The latest quarterly state of trade survey from the Federation of Master Builders (FMB) shows continuing tough times for small builders.
Previous talk of recovery may have been premature, the FMB now suggests.
Only 27% of FMB members saw their workload increase between the second and third quarter of this year, while 32% reported a decline in workloads. Nearly a quarter (23%) reported a decrease in the number of employees.
Finding skilled workers is a perennial challenge for building firms. The FMB Q3 2024 survey found that 28% are struggling to hire bricklayers, down slightly from 29% in the previous quarter, and 35% of members are struggling to hire carpenters, down from 41% in Q2.
Difficulties in recruiting general labourers have substantially increased, however, with 34% of FMB members citing it as an issue, up from 26% in Q2. Firms facing challenges hiring roofers have increased from 13% to 16%, and painters & decorators from 11% to 13%
Overall, 38% of FMB members have reported shortage of skilled tradespeople has resulted in job delays.
With costs going up, so are the prices that building firms are charging. Approximately 65% of FMB members said that rising costs led to higher prices for their services, a slight decrease from 67% in Q2.
It is all a bit of a reverse from the previous FMB state of trade survey, which suggested a slow recovery appeared to be starting [Output recovering slowly, says FMB].
FMB chief executive Brian Berry said: “The FMB’s latest state of trade survey for Q3 20024 reveals a challenging economic climate for small building companies across the UK with 32% of FMB members reporting falling workloads over the past quarter. Enquiries are also down, as is employment, with over a third of members struggling to recruit bricklayers and carpenters. What is concerning is that the poor numbers reported by builders seem to be here to stay as they have been a constant throughout 2024. The last time such a negative trend was reported was in the years following the financial crisis of 2008.”
He concluded: “The government missed a key opportunity in the October budget to announce serious funding to tackle the skills crisis in Britain while tax rises, such as the increase to employers’ national insurance contributions, creates additional barriers with firms already struggling to recruit staff. The government needs to prioritise boosting construction skills if it is serious about having a high-quality construction industry capable of delivering the ambitious housebuilding targets it has set out.”
