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.
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The latest State of Trade Survey looking at the final quarter of 2024, reflects the challenging climate small builders across the UK have faced over the past year, and continue to face going forward, with workloads, enquiries and employment numbers all down. 54% of respondents to the survey noted an increase in material costs in Q4 compared with Q3, a number which was already up significantly on Q2, and around three quarters of FMB members expect that trend to continue into 2025. The skills shortage is also starting to bite, with almost half of small builders reporting jobs having been delayed, or in some cases even cancelled as a direct result of the lack of available skilled workers. The significant drop off in both workloads and enquiries, down -11% and -23% respectively, are, however, particularly concerning given the Government’s push to get Britain building again.”
Market conditions
- Workloads decreased by net -11%, down from -5% on the previous quarter.
- 35% of members reported a decline in workloads.
- Enquiries are down -23% in Q4, following on from previous declines of -9% in Q2 and -13% seen in Q3
- 46% of members reported a decline in enquiries.
- Employment over Q4 of 2024 has declined once again, seeing a net workforce change of -8%.
- The most common type of work for an FMB member were ‘Major Works’, followed by ‘Renovations’
Skills
- 25% of members reported a decrease in the number of employees, which is similar to Q3 (23%) and Q2 (24%) but lower than Q1 2024 (28%)
- 37% of members are struggling to hire carpenters, up from 35% in Q3 2024
- 28% are struggling to hire bricklayers, remaining consistent with the previous quarter.
- Difficulties in recruiting general labourers have decreased slightly, with 33% of members reporting difficulties, down from 34% of members in Q3 2024.
- Challenges hiring roofers have increased from 16% to 17%, and painters and decorators are at 15%.
- 42% of members have reported shortage of skilled tradespeople has resulted in job delays.
Changes in prices and costs
- Approximately 67% of members indicated that rising costs led to higher prices for their services, a remaining consistent with Q3 2024
- 52% of members who experienced rising costs reported lower-than-expected business profits or financial losses, no change from 52% in the previous quarter.
- 35% of respondents said that cost pressures have caused them to restrict their recruitment plans, a significant increase from 26% in Q3 2024. Around 8% revealed that their business viability was compromised, putting them at risk of closure.
