Fall in construction workloads, warns Federation of Master Builders
Workloads for small building companies fell by 8% in the last three months of 2024, according to the latest Q4 2024 State of Trade Survey from the Federation of Master Builders (FMB).
Brian Berry, Chief Executive of the FMB said, “The latest State of Trade Survey, looking at SME construction activity during the last three months of 2024, found that small building companies were continuing to battle against a deteriorating economic climate with workloads down by 8% and enquiries down by an alarming 23%. These falls are concerning, as any change in activity in the building repair, maintenance and improvement sector is usually a first warning sign that consumers are needing to tighten their belts.”
Berry continued: “The State of Trade Survey also reveals that 64% of small building companies reported an increase in material costs with 25% reporting a reduction in employment numbers. Ongoing shortages in some of the key trades such as carpenters, bricklayers and plasterers meant that 42% of building companies experienced job delays due to skills shortages. At a time when the Government is focused on economic growth, the Spring Statement in March will be a crucial opportunity to re-energise efforts.”
The FMB State of Trade Survey for Q4 2024 found:
UK Market conditions
Workloads decreased by net -11%, down from -5% on the previous quarter.
35% of members reported a decline in workloads.
Enquiries are down -23% in Q4, following on from previous declines of -9% in Q2 and -13% seen in Q3
46% of members reported a decline in enquiries.
Employment over Q4 of 2024 has declined once again, seeing a net workforce change of -8%.
The most common type of work for an FMB member were ‘Major Works’, followed by ‘Renovations’
Skills
25% of members reported a decrease in the number of employees, which is similar to Q3 (23%) and Q2 (24%) but lower than Q1 2024 (28%)
37% of members are struggling to hire carpenters, up from 35% in Q3 2024
28% are struggling to hire bricklayers, remaining consistent with the previous quarter.
Difficulties in recruiting general labourers have decreased slightly, with 33% of members reporting difficulties, down from 34% of members in Q3 2024.
Challenges hiring roofers have increased from 16% to 17%, and painters and decorators are at 15%.
42% of members have reported shortage of skilled tradespeople has resulted in job delays.
Changes in prices and costs
Approximately 67% of members indicated that rising costs led to higher prices for their services, a remaining consistent with Q3 2024
52% of members who experienced rising costs reported lower-than-expected business profits or financial losses, no change from 52% in the previous quarter.
35% of respondents said that cost pressures have caused them to restrict their recruitment plans, a significant increase from 26% in Q3 2024. Around 8% revealed that their business viability was compromised, putting them at risk of closure.
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