24 THE INDUSTRY ADVOCATE
Brian Berry, chief executive of the Federation of Master Builders
PROBLEMS ARE MOUNTING FOR SME BUILDERS
Brian Berry of the Federation of Master Builders (FMB), explores the mounting problems SME builders are experiencing, despite workloads increasing. He looks at possible efforts to address shortages of finance and skills in particular, and wonders whether Government will reconsider its post-Brexit immigration policies.
64 PER CENT OF SMALL BUILDERS STRUGGLE TO HIRE CARPENTERS, AND 61 PER CENT ARE FACING PROBLEMS HIRING BRICKLAYERS
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he latest quarterly State of Trade Survey by the Federation of Master Builders (FMB) showed that workloads for construction SMEs grew in Q4 2018. These results are particularly impressive, and perhaps even surprising, given the political uncertainty firms are contending with, and the serious barri- ers that small building firms are facing. I’ve written before in this column about the challenges the construction industry is facing in hiring key trades, and this will be a familiar story to many in the industry. Unfortunately, it will not be surprising to hear that this latest research shows that 64 per cent of small builders are struggling to hire carpenters, and 61 per cent are facing problems hiring bricklayers. Indeed, carpenters and joiners have surpassed bricklayers as the trade in shortest supply for the first time in more than a year. A simple case of supply and demand means that these shortages are resulting in workers demanding
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higher wages, and this is causing issues for construction employers.
A TOUGH OUTLOOK Looking ahead, the picture doesn’t seem to be much brighter. Expectations for the future have become more pessimistic in comparison to the previous quarter. Two-thirds of construction SMEs foresee wage increases over the next six months, up from the previous quarter. This means that these firms’ already thin margins will be squeezed even further. What’s more, expected workloads over the next six months have dropped. These politically uncertain times are the enemy of small building firms – they rely on the confidence of homeowners to commission home improvement projects. This uncertainty is also to blame for the fact that almost half of construction SMEs are reporting signs of a weakening housing market. This latest FMB research also shows how
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