The Federation of Master Builders (FMB) is reporting its weakest quarterly survey of the construction market for a decade in its latest 'State of Trade Survey'. The results for the second quarter (Q2) of 2008 reveal that conditions in the building industry for FMB members show no signs of improving.
Key results from the survey reveal:
- 40% of respondents said that their workload had fallen since Q1 2008
- 36% of respondents expect their workloads to fall further in Q3 to be lower than in Q2 2008
- Nearly 50% of respondents working in the new private housing sector expect their workloads to fall over the next 3 months
- A downturn in employment with 18% more firms reporting that their workforce decreased during the Q2 than said their employment increased.
Brian Berry, Director External Affairs at the FMB said:
"What our survey shows is that builders are operating in an increasingly difficult market. The rapid downturn in the house building sector is now making its mark on small builders with nearly 50% of our survey respondents saying that they expect their workloads to fall over the coming months."
Berry continued: "Employment has significantly decreased over the last quarter, which is a huge concern not only for the building industry but for the wider economy. There is now growing evidence that small building firms are starting to make staff redundant. However, as in Q1 the issue of the skills gap is still causing problems for firms lucky enough to be in the position to consider recruiting. There is still a lack of core trades such as skilled brick layers, carpenters, and plumbers and the problem is set to increase if the industry does not start thinking about apprentices and the next generation of builders."
Berry concluded: "The only other glimmer of hope on the horizon for the building industry comes in the latest findings of a new report commissioned by the FMB from Oxford University, 'Building A Greener Britain - Transforming the UK's Existing Housing Stock' which says there is a potential new market worth between £3.5 and £6.5 billion for green home refurbishments. However, to tap into this new market the Government needs to set out a clear policy about how it intends to make the existing housing stock more energy efficient as part of its commitment to cut carbon emissions by 80 per cent by 2050."
10 July 2008
