Northern Ireland’s construction sector is showing strong signs of recovery in H1 2025, with workloads, enquiries, and employment all rising. But despite the upturn, homeowners may still face longer waits, higher prices, and even cancelled projects as firms struggle to find skilled tradespeople and keep up with rising costs, according to the latest State of Trade Survey, carried out by the Federation of Master Builders (FMB) and the Chartered Institute of Building (CIOB).
Workloads in Northern Ireland grew by a net balance of +36% in the first half of 2025, with house building (+68%) and repair, maintenance and improvement (+55%) leading the way. Enquiries surged even further, with a net balance of +64%, showing strong demand for new work. Employment followed suit, with 64% of firms increasing their workforce.
However, skills shortages and rising costs are threatening to slow progress.
A shortage of skills is holding projects back
- 77% of builders said a lack of skilled tradespeople affected their work, leading to delays (50%) and cancellations (39%).
- The hardest roles to recruit were plumbers and HVAC trades (54%), painters and decorators (46%), and general labourers (45%).
- Beyond trades, finding staff with the right knowledge is a major problem: 79% of firms struggled to hire workers with knowledge of the new building safety regime, 71% with new technologies, and 64% with sustainable building practices.
Costs are climbing - and set to rise further
- 66% of firms have increased the prices they charge, while 64% report rising wages and 61% face higher material costs.
- These pressures are squeezing margins: among those with higher costs, 51% restricted recruitment, 49% made redundancies, and 45% said their business viability was at risk.
- Looking ahead to Q3, most firms expect prices, wages, and materials to keep rising, with net increases of +61% to +68%.
Delays and disruption
- Nearly half of firms reported project delays due to changing project parameters (46%) and regulations (46%), with additional hold-ups from materials shortages (41%) and planning (39%).
- While most invoices are paid on time (59%), more than a third (34%) said payments vary, adding to cash flow challenges.
Outlook positive, but fragile
Despite these challenges, 73% of Northern Irish firms are positive about the next two quarters, the most upbeat of any UK region.
Gavin McGuire, Northern Ireland Director at the FMB commented: “It’s always encouraging to hear positive feedback from the industry, and the latest State of Trade Survey gives us reason to be optimistic. In Northern Ireland, workloads have risen by 36% and enquiries by 64% which are some of the strongest figures we’ve seen in years. These are clear signs of recovery, particularly in the repair and maintenance market, and we’ll be watching closely to see if this momentum continues through the rest of 2025.
McGuire continued: “But with this growth comes pressure. Builders are still struggling to find skilled workers, especially those with knowledge of new building safety rules and sustainable construction methods. These shortages are already causing delays and even cancellations. If we want to turn this recovery into lasting progress, we need real investment in training and support for SMEs who are working hard to upskill their teams and bring new talent into the industry. Overall, our optimism is not diminished and is always buoyed by the resilience of our industry, and the FMB members who provide outstanding examples of quality work and service.”
Notes to editors
- The FMB has conducted the State of Trade Survey for over 30 years. The refreshed 2025 edition now runs biannually with CIOB and is the only survey of its kind to focus exclusively on SME construction firms.
- The Q1-Q2 2025 survey received 458 responses, including 56 from Northern Ireland.