A budget for Britain’s builders is needed to boost slowing workloads and to reverse contracting enquiries and employment, warns the Federation of Master Builders (FMB).
Data from the FMB’s latest State of Trade Survey for November to December 2020 found that:
Workload
- One in three (27%) builders reported lower workloads in Q4, rising from 21% in the previous quarter.
- Four in 10 (42%) reported no change in workload, continuing a sluggish recovery from the pandemic.
Employment
- Employment dropped back into negative territory after growing for just two months in 2020.
- 23% of builders are struggling to hire carpenters/joiners.
- 22% are struggling to hire bricklayers.
Prices and costs
- 82% of respondents reported material price increases.
- Yet just 29% of builders are increasing the prices they charge for work, down from 37% in Q3, meaning more small firms are taking the hit as costs remain high.
Workload in different places
While activity remained in positive territory for builders in England, Wales and Northern Ireland, respondents in Scotland reported a significant drop in workload and enquiries. This is due in part to the Scottish lockdown restrictions mandating only essential works to be carried out inside people’s homes. The challenging weather conditions in the winter months also hampered output for those in the housebuilding or industrial or commercial sectors.
Meanwhile, more locally, activity in northern England was the strongest Q4 2020, while output dipped, particularly in the Midlands.
Looking ahead, enquiries for firms in London dropped significantly into negative territory, while respondents in the Midlands signalled a stronger recovery. One respondent in London said that the state of the market is very uncertain now because of the COVID-19 pandemic.
Commenting on the findings, Brian Berry, chief executive of the FMB, said: “The FMB’s latest State of Trade Survey of its members across the UK reveals that 27% of builders experienced falling workloads in the last two months of 2020. Given the government’s commitments to ‘build back better’, next month’s budget needs to support the construction sector to help create much needed jobs and to propel the economy forward.
“The Chancellor must use the budget to cut VAT on home improvements, to make it easier for households to get works done, including green upgrades. An extension of the Stamp Duty holiday is also essential to breathe new confidence into the housing market.”
Brian concluded: “Given that one in four builders are struggling to hire bricklayers and carpenters, the government should be encouraging people looking for new opportunities to consider the construction industry. However, builders need greater support to train, while contending with rising material prices. The government needs to extend the apprenticeship grant uplift beyond March 2021 so that SMEs are rewarded for their training at this difficult time.”
The full report can be read here.
