Fall in construction workloads, warns FMB

  Posted by: electime      3rd March 2025

Workloads for small building companies fell by 8 per cent in the last three months of 2024, according to the latest Q4 2024 State of Trade Survey from the Federation of Master Builders (FMB).

Brian Berry, Chief Executive of the FMB 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 per cent and enquiries down by an alarming 23 per cent. 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.”

Berry continued: “The State of Trade Survey also reveals that 64 per cent of small building companies reported an increase in material costs with 25 per cent reporting a reduction in employment numbers. Ongoing shortages in some of the key trades such as carpenters, bricklayers and plasterers meant that 42 per cent 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 per cent, down from -5 per cent on the previous quarter. 35 per cent of members reported a decline in workloads.
• Enquiries are down -23 per cent in Q4, following on from previous declines of -9 per cent in Q2 and -13 per cent seen in Q3. 46 per cent of members reported a decline in enquiries.
• Employment over Q4 of 2024 has declined once again, seeing a net workforce change of -8 per cent. The most common type of work for an FMB member were ‘Major Works’, followed by ‘Renovations’

Skills

• 25 per cent of members reported a decrease in the number of employees, which is similar to Q3 (23 per cent) and Q2 (24 per cent) but lower than Q1 2024 (28 per cent)
• 37 per cent of members are struggling to hire carpenters, up from 35 per cent in Q3 2024
• 28 per cent are struggling to hire bricklayers, remaining consistent with the previous quarter.
• Difficulties in recruiting general labourers have decreased slightly, with 33 per cent of members reporting difficulties, down from 34 per cent of members in Q3 2024.
• Challenges hiring roofers have increased from 16 per cent to 17 per cent, and painters and decorators are at 15 per cent.
• 42 per cent of members have reported shortage of skilled tradespeople has resulted in job delays.

Changes in prices and costs

• Approximately 67 per cent of members indicated that rising costs led to higher prices for their services, a remaining consistent with Q3 2024
• 52 per cent of members who experienced rising costs reported lower-than-expected business profits or financial losses, no change from 52 per cent in the previous quarter.
• 35 per cent of respondents said that cost pressures have caused them to restrict their recruitment plans, a significant increase from 26 per cent in Q3 2024. Around 8 per cent revealed that their business viability was compromised, putting them at risk of closure.