According to the latest State of Trade Survey (Q4 2024) from the Federation of Master Builders (FMB), workloads for small building companies fell by 8% in the last three months of 2024.
Brian Berry, FMB Chief Executive, 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.”
Brian 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.
