The latest state of trade survey by the Federation of Master Builders (FMB) revealed that construction SME workloads remained positive in Q3 2018, but grew at a slower rate than recorded in the previous quarter.

In addition, some 86% of builders reported rising material prices in Q3 2018, up from the 76% reported in the previous quarter.

The survey also revealed that more than two-thirds of construction SMEs (68%) said they were struggling to hire bricklayers, while 59% were struggling to hire carpenters and joiners.

Over half of construction SMEs (58%) said they expected salaries and wages to increase over the next six months.

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Brian Berry, chief executive at the FMB (pictured above), said that there were a range of factors slowing growth, including ever-increasing material prices.

 “Anecdotally, we are hearing worrying reports of banks withholding previously agreed funding for projects, which is delaying start dates and dampening growth.

“This may or may not be related to Brexit nerves.

“The construction skills shortage is also taking its toll.

“More than two-thirds of construction SMEs are struggling to hire bricklayers – brickies are easily the most sought-after tradespeople in the building industry currently.”

Brian continued by saying that these latest figures matched the highest it had noted since records began a decade ago.

“These skills shortages are also leading to projects being stalled because there physically aren’t enough people to build them.

“Worse still, the scarcity of trades means that when construction employers can find people, they are paying huge salaries, which is putting further pressure on margins.”