Growth among Northern Ireland’s building firms slowed significantly in the second quarter of 2017, according to the Federation of Master Builders (FMB) Northern Ireland.
Key results from the FMB’s State of Trade Survey for Q2 2017, which is the only quarterly assessment of the UK-wide SME construction sector, include:
- The overall indicator for the performance of Northern Ireland’s construction SMEs saw a double-digit decline of 23 percentage points to +4;
- NI builders saw the slowest growth of any of the home nations;
- 83% of builders think that material prices will rise in the next six months;
- Almost two-thirds (62%) of construction SMEs expect salaries to increase in the next six months.
Gavin McGuire, Director of FMB NI, said: “Although the SME construction sector in Northern Ireland is still growing, that growth was severely dampened in the second quarter of this year. Clearly the on-going political uncertainty here, including the lack of a functioning NI Government or Budget, is starting to quell growth among small builders. It is no coincidence that the construction sector in Northern Ireland is growing at the slowest rate of any of the home nations. Construction SMEs are particularly vulnerable to dips in consumer confidence that can come from political uncertainty and that uncertainty is particularly rife in NI. Understandably, there will be home owners who are sitting on their hands and delaying any big purchasing decisions, such as loft conversions and extensions, until things look a little steadier politically.”
McGuire continued: “But where the NI Executive continues to fail us, local authorities can step up and create a positive climate for the construction sector to flourish. There is a requirement for all eleven councils in NI to prepare a community plan and with the Executive flailing, strategic commitments on house building and infrastructure projects from local government has never been so important. Derry and Strabane recently launched their Strategic Growth Plan for 2017 to 2032, which suggests a spend of some £3.8 billion yet does not even mention house building – we’re urging all local authorities to recognise the economic and social benefits that a healthy construction sector can bring and include relevant commitments in their community plans.”
McGuire concluded: “Aside from the political situation in Northern Ireland, the skills shortage is also cause for concern and should be viewed as a ticking time bomb. Bricklayers and carpenters have been in short supply for quite some time but we are starting to see those shortages spread to other key trades such as plumbers and plasters. As a sector, we need to do more to appeal to the next generation and FMB NI is working with the wider industry to address this. And to ensure we don’t then lose these new entrants to the mainland, the Executive and our local authorities need to help create a climate where the NI construction sector can thrive.”
Notes to editors
The Federation of Master Builders (FMB) is the largest trade association in the UK construction industry representing thousands of firms in England, Scotland, Wales and Northern Ireland. Established in 1941 to protect the interests of small and medium-sized (SME) construction firms, the FMB is independent and non-profit making, lobbying for members’ interests at both the national and local level.
The FMB is a source of knowledge, professional advice and support for its members, providing a range of modern and relevant business building services to help them succeed. The FMB is committed to raising quality in the construction industry and offers a free Find a Builder service to consumers.
