{"id":139340,"date":"2024-05-03T11:16:04","date_gmt":"2024-05-03T10:16:04","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=139340"},"modified":"2024-05-03T11:16:04","modified_gmt":"2024-05-03T10:16:04","slug":"fmb-finds-almost-half-of-construction-firms-projecting-financial-struggles","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/fmb-finds-almost-half-of-construction-firms-projecting-financial-struggles\/139340\/","title":{"rendered":"FMB finds almost half of construction firms projecting financial struggles"},"content":{"rendered":"<h2>44% of Master Builder companies expect to make a loss or fall below expected margins in the first quarter of 2024<\/h2>\n<p>UK construction companies are facing a raft of financial struggles, according to the latest <a href=\"https:\/\/www.fmb.org.uk\/resource\/state-of-trade-survey-q1-2024.html\" target=\"_blank\" rel=\"noopener\">FMB State of Trade Survey for Q1 2024.<\/a><\/p>\n<p>69% of members reported that material costs increased in Q1 2024, up from 63% in Q4 2023.<\/p>\n<p>The impact of increased outgoings has led to 65% of members increasing the prices they charge, with 44% reporting that the business in on track to make a loss or fall below expected margins.<\/p>\n<p>Strained financial conditions are having a knock-on effect on other areas of the businesses, with over a quarter reporting that they are restricting hiring new staff as a consequence of increased outgoings.<\/p>\n<p>Other findings from the FMB State of Trade Survey for Q1 2024 include:<\/p>\n<h3>Market conditions reflect the austerity years<\/h3>\n<ul>\n<li>There has been a very moderate increase in total workload and enquires, but number are still negative, reflecting the same metrics seen in 2010 to 2013 when the country was buffeted by austerity measures.<\/li>\n<li>Employment over Q1 of 2024 has remained stable and matches similar figures seen in 2010 to 2013.<\/li>\n<li>44% of FMB members reported a decrease in enquiries.<\/li>\n<li>Workloads were up 6% on Q4 2023.<\/li>\n<\/ul>\n<p>Brian Berry, chief executive of the FMB said: \u201cLast year was <a href=\"https:\/\/www.pbctoday.co.uk\/news\/digital-construction\/construction-technology-news\/building-resilient-construction-business-payapps\/125812\/\" target=\"_blank\" rel=\"noopener\">challenging for small builders across the UK<\/a>, and while Q1 of 2024 has shown stabilisation, it is clear the situation remains concerning. The data being seen for workloads and enquiries are settling in negative figures, similar to those seen between 2010 and 2013, when the UK economy was particularly impacted by austerity measures and limited spending power. There are clearly deep-rooted problems within the UK economy that need addressing.\u201d<\/p>\n<h3>The skills shortage continues to cause financial struggles<\/h3>\n<ul>\n<li>Overall, difficulty in recruitment has slightly decreased, with the exception of general labourers who are more difficult to hire (28% struggled to hire them compared to 24% last quarter).<\/li>\n<li>33% of members are struggling to hire carpenters.<\/li>\n<li>28% are struggling to hire bricklayers, which has dropped considerably from 35% last quarter.<\/li>\n<li>Over a third of members report that jobs are delayed because they are struggling to hire skilled workers.<\/li>\n<\/ul>\n<p>Berry continued:\u00a0\u201cThere have also been positive signs to take from these figures. We have seen improvements in the availability of skilled workers, with bricklayers and carpenters becoming easier to hire, and overall workloads are up by 6% on the previous quarter.<\/p>\n<p>&#8220;However, with almost half of members reporting a decrease in enquiries, more than two thirds report escalating material costs, and 44% of Master Builder companies say their business is on track to fall below expected margins this year; it is adding up to a deeply alarming picture.\u201d<\/p>\n<div class=\"mk-custom-module-container\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>44% of Master Builder companies expect to make a loss or fall below expected margins in the first quarter of 2024.<\/p>\n","protected":false},"author":25,"featured_media":139341,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[908,431,592,660],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-139340","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-planning-construction-news","8":"tag-economy","9":"tag-plant-equipment-supplies","10":"tag-skills","11":"tag-skills-shortage"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>FMB finds almost half of construction firms projecting financial struggles<\/title>\n<meta name=\"description\" content=\"Financial struggles are rife in UK construction, as 44% of FMB companies expect to make a loss or fall below expected margins in 2024\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/fmb-finds-almost-half-of-construction-firms-projecting-financial-struggles\/139340\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FMB finds almost half of construction firms projecting financial struggles\" \/>\n<meta property=\"og:description\" content=\"Financial struggles are rife in UK construction, as 44% of FMB companies expect to make a loss or fall below expected margins in 2024\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/fmb-finds-almost-half-of-construction-firms-projecting-financial-struggles\/139340\/\" \/>\n<meta property=\"og:site_name\" content=\"Planning, Building &amp; 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