• Average sales reached £587,054 – a rise of +42.6% QoQ and -4.5% YoY
• Purchase orders (POs) dropped by -0.3% QoQ
• Stock on hand fell by -12.6% QoQ
• Lead times fell from 23 to 15 days QoQ
• Profitability (GMP) stood at 40.8% (+8pp QoQ, +8pp YoY)

Sales growth and efficiency gains have helped UK construction manufacturers recover their margins and put them on a firm footing for 2026, new figures reveal. 

Revenue from sales rebounded in Q3 2025, with small and mid-sized firms generating an average of £587,054 – over two-fifths more than the previous quarter. 

Profitability – measured as Gross Margin Percentage (GMP) – jumped by 8pp compared to the previous quarter, as lead times, purchasing volumes and stock on hand value all dropped. 

Lead times fell from 23 to 15 days (-34.7% QoQ), while purchase orders (POs) and stock on hand declined by -0.3% and -12.6% respectively. 

The figures appear in the latest manufacturing report from inventory management specialist Unleashed, an inventory management software platform popular with small and mid-sized manufacturers. Its quarterly report is based on data from more than 600 UK firms using the software, across manufacturing categories such as food and drink, clothing and fashion, and construction. 

Joe Llewellyn, GM of ERP Small Business at The Access Group, the parent company of Unleashed, said building and construction manufacturers had moved quickly to protect their margins:

“The last quarter was characterised by a determined push towards efficiency.”

“Sales revenue was healthy, even if it didn’t reach the dizzy heights of the same period last year. But our data shows that purchasing and lead times were both down quarter on quarter, a sign of weakened demand reflected in the contracted PMI for this period. This, along with ongoing cost pressures, prompted construction manufacturers to act. They’ve moved from cautious ‘Just in case’ stock building in Q2 to a leaner just in time approach, cutting their margins and stock on hand to protect their margins and cash flow.”

Looking ahead, he added that operational excellence would be key to succeeding in a low-growth, high-cost environment. 

“Going into 2026, construction manufacturers will need to make the most of data to enable forecast-driven replenishment, track landed costs in real-time, and identify and convert excess stock into cash. Doing more with less is the new reality, seen in the continued trend in industrial automation.”

The challenges still facing the sector were highlighted by Colin Barton, director at Coldene Castors, which supplies material handling solutions to businesses, including scaffolding companies. He said:

“We have not seen the same recovery. Our margins remain under pressure due to ongoing supply chain disruption, continued instability in the steel market and the wider economic climate, all of which continue to affect our costs and planning. While some manufacturers may be seeing improvements, these challenges are still very present for us and are limiting any real margin uplift.

Unleashed’s report also compared performance across different manufacturing categories, with construction manufacturers’ performance consistent with the wider industry 

Overall firms saw a 12.9% QoQ surge in sales, and a +1.3pp uplift in GMP to 39.66%. Purchase orders also dropped by 30% QoQ, as did stock on hand (-27.2%), and lead times by 8 days. 

View the full Unleashed Manufacturing Health Index report.