{"id":51781,"date":"2019-01-30T12:20:00","date_gmt":"2019-01-30T12:20:00","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=51781"},"modified":"2019-01-30T12:20:00","modified_gmt":"2019-01-30T12:20:00","slug":"problems-for-builders-are-rising-according-to-fmb","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/problems-for-builders-are-rising-according-to-fmb\/51781\/","title":{"rendered":"Problems for builders rise according to FMB"},"content":{"rendered":"

Construction industry growth<\/a> could be held back by a weakening housing market, rising costs and an increasingly nervous banking sector, according to the Federation of Master Builders<\/a> (FMB)<\/h2>\n

The FMB\u2019s latest State of Trade Survey<\/a> showed that workloads for construction SMEs grew in Q4 2018. Despite this, there are serious concerns about the mounting problems facing small building firms. These include 42% of builders have detected signs of a weakening housing market. One in five construction SMEs have had projects stalled in the past three months due to delays to loans, or loan refusals, from the banks.<\/p>\n

Also, carpenters have overtaken bricklayers as the trade in shortest supply with nearly two-thirds (64%) of construction SMEs struggling to hire carpenters and joiners and 61% struggling to hire bricklayers.<\/p>\n

Looking ahead, expectations for the future weakened for the third consecutive quarter, with just one third (33%) of construction SMEs anticipating higher workloads in Q1 2019. This is down from 36% in the previous quarter.<\/p>\n

It is also worthwhile noting 87% of builders anticipate that material prices will rise further in the next six months, slightly up from 86% in Q3 2018. Two-thirds (66%) of construction SMEs expect wages and salaries to increase over the next six months, up from 58% in the previous quarter.<\/p>\n

Brian Berry, Chief Executive of the FMB<\/a> said: \u201cWorkloads for small construction firms continued to rise in the last quarter of 2018 but after 23 consecutive quarters of growth, these latest results could mark a tipping point.<\/p>\n

\u201cMounting Brexit uncertainty is starting to have a tangible effect and the indicators are not good with almost half of builders reporting signs of a weakening housing market. Together with ever-rising costs due to material price hikes and labour shortages, the headwinds are blowing in the wrong direction for the UK construction sector<\/a>.\u201d<\/p>\n

Berry continued: \u201cCarpenters and joiners overtake bricklayers as the trade in shortest supply for the first time in more than a year. Naturally, these shortages are resulting in workers commanding higher wages and this is causing issues for construction employers.<\/p>\n

These rising costs, coupled with steadily increasing material prices since the UK referendum, are squeezing the margins of constructions SMEs \u2013 making a profit has never been more challenging<\/a>.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

Construction industry growth could be held back by a weakening housing market, rising costs and an increasingly nervous banking sector, according to the Federation of Master Builders 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