Roofing Firms Hampered by Labour Shortages as Workloads Continue Rising

FIRMS ARE still hampered by labour shortages, as over half of roofing and cladding contractors found it harder to recruit suitable labour in the third quarter of 2022.

According to the latest State of the Roofing Industry survey from the National Federation of Roofing Contractors (NFRC) and Glenigan, pipelines of work have remained strong for most, but other factors are making it a challenge to do business.

Workloads

The survey indicated that roofing contractors’ workloads grew once again during the third quarter of 2022. A total of 44% of firms reported a greater workload compared to the previous quarter, with only 12% reporting a decline. Enquiries were down for firms in most sectors, but contractors were positive about the market in the short term.

Recruitment and Retention

Obtaining sufficient labour was a major challenge for contractors in Q3, with 51% of firms reporting greater difficulty finding operatives and staff with the right skills. Only 9% said they had found it easier than in the previous quarter.

Roof slaters and tilers were most difficult to recruit, with 35% of those surveyed saying they were finding it hard (up 8% from Q2). Meanwhile, 23% reported difficulty finding built-up felt roofers, and 20% had the same difficulty with general labourers. One respondent said that if they had enough staff, their firm would be able to double its current output.

Almost a third (32%) of firms said they had struggled to keep new starters recently — most prevalent in the new build and domestic repair, maintenance and improvement sectors.

Costs

Labour costs were an additional challenge during the quarter. Far more firms reported an increased wage bill than reported taking on more people, even including those who reported increased use of subcontracted labour.

As expected, material prices continued to rise, with three quarters of firms (75%) reporting rising costs compared to the previous quarter. The majority of firms (52%) increased their tender prices during the quarter.

Material Availability and Pricing

The availability of materials continued to be a challenge, with a balance of 21% of firms reporting increased difficulty in obtaining the necessary supplies.

Concrete roof tiles were hardest to obtain, with 24% of firms reporting an issue getting what they needed, while 9% of firms reported that it was difficult to obtain the necessary timber battens, although supply has now eased.

Payment Practices

Late payments also remained common: 54% of firms had average contractual payment terms of 30 days or less, but only 21% firms actually received payments on average within that time. This potentially hampers cashflow for firms, who already face the challenge of having monies held in retention on top of general inflationary pressures.

Contractors Need Stability and Support in 2023

James Talman, NFRC CEO

Commenting on the State of the Roofing Industry Q3 2022, James Talman, NFRC CEO, said: “On the whole, the third quarter of 2022 presents a mixed picture — cost inflation, project delays and labour challenges are putting pressure on firms, yet firms are still busy, and material availability issues have eased considerably compared to a year ago.

“Government needs to provide contractors with reassurance that they will help businesses to carry the burden of increased energy costs, and invest in training the next generation of the construction workforce so that firms are not continually hampered by a lack of operatives. It also needs to look at removing barriers to cashflow (including retentions), and all firms need to be pushed to deliver on implementing Build UK’s minimum retention standards — pledges alone will not keep SMEs afloat.”

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