NEWS
THE SCOTTISH AND NORTHERN IRELAND PLUMBING EMPLOYERS’ FEDERATION WARNS OF MOUNTING PRESSURE ON BUSINESSES AS LABOUR SHORTAGES DEEPEN AND MARGINS TIGHTEN… Costs surge & workloads decline for plumbing and heating businesses
Confidence across the plumbing and heating profession is sliding, as new figures reveal shrinking order books, rising costs and deepening workforce shortages, mirroring pressures across the wider construction sector. The Q2 2025 State of Trade report* from the Plumbing and Heating Federation (SNIPEF), the leading employer and business association for the profession, marks the first clear shift from stability to decline since the survey series began. The report’s outlook for the profession is now rated Stable to Weak. While many businesses remain operationally steady, confidence in the months ahead is weakening. Just 17% of firms expect workloads to improve, while 37% report that their order books have already fallen below expectations. Profitability is also under strain, with 49% of firms reporting reduced margins. Rising input costs, reported by 96% of respondents, along with continued payment delays and ongoing labour shortages, are adding to the pressure. Fiona Hodgson, Chief Executive of SNIPEF, said, “These are not isolated pain points. They are symptoms of deeper, compounding pressures within our profession, but also the wider construction sector. “Workloads are softening, margins are continuing to come under strain, and employer costs have surged, particularly following the rise in employer contributions in April. Firms are struggling to find the people they need, and confidence in the months ahead is weakening. “If we do not act soon to ease these pressures, we risk hollowing out both the plumbing and heating profession and the workforce needed to deliver on housing, infrastructure and net zero targets.” This warning follows broader signs of slowdown across the construction industry. The June Construction Purchasing Managers’ Index (PMI) showed UK activity contracting at its fastest pace
Confidence across the plumbing and heating profession is sliding, according to SNIPEF.
in six months. Private housebuilding saw the steepest drop, with output still well below pre-2023 levels, reinforcing concerns about future demand and capacity across the built environment. SNIPEF is also calling on government to forcefully tackle the persistent issue of late or delayed payments within construction, alongside the growing numbers of unresolved disputes, unjustified retention practices and write- offs that are creating cashflow challenges for many SMEs within the sector. Key findings from the Q2 2025 State of Trade report: • Order books are weakening: 37% of firms report declining forward workloads • Profit margins under pressure: 49% report reduced profitability • Costs continue to rise: 96% say input costs are up, with 30% seeing significant increases • Apprenticeship recruitment remains
respondents stating they were very unlikely. • Economic confidence has eroded: Just 13% are confident in the UK economy, compared to 49% expressing pessimism To address the worsening workforce crisis, the Federation has launched a two- part apprenticeship project to explore the root causes behind low recruitment across the profession. The aim is to identify practical, affordable solutions that help more employers take on and train apprentices, rebuilding the profession’s skills base in the process. In parallel, SNIPEF is working with wider construction industry partners to support a more coordinated response to the UK’s deep-rooted trade and technical labour shortages. *The State of Trade survey is conducted quarterly by SNIPEF to assess trading conditions, business confidence and workforce trends across the plumbing and heating profession. The Q2 2025 edition is based on responses from over 700 businesses, collected between July 1-7, 2025. Read the full State of Trade Q2 report here: www.snipef.org/publications/
low: 68% are unlikely to recruit an apprentice, with more than half of
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