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For all the dark mumblings of recession and falling markets in the aftermath of September 11 last year, the Federation of Master Builders' (FMB) final quarterly State of Trade survey for 2001 holds little evidence to support the doom mongers. The FMB survey is the tenth in succession to record an increase in small and medium-sized builders' workload, with a third of respondents reporting higher levels of business than during the previous three-month period. New social housing was the strongest work sector, but over the course of the year, private domestic RMI work showed the strongest trend.
Around the regions, the North of England proved the hottest spot with more than half of those surveyed experiencing increased workloads, along with 41% in the North West, 37% in East Anglia and 34% in Wales.
Perhaps not surprisingly at this time of year, the FMB State of Trade survey sees some evidence of a levelling off in the market at the start of 2002. Despite this, 11% of firms surveyed expect to employ more people in the first three months of 2002. If anything, the shortage of skilled craftsmen is hampering business growth for many, with almost two thirds (63%) reporting difficulties in obtaining skilled labour to work as direct employees or sub-contractors.
Said FMB Director General, Ian Davis:
"It is very encouraging, amid much talk of recession, to see that our members are so busy, and expecting to remain so. But the shortage of skilled craftsmen continues to be an acute problem in many parts of the country. Skill shortages are one of the key issues which are holding back our members businesses.
"There are two other major ones: VAT and false self-employment under CIS. With other trade associations, we are pressing the Chancellor of the Exchequer, and Ministers in relevant Government Departments to review both urgently."
For many FMB members 2001 was a bumper year, but what will 2002 bring? Professional Builder caught up with two of them, Hall Construction, based in the Cotswolds, and JGA Quickfall in Grimsby.
Phillip Hall, who specialises in private renovation work on Cotswold country buildings saw business increase by 20% last year, and already has a full order book until at least Autumn 2002. But while business is good, Phillip has encountered problems in recruiting and retaining tradesmen. He is an active campaigner for more skilled labour to be drawn into the industry and works closely with local schools to encourage youngsters to consider a career in building.
"The labour issue is not a new problem, but it seems to get worse year on year," says Phillip. "We have a particular problem because we specialise in Cotswold stone and slate which is a local skill so there is a limited supply of people who can work with it. We do much of our training in-house, but when the market goes up there are several builders in the area, all desperate for skilled men and a lot of poaching goes on. You need to hang on to the guys you've got and lock them into the company by whatever means you can."
The knock-on effect of this means that rates of pay in the area are higher than the national average and rising, and firms like Hall Construction need a crystal ball when they are pricing a job that may not start on site for six months or so.
Up in Grimsby, Mick Quickfall's firm is not so badly affected by labour issues. With 60 employees, Quickfall's is one of the FMB's larger members. Mick claims not to have a recruitment problem - but then he did buy another firm a couple of years back in order to get its workforce! The company also has an ongoing training policy making full use of CITB grants to improve its workers' skills.
Like Hall Construction, Quickfall's also has a full order book, but they have chosen to diversify their business. "We don't specialise in one area, we price every job offered to us and hopefully win it," says Mick. This approach means the company is as familiar with building new houses - they have 12 on site at the moment - as it is refurbishing schools, another sector that took off this year.
They have also developed a good business as a nominated insurance contractor, where they are paid direct by the insurance company on the satisfactory completion of a job. Almost half his workforce is now involved in this type of work, and it's an area that Quickfall's believe offers further opportunity for development.
Being busy is no guarantee that your business will be problem free - on the contrary it's often when you most need free advice or support. For example, how long does it take you to track down new or unusual materials when the client won't accept a substitute? For FMB members, the answer is just a phone call away as they can put our free Research and Information Department on the case. What do you do when you find hazardous materials when you open up an old building? FMB members ring our free Health & Sarety Helpline. These services and many others including free job leads, free credit checks and free legal advice are part of the benefits enjoyed by FMB's members.
To find out more about joining the FMB call free on 08000 875675. Or check out the FMB website at www.fmb.org.uk.
First posted: 18 July 2002. Last modified: 18 July 2002.
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