Welsh SME Builders Face Rising Costs and Labour Shortages: Over 1 in 4 Projects Cancelled Due to Resource Woes
Government must support local builders to ease affordability crisis, boost homeownership, and relieve pressure on rental market
The Federation of Master Builders’ 2025 Cymru Master Builder Awards reveals Wales’ top builders defying industry roadblocks
The 2025 Cymru Master Builder Awards, sponsored by the Development Bank of Wales, will take place on Friday, 4 April 2025, at Voco St. David's Cardiff. This prestigious event will celebrate the achievements of SME builders across Wales, with category winners advancing to the UK finals in September 2025 - where they’ll compete for the grand prize, a brand-new Isuzu Pick-Up truck worth £42,000, courtesy of headline sponsor Isuzu.
State of the Welsh Construction Industry 2025
Britain’s construction slowdown is worsening the housing crisis, with fewer homes and rising costs hitting consumers hardest. According to Welsh Government estimates, roughly 6,200 - 8,300 new homes are needed annually, only 4,754 were built in 2023/24 - one of the lowest figures on record - pushing prices up for buyers and renters alike.
Labour shortages, with 36% of firms struggling to hire key tradespeople, have delayed 45% of projects and canceled 27%, making home improvements and repairs more expensive. Material and wage costs have also surged 64%, forcing half of SMEs to raise prices, yet 40% still report lower-than-expected profits or losses. Despite these pressures, Welsh SME construction is set for 9% growth in early 2025, driven by strong demand for renovations (64%) and home improvements (45%).
However, with fewer workers in the industry (-18% in Q4 2024) and recruitment difficulties restricting expansion, support for SME builders will be crucial in ensuring long-term sustainability of the local housing market. Critically, the point is that when building stalls, the public feels the impact - whether it’s the young family priced out of their local housing market, or the homeowner who must wait extra months (and pay more) to fix a leaky roof.
Celebrating Builders
Events like the 2025 Cymru Master Builder Awards shine a light on the dedication and craftsmanship of these builders, celebrating their success amid industry-wide uncertainty.
From Project One’s high-tech Caerphilly Mountain Smart Home, a seamless blend of luxury and automation, to Atlantic Dwellings’ striking open-plan extension in Penarth, which transformed a modest home into a light-filled architectural statement, and Excel Home Design’s expertly crafted attic conversion in Flemingston, adding valuable living space with breathtaking valley views - this year’s nominees showcase the very best of Welsh SME construction. These projects are a testament to the skill, creativity, and problem-solving abilities of the builders behind them, who continue to push boundaries despite rising costs and labour shortages.
But great builds are nothing without great talent, and the industry’s future depends on apprentices like Callum Jones of MJ Construction who has been shortlisted for the Master Builders’ Apprentice of the Year Award. Callum’s journey into carpentry has been one of resilience and determination. Having faced an incredibly difficult childhood, he found his way into the trade at the age of 16, starting as a labourer.
With no parents to guide him and a tough upbringing in a highly deprived area, it would have been easy for him to take a different path. Instead, he channelled his energy into learning, driven by an unshakable work ethic and a determination to succeed. Now a skilled carpenter, his dedication reflects the hard work and passion that keep this sector thriving.
The 2025 Cymru Master Builder Awards are about more than just outstanding builds - they celebrate the people behind them. These stories highlight why supporting and championing SME builders is so important, ensuring the industry continues to flourish for years to come.
Quote from Ifan Glyn, Director of FMB Cymru:
“Small, local builders are the backbone of our construction industry, yet they are being severely impacted by rising costs, a chronic shortage of skilled workers, and an outdated planning system. Many builders are now in survival mode, with a recent FMB poll revealing that nearly 1 in 10 building firms fear closure due to current pressures. With Wales now the least affordable part of Britain for first-time buyers, and with our existing housing stock among the oldest and least energy-efficient in Europe, a thriving building sector is more critical than ever. To achieve this, we must support our builders by making apprenticeships more accessible, by offering financial relief to struggling firms, and by cutting through the red tape that hampers progress. Without these urgent reforms, our housing crisis will deepen and our existing stock will continue to deteriorate. The Welsh Government must take action to ensure that small builders receive the support they need to keep Wales building.
About the Federation of Master Builders:
The Federation of Master Builders (FMB) is the largest trade association in the UK construction industry representing thousands of firms in England, Scotland, Wales and Northern Ireland. Established in 1941 to protect the interests of small and medium-sized (SME) construction firms, the FMB is independent and non-profit making, lobbying for members’ interests at both the national and local level. The FMB is a source of knowledge, professional advice and support for its members, providing a range of relevant business building services to help them succeed. The FMB is committed to raising building quality and standards in the construction industry and offers a free service to consumers called ‘Find a Builder’.
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