Fall in construction workloads, warns FMB

March 3, 2025

Workloads for small building companies fell by 8% in the last three months of 2024 , according to the latest Q4 2024 State of Trade Survey from the Federation of Master Builders (FMB).

The latest State of Trade Survey, looking at SME construction activity during the last three months of 2024, found that small building companies were continuing to battle against a deteriorating economic climate with workloads down by 8% and enquiries down by an alarming 23%.

Market conditions

Workloads decreased by net -11%, down from -5% on the previous quarter. 35% of members reported a decline in workloads.
Enquiries are down -23% in Q4, following on from previous declines of -9% in Q2 and -13% seen in Q3. 46% of members reported a decline in enquiries.
Employment over Q4 of 2024 has declined once again, seeing a net workforce change of -8%. The most common type of work for an FMB member were ‘Major Works’, followed by ‘Renovations’.

Skills

25% of members reported a decrease in the number of employees, which is similar to Q3 (23%) and Q2 (24%) but lower than Q1 2024 (28%)
37% of members are struggling to hire carpenters, up from 35% in Q3 2024
28% are struggling to hire bricklayers, remaining consistent with the previous quarter.
Difficulties in recruiting general labourers have decreased slightly, with 33% of members reporting difficulties, down from 34% of members in Q3 2024.
Challenges hiring roofers have increased from 16% to 17%, and painters and decorators are at 15%.
42% of members have reported shortage of skilled tradespeople has resulted in job delays.

Changes in prices and costs

Approximately 67% of members indicated that rising costs led to higher prices for their services, a remaining consistent with Q3 2024
52% of members who experienced rising costs reported lower-than-expected business profits or financial losses, no change from 52% in the previous quarter.
35% of respondents said that cost pressures have caused them to restrict their recruitment plans, a significant increase from 26% in Q3 2024. Around 8% revealed that their business viability was compromised, putting them at risk of closure.

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