There has been a rebound in repair, maintenance, and improvement (RMI) building work for the first three months of this year, according to representatives of the Federation of Master Builders (FMB). RMI work increased by 12% compared to the last quarter of 2022, and reported enquiries went up by 14% on the previous quarter, the FMB’s latest State of Trade Survey has revealed.
“The rebound in domestic building work at the start of this year compared with the pessimistic forecasts towards the end of last year is an encouraging sign,” said Brian Berry, the FMB’s chief executive. “It’s a positive sign for the economy that homeowners are continuing to invest in their homes.
“Despite the good news for domestic building work, it is very concerning that house building is still in negative figures, despite a slight increase in reported workloads. Given there is a growing housing crisis, the fact we are building fewer and not more homes is a worrying sign for consumers, builders and the government.
“The FMB’s survey also shows the effect inflation is having on SME building companies, resulting in them having to raise their prices in order to stay afloat. Ten percent of FMB member companies are potentially at risk of closure. We are far from having certainty in the building industry but at least there are some signs that we are starting to move in the right direction.”
Other findings from the latest survey for Q1 2023 are as follows below:
Market conditions
• There is an overall recovery in enquiry and workload levels for the RMI sector: 14% of members reported an increase this quarter.
• Most (87%) FMB members reported an increase in material costs.
• The house building sector is continuing to struggle with more reporting a decline in workload that those seeing more work (-4%). However, this has improved on last quarter where it was -18%.
Skills
• Members report an overall net decrease in employment levels in Q1 2023 (-3%).
Impact of cost/price changes
• 87% of members reported that material cost had increased in Q1 2023.
• Three quarters (75%) of FMB members reported an increase in the prices they charge for work.
• 45% of members reported that business profits were lower than expected this quarter.
