NEW research has highlighted a ‘continued upward trend’ in the repair, maintenance, and improvement (RMI) building work in Q2 this year.
The findings were revealed in the latest State of Trade Survey from the Federation of Master Builders (FMB). Despite this boost for workloads, the research also found that housebuilding is lagging behind, with more FMB members reporting lower workloads and enquiries in this sector than those reporting more.
The survey revealed that the increase in total workload and enquires is primarily driven by a continued strong rebound in the repair, maintenance and improvement sector. 40% of FMB members reported an increase in workload, with only 18% reporting a reduction compared to last quarter.
In terms of skills, the difficulty in recruitment was found to be easing but 38% of members are still struggling to hire carpenters and 29% are having difficulty hiring bricklayers. A quarter of members can’t get hold of general labourers, while over half of all members reports that jobs are delayed because they are struggling to hire skilled workers.
79% of members reported that material costs increased in Q2 2023 with 72% expecting this to continue into the next quarter. The impact of increased outgoings has led to 69% of members increasing the prices they charge and 19% said they are restricting hiring new staff as a consequence of increased outgoings.
Brian Berry, chief executive of the FMB, said, “While there are plenty of positives to take from this quarter’s State of Trade Survey, there are still worrying signs for housebuilders. Workloads are up, driven by a strong repair, maintenance and improvement sector and encouragingly we’re also seeing pressure on obtaining skilled labour easing.
“Housebuilding has been hit badly, despite a slight increase on last quarter more members are reporting less work than they are more, and enquiries continue to look bleak. The fall in housebuilding is worrying because housing supply is a key component of a growing the economy and unlocking a mobile workforce.”
Berry added that the survey also points towards other areas of concern, with just under half of FMB members saying they expect profits to be lower than expected and around one in five saying they are restricting hiring new staff.
“With inflation dipping marginally, we’ll need to see over the coming months if this has any positive effects on bottom lines,” he concluded.
