Workloads for small building companies fell by 8% 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% 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.”
Berry 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.”
Gordon Nelson, FMB Scotland Director said: “The last three months of the calendar year typically don’t bring the best of results for the building industry in Scotland. The shorter days and inclement weather combine to dampen builder’s spirits and stave off potential clients from enquiring about building works.However, examining the results from across all four nations of the UK in the FMB’s Q4 State of Trade Survey for 2024, it is Scotland that comes out on top. On the two key measures of overall workload for builders and enquiries for new works, there is a clear contrast between the welcome results in Scotland compared to the rest of the UK."
Nelson continued: "In April the rise in employer National Insurance contributions combined with increases to the national minimum and living wage will add more costs for our builders who continue to grapple with material price increases. It’s already tough for employers in the building industry to recruit the next generation of master builders, so these increased costs are not welcome. As we approach spring, we await to see if consumer confidence holds up. The early spring is a critical time of year for builders who deliver home improvement works such as extensions and renovations. So we eagerly await the results from our next survey.”
