For more than 30 years, the FMB's State of Trade Survey has monitored key indicators and predicted future short-term developments in the UK construction industry. It is the only survey of its kind to focus exclusively on micro, small and medium-sized (SME) firms throughout the construction sector.
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This quarter’s State of Trade data reflects the ongoing pressure faced by the UK’s small builders, with workloads down and costs remaining stubbornly high. A total of 65% of respondents to our survey reported an increase in material costs in Q3 compared to Q2, and 61% expect the prices to keep on rising into Q4. While the struggle to hire a bricklayer or plasterer has eased slightly, shortages of general labourers, painters and decorators and roofers are on the rise. This is reflected in the significant number of severe job delays observed, with 38% of respondents reporting delayed jobs due to a lack of skilled tradespeople. Substantial delays risk a rise in rogue builders, and demonstrates the importance of tackling the construction skills crisis as a priority.”
Market conditions
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Workloads are down 7% on the previous quarter.
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32% of members reported a decline in workloads, with 41% seeing no change.
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Enquiries are down 3% on Q2 of 2024
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Employment over Q3 of 2024 has declined once again, seeing a 4% on the second quarter.
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The most common type of work for an FMB member were renovations and major works
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Skills
- 23% of members reported a decrease in the number of employees, which is similar to Q2 (24%) but lower than Q1 2024 (28%)
- 35% of members are struggling to hire carpenters, down from 41% in Q2 2024
- 28% are struggling to hire bricklayers, down slightly from 29% in the previous quarter.
- Difficulties in recruiting general labourers have substantially increased according to 34% of members, up from 26% in Q2 2024. Challenges hiring roofers have increased from 13% to 16%, and painters and decorators from 11% to 13%
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38% of members have reported shortage of skilled tradespeople has resulted in job delays.
Changes in prices and costs
- Approximately 65% of members indicated that rising costs led to higher prices for their services, a slight decrease from 67% in Q2 2024
- 54% of members who experienced rising costs reported lower-than-expected business profits or financial losses, a slight increase from 52% in the previous quarter.
- 26% of respondents said that cost pressures have caused them to restrict their recruitment plans, a slight increase from 22% in Q2 2024. Around 10% revealed that their business viability was compromised, putting them at risk of closure.
