keep managing to find and deploy new ways to navigate whatever challenges are thrown their way.
Of course, this is not to say that some help wouldn’t be welcomed. At two recent events — the BMF Parliamentary Reception and the FORTIS Building & Timber Conference — a common refrain was that, despite its rhetoric, the government just isn’t helping. Such sentiments are no doubt echoed far and wide within the industry overall, but factors such as increases to the minimum wage and employers’ national insurance contributions are still causing consternation in the real world.
Amendments to Business Property Relief and inheritance tax plans might be an improvement on the initial proposals, but the potential impact on succession planning for family-owned firms remains substantial. Many simply highlighted the considerable time, resource and — bluntly — worry being expended on the issue, whilst the likely beneficiaries will only be the lawyers and accountants finding a path through the pitfalls, rather than the intent of actually boosting the country’s coffers…
And as we discussed last month, even pronouncements such as the Warm Homes Plan seem to be more of a roadmap than a tangible framework…
Similarly, the BMF used its annual Westminster gathering to issue a robust challenge to the Government on the lack of tangible progress on its stated housebuilding pledges. From ongoing planning capacity issues and regulatory hurdles to weak consumer confidence, BMF CEO John Newcomb called for a “new approach to quickly restore momentum.”
Emphasising BMF members’ underlying support for the stated ambition to build 1.5 million new homes and upgrade existing ones under the Warm Homes Plan, John said: “For the first time in over 60 years, there is a noticeable absence of government support for first-time buyers. We urge the Government to demonstrate its commitment to supporting the housing market through targeted stimulus measures, such as the Freedom to Buy concept proposed by the Home Builders Federation.”
And of course, such demand-side measures typically create a domino-effect throughout the wider building and RMI sectors…
Compounding things, and while the famous quote itself is likely apocryphal, the latest global crisis — this time in the Middle East — means yet more “events, my dear boy…” are set to levy another blow to nation’s finances, for the Government and general public alike.
But we simply can’t keep standing still, bemoaning our fate and being buffeted by factors that, whilst out of our control, are inevitable in some shape or form. Or, worse still, just doubling down and continuing the same mistakes.
As the merchant sector consistently shows, when the need to change course is clear, you must take it.
