By Sarah Macklin 
The Federation of Master Builders has released their quarterly State of Trade survey, and it revealed some interesting things about work required of builders.
The FMB’s survey has monitored the construction industry and predicted short-term developments within the UK for more than 30 years. It is one of the only surveys to focus on small and medium-sized enterprises in the construction sector.
The FMB State of Trade survey results
This quarter (Q2 2023), the FMB has observed an upward trend in repair, maintenance and improvement (RMI) building. This can include making changes to existing homes, general improvement and repairwork, including commercial buildings. Around 40% of FMB members surveyed saw an increase in their workload. Only 18% reported a reduction in work. This is great news for the construction industry, which saw a tumble during COVID-19 lockdowns and a materials shortage in 2022.
However, they also observed a reduction in the workload and the number of enquiries for house building.
Brian Berry, Chief Executive of the FMB, said: “While there are plenty of positives to take from this quarter’s State of Trade survey, there are still worrying signs for house builders. Workloads are up, driven by a strong repair, maintenance and improvement sector and encouragingly we’re also seeing pressure on obtaining skilled labour easing.”
Berry continued: “House building has been hit badly. Despite a slight increase on last quarter, an increasing numbers of members are reporting less work than they are more, and enquiries continue to look bleak. The fall in house building is worrying because housing supply is a key component of a growing the economy and unlocking a mobile workforce. The Government needs to step up its efforts if its own ambition to build 300,000 each year is to be met because the figure is expected to be less than half than that this year. “
Berry concluded: “The survey also points towards other areas of concern, with just under half of FMB members saying they expect profits to be lower than expected and around one in five saying they are restricting hiring new staff. With inflation dipping marginally, we’ll need to see over the coming months if this has any positive effects on bottom lines.”
An overview of survey results:
The latest survey for Q2 2023 found:
- Increase in total workload and enquires is primarily driven by a continued strong rebound in the repair, maintenance and improvement sector.
- Overall, 40% of members reported an increase in workload, with only 18% reporting a reduction compared to last quarter.
- House building workloads and enquiries continue to struggle with more members reporting a decrease than increase.
Skills
- Overall, difficulty in recruitment is easing, however;
- 38% of members are struggling to hire carpenters with 29% struggling to hire bricklayers.
- A quarter of members can’t get hold of general labourers.
- Over half of all members reports that jobs are delayed because they are struggling to hire skilled workers.
Impact of changes in prices and costs
- 79% of members report that material costs increased in Q2 2023 with 72% expecting this to continue into the next quarter.
- The impact of increased outgoings has led to 69% of members increasing the prices they charge, with just under half reporting that the business is on track to make a loss.
- 19% report that they are restricting hiring new staff as a consequence of increased outgoings.
