FMB State of Trade Survey finds workloads and employment down
The Federation of Master Builders (FMB) State of Trade report for the first quarter of 2005 saw an overall slowdown in both workloads and employment for small and medium-sized builders.
The survey results showed a positive balance of 2% of building firms experiencing an increase in overall workload and a balance of 2% shedding workers during the first quarter. Relatively, the largest workload decline (10%) was in the finding for repair, maintenance and improvement (RMI) of existing private housing stock, which has been the principal driver of the rise in workload of small and medium-sized building firms. The only positive result was in private housing new build, which saw a 5% increase.
Said Ian Davis, director general of the FMB: "Although it is not possible to form a conclusive judgement on the basis of one survey, these latest results do seem to point to a levelling of underlying trend in workloads and jobs."
Mr Davis added: "Adding to this rather sobering picture is the fact that the proportion of builders reporting difficulty finding skilled labour is at its lowest level since the third quarter of 1999. The proportion of builders reporting delays of more than two weeks in supplies of building materials and products also remains low."
For the summer, there were only modest expectations in terms of future workload and employment, with weak results in terms of future enquiries. These responses were far lower than those in the first quarter of 2004 and the weakest first quarter results since 1999.
However Ian Davis notes that the picture is not uniform across the whole of the UK. "Trends are mostly stronger across the northern half of England, and also in both Scotland and Wales. Weakest areas are the Eastern Counties, London, South West and West Midlands," he added.
Ian Davis concluded: "Any decline in the demand for building work brings into sharp focus the need to combat the cowboy builder for the health of the legitimate building industry. I hope that following the election the new Government will introduce a reduced rate of VAT on all domestic building work. Only this will hit the financial incentive for householders to use VAT evading builders."
First posted: 25 April 2005. Last modified: 26 April 2005.
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