The Welsh SME construction sector grew at a faster rate than that of any other home nation in the second quarter of 2017, albeit at a slower rate than in the first three months of the year, according to FMB Cymru.
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 Welsh construction SMEs declined by 9 percentage points to +26;
- However, Welsh construction SMEs enjoyed stronger growth than their English, Scottish and Northern Irish counterparts;
- One-in-three construction SMEs in Wales now predict rising workloads in the coming months;
- 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.
Ifan Glyn, Director of FMB Cymru, said: “When you consider the levels of political uncertainty firms have endured over the past three months, such strong growth among Welsh construction firms is all the more heartening. Clearly the Welsh construction sector is a resilient one. However, there is further uncertainty down the road – the latest inflation figures give cause for concern as home owners will inevitably start to feel the pinch. Welsh construction SMEs work predominantly in the private domestic sector and we must therefore play close attention as if inflation continues to rise and wages in the wider economy remain stagnant, some people may be deterred from commissioning building projects.”
Glyn concluded: “With potentially choppy waters ahead, and given the importance of the construction sector to the health of the wider economy, both the UK and Welsh Governments should take steps to mitigate this threat. Both governments must give the green light to the various large construction projects in the pipeline, such as the Swansea Bay Tidal Lagoon, as to do so will bolster the economy and in turn, consumer confidence. Although small Welsh building firms won’t benefit from these large projects directly, there is a halo effect. Large infrastructure projects have the potential to breathe life back into economically depressed areas of Wales, of which there are many.”
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.
