Survey Reveals Third of Small Builders Support a National Retrofit Strategy

A THIRD of small builders are in favour of the UK Government introducing a long-term plan to reduce energy consumption by making existing homes greener and more energy efficient, according to the latest State of Trade Survey.

The survey from the Federation of Master Builders (FMB) shows that growth in workloads, enquiries, and employment levels are all continuing to contract, with enquiries dropping into negative territory for the first time since 2013 (excluding the pandemic years).

These findings come at a time of political uncertainty with building companies having to adapt without knowing what the immediate future holds, due to inconsistent economic policies. The FMB warns that without clear political and economic direction, the industry will continue to face an uncertain future.

State of Trade Survey for Q3 2022

The quarterly released FMB State of Trade Survey tracks the experience of small to medium-sized (SME) construction firms in the UK. The survey for Q3 2022 found:

National Retrofit Strategy

• 74% of small, local builders are in favour of retrofitting UK homes.

Market Conditions

• Both workload and enquiries have decreased in Q3 compared to Q2 2022 on balance in all sectors.
• In terms of total enquiries, a third (33%) of FMB members reported an increase in Q3 compared to Q2 2022.
• 62% of FMB members have delayed jobs due to a shortage of materials.

Skills

• 20% of FMB members reported an increase in the number of employees within their company’s workforce in Q3 2022.
• At least one third of FMB members are struggling to recruit carpenters/joiners, bricklayers and general labourers (43%, 38%, and 34%).
• 59% of builders have delayed work due to a shortage of skilled tradespeople.

Prices

• 90% of FMB members reported an increase in material costs in Q3 2022.
• 88% of respondents expect material costs to increase in Q4 2022.
• 76% of builders have put up their prices for work.

Brian Berry, Chief Executive of the Federation of Master Builders

Brian Berry, Chief Executive of the FMB, said: “The fall in builders’ workloads and enquiries to a level not seen since 2013, discounting the turbulent market during the Covid pandemic, is a worrying signal about the future prospects for the building industry. They reflect the overall economic situation that the UK finds itself in.”

“Small builders across the country need clear policies, and a degree of assurance so they can plan ahead. The current political uncertainly and its impact on the economy needs to be addressed quickly. Over 70% of members support a UK-wide retrofit strategy to make the existing housing stock more energy efficient. This is one of the best ways to boost both the economy and the industry, while also upgrading our homes in an energy efficient way.”

>> Read more FMB State of Trade Surveys here