NEW research has revealed that confidence in the plumbing and heating profession has dipped slightly, but the industry appears to be ‘remaining stable’ in the face of wider UK financial and economic uncertainty.
The findings were revealed in the latest State of Trade report from the Plumbing and Heating Federation (SNIPEF).
Demand for plumbing and heating professionals remains steady, with 44% of businesses feeling confident or very confident about the year ahead. This has fallen from 50% in Q4 and 54% in Q3. The data suggests stability in trading conditions persist, but there are underlying concerns about future financial prospects on the back of the ‘underwhelming’ Spring Statement and ongoing global economic uncertainty.
The report also revealed 47% of plumbing and heating businesses hold a pessimistic view of the UK economy, compared with just 19% in Q3, 2024. SNIPEF said this reflects growing concern over rising employer costs, persistent workforce shortages, material prices, and the lack of a clear economic strategy from government.
Fiona Hodgson, chief executive of the Plumbing and Heating Federation, said, “Confidence in the economy has taken a real hit. Our members are managing current workloads but are increasingly uncertain about what lies ahead. The Spring Statement failed to provide the reassurance or clarity needed to plan with confidence.
“We urgently need an economic reset – one which places value on workforce development, ensures prompt and fair payment across the supply chain, and unlocks opportunity for small firms to grow and invest.”
The profession has shown resilience in terms of trading performance. 47% of businesses indicated workloads for the next six months are in line with expectations. A further 30% reported stronger-than-expected forward bookings, while 22% anticipate reduced demand.
In terms of profitability, 58% of business reported the same, or increased, profit margins. However, 39% of businesses experienced a decline, an 11% rise from Q4.
The report also highlighted additional challenges, with only 28% of businesses expecting to increase staffing in the next six months; 69% reporting low availability of skilled professionals in their area; and only 22% likely to recruit an apprentice in the coming year.
Fiona Hodgson added, “Our profession remains stable, and I commend our members for weathering the current economic climate to remain profitable despite the financial pressures that are being felt across the construction sector. They have been resilient and highly adaptable; but resilience is not infinite.
“If we’re to safeguard long-term strength across the plumbing and heating profession, we need joined-up action from all governments to reduce volatility, support business confidence and develop the workforce of the future.”
The survey is based on responses sought from more than 700 plumbing and heating member businesses and more than 50 affiliate and partner organisations of the federation.
The full Q1 2025 State of Trade report can be found at: www.snipef.org/publications
