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Figures published today in the Federation of Master Builders' (FMB) 'State of Trade Survey' for the first quarter of 2002 found clear indications that, for the eleventh successive quarter, the building sector has enjoyed sustained growth, exceeding industry expectations. Furthermore, FMB members expect business to remain buoyant, at least for the next quarter.
The workloads of small and medium-sized builders in the UK regions are still on the increase, with almost half of the 425 FMB members surveyed indicating that their workload was higher in the first quarter of 2002 than in the final three months of 2001, figures almost identical to those published 12 months ago. A further 35 per cent of respondents reported that they are maintaining a similar workload to that of the final quarter of 2001.
Whilst the London market remains relatively healthy, the strongest indications of increased workload in the last quarter were recorded in Yorkshire, Wales and Scotland. Homeowners are also spending more on refurbishment, improvement and maintenance, with the proportion of firms reporting an increase of work in this area a fifth higher than those indicating a fall - a trend expected to continue in the coming months.
In line with the current growth in the building industry, almost a third of the FMB members polled expect to employ more people in the next three months and almost two thirds predict they will be able to successfully sustain their current workforce.
Although the survey highlights that the current outlook for the building industry is positive, the lack of labour within the building industry is an ongoing problem, with 60 per cent of respondents quoting this as an issue.
This is, in many cases, putting a constraint on business growth in the building sector. Other issues highlighted by the survey included unfair competition from firms working 'cash in hand', false self-employment and the increase in bureaucracy from, for example, changes to Part L of the Building Regulations (England and Wales).
Commenting on the findings of the survey, FMB Director General, Ian Davis, said:
"It is heartening to see that the building sector remains positive and FMB members are, on the whole, enjoying a period of sustained growth, despite some predictions to the contrary in the last quarter of 2001. With the industry remaining buoyant, skilled craftsmen are very busy. Our advice for anyone thinking about building work on their home is to book a reputable builder now and plan well in advance. Although the overall outlook for FMB members remains positive, there are ongoing issues which the FMB is actively campaigning on behalf of our members."
Anyone wishing to find an FMB registered builder can use the free 'Find a Builder' service through the FMB's head office (tel. 020 7242 7583) and via its website at www.fmb.org.uk. The FMB can also provide information on how to protect work being carried out through it cost-effective MasterBond insurance-backed warranty scheme.
First posted: 18 July 2002. Last modified: 18 July 2002.
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