Builders saw sharp drop in workloads at end of 2022
BUILDERS in Wales have seen a sharp drop in workloads and inquiries in the final quarter of 2022 as projects are put on hold amid spiralling construction cost inflation.
The latest State of Trade survey from the Federation of Master Builders (FMB) has found that the Welsh market activity continued to contract in the last few months of 2022 as growth in workloads and employment levels fell.
The new data for Wales shows a sharp decline in workload for Welsh builders, dropping to -8% from 18% in Q3.
The number of inquiries also dramatically fell from 27% in Q3 to -8% in Q4 2022, as builders saw a significant downturn in increased workloads.
Ifan Glyn, director of FMB Cymru, said: “These results point towards a worrying trend. In the face of a housing crisis and a dire need to upgrade the energy efficiency of our homes, we need our builders to be firing from all cylinders.
“Lack of access to skilled labour and the volatile cost of materials is the last thing that builders need. We must all double down our efforts to resolve these issues as they are crippling the industry’s ability to deliver. Failure to do so will have far-reaching consequences for communities across Wales.”
Across the UK, both workloads and inquiries decreased in Q4 2022 compared to Q3 2022 on balance in all sectors.
Some 41% of FMB members reported a fall in inquiries in Q4, with only 29% saying they saw an increase.
House-building activity has also dramatically declined, falling 17 percentage points from 1% in Q3 to -18% in Q4. Reported inquiries for new house-building projects dropped 11 percentage points from -8% to -19%.
In terms of skills, 14% of FMB members reported an increase in the number of employees within their company’s workforce in Q4 2022, with 19% saying that it had decreased. However, around a third of those surveyed said they were struggling to recruit carpenters/joiners, bricklayers and general labourers.
When it came to costs and pricing, 89% of FMB members reported an increase in material costs in Q4 2022, with 85% expecting material costs to increase in the first quarter of this year. Seventy per cent of builders said they have put up their prices for work.
The FMB said small local builders will be looking at the Westminster Spring Budget to see if there is a long-term plan to ensure that stability and growth is restored.