NFRC Survey Highlights Late Payments and Public Pipeline

THE STATE of the Roofing Industry member survey from NFRC and Glenigan for Q4 of 2023, highlights late payment and the continuity of public non-residential RM&I as key issues for the UK roofing sector.

Public non-residential RM&I is expected to be the fastest growing sector with 33% of firms anticipating that their workload will increase. However, following the lack of clarity in the Spring budget this is uncertain, which NFRC says may negatively affect the roofing sector.

Late Payments

Overdue payment continues to feature highly as a key concern in the State of the UK Roofing Industry Q4 2023 report. In fact, less than a third of respondents are paid within 30-day terms. The figures are only slightly better for those payments made within longer terms. This has been a consistent trend since the survey started in 2019.

James Talman, CEO NFRC

NFRC Chief Executive James Talman said: “We are supportive of the Government’s statutory reporting duty on Business Payment Practices and its impending update, along with the associated league tables published by Build UK. However, these measures are not improving the fortunes of the majority of our members, who also face ongoing higher labour costs. The knock-on impact for SMEs, micro-businesses and the self-employed is too often ignored in favour of others who are a strategic risk if not paid within terms.”

Public Pipeline

A rise in workload and demand for labour signals a continuing optimistic outlook, bucking the trend of many other sectors in the current economic climate.

The survey’s positive outlook hinges on the ‘refurbishment of non-domestic public works’ as a key marker. NFRC says in order to enable its members to invest in skills and innovation for the longer term, this pipeline must extend beyond 2025 with full government commitment. The Spring Budget’s lack of additional public sector funding for construction-related areas is likely to disappoint industry stakeholders, NFRC adds.

Private Sector Stimulus

Allan Wilen, Glenigan Economic Director

Glenigan’s Economic Director Allan Wilen, said: “Roofing contractors’ workload continued to improve during the final quarter of 2023, with commercial and domestic RM&I particular bright spots.”

Despite signs of a slight improvement in the commercial sector’s prospects, albeit from a low base, new house building is a major cause for concern for the substantial number of NFRC members serving this sector, the report finds. However, there is reported optimism that economic indicators will start to improve the outlook, a sentiment anticipated to manifest in the next survey.

Employment Opportunities

There is also positive news on continuing employment opportunities across both pitched and flat roofing. NFRC says that efforts to enhance the sector’s image are evident in the professionalism demonstrated by members. This work is crucial not only to ensure retirees are replaced but also to ensure the additional skills required in areas such as solar PV, rainwater management and green roofs are available.

Sustainability in Procurement

When asked how sustainability is featured in procurement considerations, the survey highlighted a disparity between rhetoric and reality. There seems to be a lack of cohesive approach amongst members’ clients concerning common needs. NFRC says it aims to help drive consensus on what is practical and beneficial to all parties.

The quarterly State of the Roofing Industry is a survey of NFRC Trade Members, with analysis conducted by Glenigan.

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