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23/01/2018
Skills Crisis Intensifies For Small Construction Firms - FMB
Small firms in the UK are finding it increasingly harder to hire bricklayers, carpenters and joiners according to the Federation of Master Builders (FMB).
The organisation's latest State of Trade Survey reveals the skills crisis is intensifying, with 68% of firms stating they are struggling to hire bricklayers while 63% are struggling to hire carpenters and joiners – the highest figures since records began in 2008.
Elsewhere, 48% of firms said they were having difficulties hiring plumbers and electricians, with 46% saying the same for plasters and 30% for floorers.
In addition, new enquiries and expected workloads for construction SME's also declined sharply in Q4 of 2017, with firms building new homes showed a negative net balance for the first time since 2013.
Small firms predicting rising workloads in the coming three months have dropped from 41% in Q3 2017 to 38%, while 87% of builders believe that material prices will rise in the next six months, up from 82% in the previous quarter. Overall, 61% of construction SMEs expect salaries and wages to increase in the next six months.
Brian Berry, Chief Executive of the FMB, said: "Skills shortages are sky rocketing and it begs the question, who will build the new homes and infrastructure projects the Government is crying out for. The Government has set itself an ambitious target to build 300,000 homes every year in England alone. More than two-thirds of construction SMEs are struggling to hire bricklayers which is one of the key trades in the building industry.
"This has increased by nearly 10% in just three months which points to a rapid worsening of an already dire situation. What’s more, nearly as many are facing difficulties hiring carpenters and joiners.
"These figures are the highest we’ve noted since records began a decade ago. As a result, the wages for these increasingly scarce skilled tradespeople continue to rise sharply; that’s a simple consequence of supply and demand. This, coupled with the fact that small construction firms continue to face significant material price increases, will inevitably squeeze their margins and put a brake on growth."
(LM/MH)
The organisation's latest State of Trade Survey reveals the skills crisis is intensifying, with 68% of firms stating they are struggling to hire bricklayers while 63% are struggling to hire carpenters and joiners – the highest figures since records began in 2008.
Elsewhere, 48% of firms said they were having difficulties hiring plumbers and electricians, with 46% saying the same for plasters and 30% for floorers.
In addition, new enquiries and expected workloads for construction SME's also declined sharply in Q4 of 2017, with firms building new homes showed a negative net balance for the first time since 2013.
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Small firms predicting rising workloads in the coming three months have dropped from 41% in Q3 2017 to 38%, while 87% of builders believe that material prices will rise in the next six months, up from 82% in the previous quarter. Overall, 61% of construction SMEs expect salaries and wages to increase in the next six months.
Brian Berry, Chief Executive of the FMB, said: "Skills shortages are sky rocketing and it begs the question, who will build the new homes and infrastructure projects the Government is crying out for. The Government has set itself an ambitious target to build 300,000 homes every year in England alone. More than two-thirds of construction SMEs are struggling to hire bricklayers which is one of the key trades in the building industry.
"This has increased by nearly 10% in just three months which points to a rapid worsening of an already dire situation. What’s more, nearly as many are facing difficulties hiring carpenters and joiners.
"These figures are the highest we’ve noted since records began a decade ago. As a result, the wages for these increasingly scarce skilled tradespeople continue to rise sharply; that’s a simple consequence of supply and demand. This, coupled with the fact that small construction firms continue to face significant material price increases, will inevitably squeeze their margins and put a brake on growth."
(LM/MH)
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