40% of builders have reported a decrease in the number of work enquiries, according to the latest State of Trade Survey from the Federation of Master Builders (FMB). But the repair, maintenance and improvement (RMI) sector continues to remain buoyant – most FMB members reported increased workloads for RMI.
“The RMI sector remains fairly strong this quarter, with more FMB members still seeing an increase in workload,” explained Brian Berry, the FMB’s chief executive. “But worrying signs are on the horizon with a sharp drop off in enquiries.
“House building continues to struggle with more members reporting less workloads than there are reporting more. There has also been a sustained decline in enquiries, suggesting that the picture will continue to worsen.
“Housing is rising up the political agenda, as evidenced at the recent party conferences. This new data highlights why the government should be concerned at a time when we need to be building more new homes.
“The survey also highlights the continued pressure on bottom lines, with members putting up prices to accommodate for economic adversity and inflationary pressures. Worryingly, we’re also seeing over half of small building companies falling below their expected margins. As the Autumn Statement approaches, the chancellor needs to be mindful of steadying a fragile housing market.”
Other findings from the FMB survey for Q3 2023:
• There has been a sharp upturn in difficulty hiring general labourers, with 34% reporting problems (up from 25% in Q2)
• Half of FMB members reported that jobs are delayed because they are struggling to hire skilled workers.
• 71% of members reported that material costs increased in Q3 2023. 55% expected this to continue into the next quarter, which is an improvement on previous quarters.
• The impact of increased outgoings has led to 71% of members increasing the prices they charge. Half reported that the business in on track to make a loss or fall below expected margins.
