In the most recent State of Trade Survey from the FMB, a staggering 90% of members have seen their material prices rise and 60% have delayed jobs because they can’t get hold of skilled workers.
The most recent State of Trade Survey from the FMB shows that growth in workloads, enquiries and employment levels are all continuing to contract, with enquiries dropping into negative territory for the first time since 2013, excluding the pandemic years. This means that across the country, more builders are reporting a fall in enquiry levels, compared to the number seeing a rise.
It comes at a time when the political world continues to provide a level of uncertainty, our builders are having to adapt, while also facing an unclear few months ahead due to inconsistent economic policies. The FMB warns that without clear political and economic direction, the industry will continue to face an uncertain future.
The new data on Northern Ireland indicates that there continues to be a reduction in enquiries with -25 of respondents stating a they are receiving less enquiries overall for future work. The data also indicates that 38% of builders in Northern Ireland experienced a decrease in workload in Q3 2022, whereas 50% reported there was no change in the level of workload since the last quarter. 75% of respondents in Northern Ireland are having difficulties finding plasterers and 63% are struggling to find carpenters or joiners.
The FMB State of Trade Survey, which is released quarterly, is the only survey of its kind to track the experience of small to medium-sized (SME) construction firms in the UK. The latest survey for Q2 2022 found:
NI market activity indicates
- 38% of builders in Northern Ireland experienced a decrease in workload in Q3 2022.
- 50% reported there was no change in the level of workload since the last quarter.
- 75% of respondents in Northern Ireland are having difficulties finding plasterers.
- 63% are struggling to find carpenters or joiners.
Market conditions
- Both workload and enquiries have decreased in Q3 2022 compared to Q2 2022 on balance in all sectors.
- A third (33%) of FMB members report a higher workload in Q3 2022 than in Q2
- In terms of total enquiries, a third (33%) of FMB members report an increase in Q3 compared to Q2 2022
- 62% of FMB members have been impacted by a shortage of materials
Skills
- 20% of FMB members report an increase in the number of employees within their company’s workforce in Q3 2022
- At least one third of FMB members are struggling to recruit carpenters/joiners, bricklayers and general labourers (43%, 38%, and 34%)
Prices
- 90% of FMB members reported an increase in material costs in Q3 2022.
- 88% of respondents expect material costs to increase in Q4 2022.
- 76% of builders have put up their prices for work.
Gavin McGuire, Director of FMB Northern Ireland, said: “Concerns over rising material costs and an uncertain economic picture seem to be having an effect on clients’ desire to commit to projects. Without a current working Executive in NI, budget promises and commitments to home building and energy efficiency programs have still to become reality. Industry needs these pipelines of work to be clear, to invest in training and deliver the projects our communities deserve.”
Further information: The latest FMB State of Trade Survey can be downloaded here.
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.
