Pace of growth slows over summer for our smaller construction firms

among Northern Ireland’s smaller construction firms dipped in the third quarter of this year, according to the Federation of Master Builders (FMB) today.

A new report by the trade body also found that 86% of builders have reported increases in material prices during July to September, compared with 76% the previous quarter.

More than two-thirds (68%) said they are struggling to hire bricklayers.

The State of Trade Survey is the only quarterly assessment of the UK-wide SME construction sector. It confirmed that the pace of growth among smaller building firms here slowed between July and September compared with the three months previous.

Director of FMB NI Gavin McGuire (right) said: “Although we are still in positive territory, this new research undoubtedly carries some warning signs.

“Fewer than one-quarter of responses were positive in the third quarter of this year, down from nearly half in the second three months of 2018.

“This is hardly surprising givGROWTH en the wider context. The construction skills shortage is ever worsening, with the latest results matching the highest levels ever recorded in terms of the proportion of firms struggling to hire key trades like bricklayers. “What’s more, costs, including wages, salaries and material costs, are rising steadily meaning these firms’ already razor thin margins are being squeezed even further.”

The FMB survey also found that 59% of UK firms are struggling to

hire carpenters and joiners, however 58% did say that they expect salaries and wages to increase over the next six months.

The trade survey follows last week’s Construction Employers Federation report which found that 25% of local building firms said profit margins were worse than last year.

It also found that 82% of firms here believe the absence of an Executive has resulted in the loss of capital or tenders.

Gavin McGuire said construction firms here face extra barriers than their counterparts in Britain.

“The ongoing political turmoil in Stormont is seriously undermining our construction industry and the wider economy.

“The longer we lack a Government in Northern Ireland, the more insecure the private sector becomes.

“Political uncertainty is the enemy of small building firms who rely on the confidence of home owners to commission home improvement projects.

“Although generally construction firms are busy, the longterm pipeline is difficult to predict. With Brexit less than a year away, now more than ever we need strong and decisive political leadership that can deal with the serious challenges the construction industry faces.”