FMB NEWS
INCREASED WORKLOADS FOR SME CONTRACTORS IN THE THIRD QUARTER OF 2024 IS POSITIVE NEWS, INDICATING A RESILIENT INDUSTRY IN NI, ACCORDING TO THE FEDERATION OF MASTER BUILDERS…
Gavin McGuire, NI Director for the FMB.
Easing of barriers and investment in infrastructure among hopes for 2025
Some positive results in the State of Trade Survey Q3 2024 provide reassurance about current construction workloads. But with material costs going up and a shortage of available workers, along with infrastructure frailties, there are real challenges ahead. WHAT DID THE SURVEY REVEAL? The survey, reaching some 300 contractors in NI and analysing the third quarter of 2024 in Northern Ireland, found that a positive increase in overall workloads was reported by 33% of members. There has been no change in enquiries noted from the previous quarter. Gavin McGuire, Northern Ireland Director for the Federation of Master Builders (FMB), said, “Despite many infrastructure challenges facing the industry in relation to water connections and power, FMB members have shown remarkable resilience to keep working, and it’s encouraging to see that workloads in Northern Ireland have increased over the past three months. “As the new Programme for Government is finalised by the Stormont Executive, we hope this will see barriers in planning and housing eased, along with a strong financial commitment to invest in our housing and
basic infrastructure. We need to see the Executive prioritise investment in skills and vocational training to future-proof our industry.” HOW DO NI’S RESULTS COMPARE WITH OTHER UK REGIONS? UK market conditions: • Workloads are down 7% on the previous quarter. • 32% of members reported a decline in workloads, with 41% seeing no change. • Enquiries are down 3% on Q2 of 2024. What effect are changes in prices and costs having? • 65% of members indicated that rising costs led to higher prices for their services. • 54% of members who experienced rising costs reported lower-than- expected business profits or financial losses. • 26% of respondents said that cost pressures have caused them to restrict their recruitment plans. • Around 10% revealed that their business viability was compromised, putting them at risk of closure. Brian Berry, Chief Executive of the FMB, said, “The FMB’s latest State of Trade
Survey for Q3 2024 reveals a challenging economic climate for small building companies across the UK, with 32% of FMB members reporting falling workloads over the past quarter.
“Enquiries are also down, as is employment, with over a third of
members struggling to recruit bricklayers and carpenters. What is concerning is that the poor numbers reported by builders seem to be here to stay as they have been a constant throughout 2024. The last time such a negative trend was reported was in the years following the financial crisis of 2008. “The Government missed a key opportunity in the October Budget to announce serious funding to tackle the skills crisis in Britain, while tax rises, such as the increase to employers’ National Insurance contributions, creates additional barriers with firms already struggling to recruit staff.” “We need to see the Executive prioritise investment in skills and vocational training to future- proof our industry.”
To find out more about the benefits of becoming an FMB member, speak to its membership team on +44 (0)3303 337 777, email membership@fmb.org.uk or visit www.fmb.org.uk
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