NEW research has found that almost half (47%) of UK master builder companies reported a fall in enquiries for new work in Q4 2023, leading to a 15% fall in workloads.
The findings were revealed in the latest State of Trade Survey from the Federation of Master Builders (FMB).
The FMB State of Trade Survey for Q4 2023 found there has been a decrease in total workload, enquires and employment over Q4 of 2023, in all sectors being worked on by small builders, including repair, maintenance and improvement.Â
Difficulty in recruitment has slightly decreased, however over a quarter of members reported a decrease in employees. 36% of members are struggling to hire carpenters with 34% struggling to hire bricklayers. Just under half of FMB members reported that jobs are delayed because they are struggling to hire skilled workers.
63% of members said material costs increased in Q4, down from 71% in Q3. The impact of increased outgoings has led to 66% of members increasing the prices they charge, with just under half reporting that the business in on track to make a loss or fall below expected margins. One in five report that they are restricting hiring new staff as a consequence of increased outgoings.
Brian Berry, chief executive of the FMB, described 2023 as ‘undoubtedly a difficult year’ for small building firms.
“Significantly, conditions for the repair, maintenance and improvement (RMI) sector, which had been the main driver for construction output, worsened for the first time,” he added. “The good news from our survey is the reported easing of material price rises with fewer master builder companies having to increase their prices for building work. However, with housebuilding rates continuing to remain low and the recent fall in RMI activity, an alarming downward trend is emerging for small builders, which will need to be addressed in the upcoming budget.”
