Key Findings - 3rd Quarter 2001 The FMB's third state of trade survey in 2001 has found a further increase in the total workload of small and medium-sized building firms. This is the ninth quarterly survey in succession in which the proportion reporting workload higher than in the previous quarter has been greater than that indicating a drop in work, and the fifth in succession in which the difference between the 'higher' and 'lower' proportions has been more than 25 percentage points. There are, however, some regional differences, with firms in the North of England and Wales, and possibly those in Northern Ireland, showing a fall in workload. The increase is mainly in three types of work - both new build and repair, maintenance and improvement of private housing, and repair and maintenance of non-residential buildings for private sector clients. The rise in workload is expected to continue. The gap between the proportion looking forward to a further increase in the coming quarter, and that anticipating a decline in work, is narrower than last time and the one before, but the change is no more than may be explained as a normal seasonal variation. Looking slightly further ahead, the trend in enquiries regarding possible future work remains relatively very buoyant, particularly in respect of RM&I of private housing, and also commercial work. Only a few firms add comments about concerns that further slowdown in the economy could lead to postponement or cancellation of some industrial and commercial building projects, and R&M of non-residential buildings for private sector clients, but none has written anything about the state of the economy dampening demand for private housing RM&I. The trend in employment is also upwards, but not so strong as that in workload. It seems that, as is quite customary in the Summer months, a significant part of the increase in work is attributable to working longer hours. Looking into the fourth quarter, almost three quarters expect no change in employment, but of the remainder there is a slight majority in favour of a further increase in the workforce. In these circumstances, it is no surprise that there are signs of some further tightening of the labour market situation, with 75% of the total response indicating difficulty finding skilled workers to join as direct employees or work as sub-contractors. Among firms working principally in London this proportion is as high as 90%, and there are indications that the labour recruitment situation is putting a brake on the trend in workload in the capital. There is some slight increase in the proportion of respondents reporting delays of more than two weeks in obtaining supplies of materials, but it is still at a relatively very modest level, given the rise in workload. Written-in comments identify recruitment and training as the main concerns of small and medium-sized building firms at the present time. First posted: 31 October 2001. Last modified: 31 October 2001.