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The results of the FMB's latest State of Trade survey of the workloads of small and medium sized builders (SMEs) appear to confirm that an Englishman's home really is his castle. Eight out ten builders (81%) reported that workloads in the second quarter of 2004 increased or remained the same, with the strongest results in the private housing sector, where repair, maintenance and improvement work (RM&I) was slightly ahead of new housing work. In the non-residential sector, commercial new build was the strongest market.
A further increase in both workload and workforce numbers is expected in the third quarter of the year, with the same three types of work expected to provide the main impetus.
Said FMB director general, Ian Davis:
"It is clear that interest rate rises have not diminished homeowners' desire to upgrade their property. Analysts may be predicting a levelling off of house prices in the medium term, but a great many homeowners are demonstrating their continuing confidence by extending or enhancing their home."
But while the private housing sector is surging ahead, work in the social housing sector, both new build and refurbishment, is static or falling. The negative balance (-21%) of higher and lower volume of work replies for new social housing is the weakest for four years. For social RM&I work it is exactly in balance - with a quarter reporting an increase, a quarter indicating a fall, and the remainder finding no change.
Geographically, the results are most positive in the North East, Scotland and Northern Ireland, which reported positive workload balances of 55%, 50% and 45% respectively. Only one region, Greater London, reported a negative workload balance (-29%). Just a quarter of respondents working principally in the capital reported an increase in work, while over half said their workload had declined.
After negative findings in each of the three previous surveys, the Eastern Region result this time is well ahead of the national one, with 95% reporting increased or maintained workloads.
All regions, with the exception of Scotland, expect a further increase in workload in the third quarter of the year - although there is more confidence amongst specialist contractors than general builders.
First posted: 6 August 2004. Last modified: 6 August 2004.
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