The FMB’s State of Trade Survey for Q2 2024 found a reported net 7% increase in workloads from the preceding quarter. 

Recruitment also improved, with a -2% change compared to the -11% recorded in the first quarter. 

These positive figures have been attributed to a more stable operating environment but the survey highlighted the ongoing skills shortage remains an issue for the industry. 

The survey found 41% of FMB members struggled to hire carpenters in Q2, up from 31% in the first quarter. At the same time, 29% were struggling to hire bricklayers, up from the 25% in the previous quarter. 

Overall, 43% of FMB members reported a shortage of skilled tradespeople had resulted in delays, up from 36% in the first quarter. 

Though price increases had fallen in the second quarter from the first quarter, with material costs rising by 64% and 69% in these respective periods, this was still having an impact on businesses.

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In the second quarter, 10% of FMB members reported having to make redundancies or terminae contracts due to cost pressures. This is up from the 9% reported in the previous quarter.

Brian Berry, CEO of FMB, described this as “worrying” and highlighted that 55% of firms are expecting lower profits for the quarter compared to 44% feeling this way at the start of the year.

“The new government has used its early weeks in office to announce promising plans to boost house building rates and reform the planning system, which may result in a much needed economic stimulus,” said Brian. 

“However, the UK is currently experiencing a construction skills crisis, and concerns remain about viability without the workforce in place to deliver new homes. The prime minister’s speech laying the groundwork for Skills England was hopeful but lacked detail. We need to see a long-term skills plan to deliver the government's ambitions for growth."