13th July 2009 – FOR IMMEDIATE RELEASE
FMB builders’ workloads continue to fall despite media speculation about green shoots of recovery, reveals the latest market survey from the Federation of Master Builders (FMB).
The FMB survey which covers the second quarter of 2009 (April, May and June) is the only survey that reports on the workload of small and medium sized enterprises (SMEs) in the construction industry. The survey reveals that workloads across the building sector have continued to fall with 49% of FMB builders reporting lower workloads; just 3% of FMB builders reporting an increase; and workloads predicted to fall again in the coming quarter. This suggests that market conditions remain tough and that there is no actual growth returning to the construction sector as a whole just yet.
There is some evidence, however, to suggest that the recession in the construction sector may be beginning to bottom out. The survey results show a general slowdown in the rate of decline in the second quarter of the year. This slowing of the rate of deterioration is accompanied by a substantial improvement in FMB builders’ expectations compared to those of previous quarters, and there is a strong suggestion that many areas may see some stabilisation. Those FMB builders anticipating “no change” in the coming quarter included 51% in private new build, 59% in social new housing, 57% in social repair, maintenance and improvement (RM&I), 54% in industrial, 43% in commercial, and 51% in private non-residential RM&I.
Employment conditions remain tough with the sixth consecutive quarter of decline. The decline is expected to continue overall during the remaining two quarters of 2009. 40% of FMB builders reported having had to reduce staffing levels; 51% reported no change; and 67% are anticipating no change in the next quarter suggesting that firms are fighting hard to keep skilled staff for when the recovery does materialise.
Richard Diment, Director-General of the FMB:
“The FMB State of Trade Survey for Quarter Two 2009 shows just how far away from green shoots we actually are and there is a massive difference between things getting worse at a slower rate, and things actually getting better. Although the rate of decline does seem to be easing and may even be starting to bottom out, we are not out of the woods yet, and it is vitally important that the Government takes urgent steps to pave the way for genuine recovery.”
The State of Trade Survey is available to view here.
