The pace of growth amongst construction SMEs in Wales quickened in the first three months of this year, bucking the UK-wide trend of a decline in output, according to the Federation of Master Builders (FMB) Cymru.
Key results from the FMB’s State of Trade Survey for Q1 2019, which is the only quarterly assessment of the UK-wide SME construction sector, include:
- UK-wide, SME workloads declined for the first time in six years as more respondents stated lower workloads (29%) compared with the final three months of 2018 (13%);
- In Wales, there was a jump of 25 percentage points compared with the previous quarter. 46% of weighted responses were positive, up from 32% in Q4 2018;
- Skills shortages eased slightly among some occupations. Bricklayers were once again the trade in most short supply with 64% of firms having difficulties hiring them;
- A record-breaking 88% of SME builders anticipate that material prices will rise further in the next six months;
- Almost three-quarters (71%) of construction SMEs expect wages and salaries to increase over the next six months, up from 66% in the previous quarter.
Ifan Glyn, Director of FMB Cymru said: “The first quarter of 2019 was a really positive one for SME construction firms in Wales, despite the UK overall seeing workloads decline for the first time in six years. Builders in Wales are working flat out to meet the high the demand for private and public construction projects. Thankfully the economic uncertainty that is plaguing some parts of the UK has not yet stretched to Wales and for now, the SME construction industry in good health.”
Glyn concluded: “However, there are some concerns regarding the construction industry in Wales more broadly. The manner in which the UK and Welsh Governments have taken decisions on large infrastructure projects in Wales over recent years has shown contempt for the construction sector. A string of projects has been pulled over the past couple of years, namely the Circuit of Wales racing circuit, the Swansea Bay Tidal Lagoon, Wylfa Newydd Nuclear Power Station, and the rail electrification between Cardiff and Swansea. The issue isn’t necessarily that they have been pulled, but rather that discussions between the politicians and private investors have taken place behind closed doors and with no industry involvement. Consistently announcing major projects that are later canned causes huge mistrust and uncertainty within the industry. The Government needs to rethink how it works with the construction sector in Wales as if this pattern continues, the sector won’t believe what the Government says, meaning it won’t upskill or expand for the projects the Government really does want to deliver.”
