For more than 30 years, the State of Trade Survey has monitored key indicators and predicted future short-term developments for micro and SME building firms.
It has now been refreshed for 2025 and will be released every 6 months to measure the state of the industry. The survey is commissioned by the Federation of Master Builders (FMB) and the Chartered Institute of Building (CIOB).
It is the only survey of its kind to focus exclusively on small and medium-sized (SME) firms throughout the construction sector. The report looks at activity from January to June 2025. It casts ahead to July to December 2025.
Please note that for this revamped survey, there have been changes in the sample composition, which include FMB and CIOB members, as well as companies outside of both organisation’s membership. A total of 458 responses were received.
Key findings from the survey are summarised below, including market conditions, regional results, skills issues and business outlook.
Market conditions
- Workloads: Net workload increased by +25%, reversing the decline of –11% in Q4 2024. This marks the first simultaneous growth in workload, enquiries, and employment since Q2 2023.
- Enquiries: Net enquiries rose to +34%, up from –23% in Q4 2024.
- Employment: Net employment change was +26%, the strongest quarterly improvement since Q1 2010.
Regional performance
- Northern Ireland: Workloads +36%, Enquiries +64%
- Scotland: Workloads +30%, Enquiries +56%
- Wales: Workloads +24%, Enquiries +50%
- England: Workloads +21%, Enquiries +18%
Skills
- 39% of firms increased workforce size (up from 17% in Q4 2024).
- Only 13% reported a decrease in staff numbers.
Impact of skills shortages
- 61% of firms affected by lack of skilled tradespeople.
- 49% experienced job delays.
- 23% had job cancellations.
Business outlook
- 51% of firms have a positive outlook for H2 2025.
“It’s encouraging to see the construction sector getting back on its feet, with builders busier and more confident than they’ve been in months. House building and home improvement are leading the way, and many firms are expanding their teams to meet demand. But the reality is that many homeowners could still face delays or higher costs. Builders are finding it harder than ever to recruit skilled workers and rising prices for materials and wages are putting pressure on businesses. These challenges are slowing down delivery and making it harder for firms to take on new work.”
