For more than 30 years, the FMB's State of Trade Survey has monitored key indicators and predicted future short-term developments in the UK construction industry. It is the only survey of its kind to focus exclusively on micro, small and medium-sized (SME) firms throughout the construction sector.
View from the Chief Executive, Brian Berry: “This quarter there has been a stabilisation in most of the metrics, with only minor ups and downs. However, what is worrying is that the numbers, certainly for workloads and enquiries, are settling in negative figures, similar to those seen between 2010 and 2013, when the UK economy was particularly buffeted by austerity measures which impacted spending power. To see these figures now, does suggest all is not right with the UK economy, but this may be an inevitable post-covid dip, following a few years of pent-up household cash reserves. We have, however, seen improvements in some areas, notably availability of skilled workers, with bricklayers and carpenters becoming easier to hire”.
The report's main findings are:
Market conditions
- There has been a very moderate increase in total workload and enquires, but number are still negative, reflecting the same metrics seen in 2010 to 2013 when the country was buffeted by austerity measures.
- Employment over Q1 of 2024 has remained stable and matches similar figures seen in 2010 to 2013.
- 44% of FMB members reported a decrease in enquiries.
- Workloads were up 6% on Q4 2023.
Skills
- Overall, difficulty in recruitment has slightly decreased, with the exception of general labourers who are more difficult to hire (28% struggled to hire them compared to 24% last quarter).
- 33% of members are struggling to hire carpenters.
- 28% are struggling to hire bricklayers, which has dropped considerably from 35% last quarter.
- Over a third of members report that jobs are delayed because they are struggling to hire skilled workers.
Changes in prices and costs
- 69% of members report that material costs increased in Q1 2024, up from 63% in Q3.
- The impact of increased outgoings has led to 65% of members increasing the prices they charge, with 44% reporting that the business in on track to make a loss or fall below expected margins.
- Over a quarter report that they are restricting hiring new staff as a consequence of increased outgoings.
