The Q4 2024 ‘State of Trade Survey’ from the FMB revealed that construction workloads decreased by net -11%, with 35% of members reporting a decline.

Employment in Q4 2024 declined again, seeing a net workforce change of -8%.

The survey highlighted that skills shortages were impacting the industry, with 42% of members reporting shortages of skilled tradespeople, resulting in job delays.

The FMB data found that 37% of members were struggling to hire carpenters, bricklayers (28%) and roofers (17%).

Additionally, 35% of respondents said that cost pressures had caused them to restrict their recruitment plans, a significant increase from 26% in the previous quarter.

Around 8% revealed that their business viability was compromised, putting them at risk of closure.

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Brian Berry, chief executive at the FMB, commented 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,” said Brian.

“‘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.”