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.

This comes at a time when the political world continues to provide a significant level of uncertainty, and our builders are having to adapt. It is well documented that skills and materials issues are directly impacting the delivery of major Welsh Government plans such as the rollout of 20,000 low carbon social homes, which the Minister responsible for social housing, Julie James MS, described as “a perfect storm of misery”. The Welsh Government must look at ways of boosting skills to ensure that projects like this can be delivered, which would deliver work for beleaguered builders.    

This new data indicates a decline in workload  for Welsh builders, with just 18% reporting an increase in workload compared to the previous quarter. This compares to 32% in Q2. However, 27% of builders reported an increase in enquiries from an 11% low in Q2, whereas 64% stated that enquiry levels have remained the same.

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:

Welsh market activity

  •  27% of builders reported an increase in enquires, versus just 11% in Q2
  • There is a decline in workload  for Welsh builders, with just 18% compared to 32% in Q2

Market conditions

  • Both workload and enquiries have decreased in Q3 2022 compared to Q2 2022 on balance in all sectors.
  • However, 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.

Ifan Glyn, Director of FMB Cymru, said: “The screw has been tightening on builders for some time, but we are now starting to see these blockages threatening the delivery of critical projects. The Minister’s recent admission that the Welsh Government target to build 20,000 social homes is in jeopardy is something that we should all be concerned about. Some of these problems are the result of global issues, but many are home grown.

Glyn continued: “A prime example is the construction skills crisis, and there’s plenty that Welsh Government could be doing to help alleviate the situation. For example, builders will need to acquire new green skills in the drive to improve the energy efficiency of homes, but there is currently lack of meaningful support and guidance available to help them acquire these skills. The Welsh Government should do more to support builders in this regard.”

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.