The Builders Merchants Federation (BMF) has warned that rising business costs are limiting recruitment opportunities and contributing to insolvencies across the building materials sector, as industry leaders call for measures to boost housebuilding and construction activity.
The warning follows the publication of the Milburn Young People and Work report, which highlights the barriers preventing young people from accessing employment and career opportunities.
The BMF said the findings reflect challenges being experienced across the building materials sector, where manufacturers, distributors and merchants are facing increasing financial pressures amid weak construction activity and a slowdown in housebuilding.
Construction supply chain hit by rising insolvencies
According to the federation, 24 member companies with a combined turnover of £242 million and employing 1,059 staff have entered insolvency during the past 12 months.
A further five members, employing 129 people and generating more than £60 million in turnover, have entered administration.
The BMF said increasing operational costs are affecting firms’ ability to recruit new staff and invest in future talent.
John Newcomb, Chief Executive of the BMF, said: “For the past 12 months we have been calling on the Government to get Britain building again and create stimulus for the housebuilding market in support of its manifesto pledge to build 1.5 million homes.
“The Milburn report points to a need for wider systemic change to support the creation of opportunities for young people and this is echoed by our members who tell us the cost of doing business is making it increasingly difficult for them to take on new staff.
“At the same time, the Home Builders Federation is reporting that regulatory costs and taxes have added £76,000 to the cost of building each new home, squeezing profit margins to the point of unviability and preventing new developments coming forward.
“Getting Britain building will stimulate a key market within the UK economy, generate jobs, improve skills, create homes and give the younger generation a chance to map out a meaningful career in our industry.”
Housebuilding slowdown impacts construction employment
The BMF represents more than 1,000 businesses across the building materials supply chain, employing almost 209,000 people and generating combined annual sales of £52 billion.
The organisation argues that stimulating housing delivery would create demand throughout the construction supply chain, supporting jobs, apprenticeships and skills development across manufacturing, distribution and merchanting businesses.
Industry concerns come as housebuilders continue to face pressures from rising regulatory costs, planning delays and affordability constraints, which have contributed to lower housing output across the UK.
Apprenticeships and careers remain a priority
In response to ongoing skills shortages, the BMF launched its Building Materials Careers initiative last year, bringing together careers information, apprenticeship opportunities and vacancies from employers across the sector.
The initiative builds on a previous industry commitment made by BMF members to create 15,000 apprenticeships by 2030.
Rachel Challinor, National Account Manager at Brett Landscaping and Building Products, said: “You can do any job in this sector; people aren’t pigeon-holed and hybrid roles are common.
“My job is varied and challenging. No two days are alike. It’s not just bricks and mortar – there’s loads more to it and women are increasingly discovering that.
“I would encourage anyone, especially women, to visit the Building Materials Careers website. We need more people and we need more women.
“This wasn’t necessarily an industry I’d considered as a career, but I love it.”
Industry seeks to attract new entrants
The federation also highlighted the experience of apprentice Ja’ul Alam, who switched careers after playing semi-professional football and was named BMF Apprentice of the Year 2025.
Ja’ul said:“I’d spent my whole life playing football, but I realised I needed to build a secure career, and the career opportunities in building materials appealed to me.
“It’s a much bigger industry than people realise, with so many different roles, and chances to grow if you’re willing to learN.
“Every week brings something new, whether it’s analysing data, managing supplier relationships, negotiating deals, or understanding how the market works.
“Leading projects and taking on real responsibility has been my biggest achievement so far. It’s rewarding to see how my work directly contributes to the business.”
Construction sector calls for housing stimulus
The BMF said supporting housing delivery remains critical to creating long-term employment opportunities across the wider construction sector.
With business costs continuing to rise and insolvencies increasing across parts of the supply chain, industry leaders are urging policymakers to accelerate housing development and infrastructure investment to help sustain jobs, skills and future workforce growth.
