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.
“This quarter’s data reflects quite a stable environment, particularly when compared to the ups and downs of recent years. Members are continuing to recover from low workloads and enquiries experienced in the latter part of 2023, but the market is still far from positive. This is reflected by a significant rise in the number of businesses reporting lower than expected profits in this quarter. We also see the same issues rearing their head, with challenges in employing certain trades rising, particularly carpenters which saw a sharp rise in their difficulty to recruit. When we look at the different sectors, the repair maintenance and improvement sector is slightly improved, boosting overall workloads and enquiries, but house builders continue to have a tough time and are in need of a boost”.”
Market conditions
- There has been a slight increase in total workloads with a slight decrease in total enquiries.
- Reported net change in workloads was up by 7% on Q1 2024, with slightly more members reporting an increase than decrease.
- 42% of FMB members reported a decrease in enquiries with 33% seeing an increase.
Skills
- 54% of FMB members reported no changes in employment levels in Q2 2024 compared with Q1 2024.
- 41% of members are struggling to hire carpenters, up from 31% in Q1 2024
- 43% of members have reported shortage of skilled tradespeople has resulted in job delays.
Changes in prices and costs
- 64% of members report that material costs increased in Q2 2024, down from 69% in Q1 2024.
- The impact of increased outgoings has resulted in 52% of members to report that their 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.
