Small builders bullish despite rising costs

Aaron Morby 7 years ago
Share

Small construction firms enjoyed rising workloads in the first three months of 2017, despite growing concerns over the cost of labour and materials.

According to the Federation of Master Builders latest trade survey one in two members predict rising workloads in the coming months, with just 5% predicting a decrease in activity;

Around 85% of builders believe that material prices will rise in the next three months and around six out of 10 are reporting problems finding carpenters – a post financial crisis high.

Brian Berry, chief executive of the FMB, said: “Workloads rose in every part of the UK, with particularly positive results in the devolved nations.

“Given the concerns that wider consumer confidence might be weakening, it’s encouraging that smaller construction firms aren’t sensing any drop-off in demand for their services.

“Indeed, despite Article 50 being triggered and the growing likelihood of a hard Brexit, these latest results demonstrate that builders are increasingly confident about the immediate future, with one in two forecasting higher workloads during the next quarter.”

The survey covers the period before the announcement of a snap General Election, which may well cool consumer demand in the coming months.

Berry warned: “The combined effects of rising material costs and the ever-worsening construction skills crisis will therefore be reason enough for SME construction firms to be cautious in their optimism.

“If growth in real household income remains flat, and if consumer confidence is shaken by the impending snap General Election and the triggering of Article 50, there are plenty of potential pitfalls for builders to navigate.

“Nevertheless, as of yet, the much anticipated ‘Brexit effect’ has yet to hit what is considered to be the bellwether sector of consumer confidence and wider economic health.”

Latest news

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
1 day ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
24 hours ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
1 day ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
1 day ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
1 day ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
1 day ago

McAlpine signs £500m Broadgate dual towers deal

Work to start on iconic 36-storey and 21-storey towers
2 days ago

Worker rescued from collapsed four metre deep trench

Fire crews take six hours to save trapped builder near Blackwall Tunnel
2 days ago

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
3 days ago

Greenwich University tenders £300m framework

Up to five firms will carry out upgrade and newbuild work at three campuses
2 days ago

Work starts on Manchester 26-storey Obsidian tower

Contractor Domis starts Salboy's 10th Manchester scheme in seven years
2 days ago

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
2 days ago

Delancey submits £400m King’s Cross lab plans

200,000 sq ft lab/office project will be built above railway and tube tunnels just 4.5m below
3 days ago

Winners revealed for £150m fire safety framework

New deal will help organisations comply with the Building Safety Act
2 days ago

Sellar plans £500m City tower next to Walkie-Talkie

Consultation starts on London 60 Gracechurch Street tower
3 days ago

Severfield ends year on high with record order book

Orders top £500m with strong future pipeline of opportunities ahead
3 days ago

Second senior director exits National Highways

Commercial director Malcolm Dare set to move on to new role
3 days ago

New scheme fuels London lab building boom

Plans in for 160,000 sq ft Whitechapel scheme near Royal London hospital
3 days ago

Contract race starts for next £155m section of A9 dualling

Prior Information Notice published for Tay Crossing to Ballinluig stretch
4 days ago

£55m Sheffield build-to-rent scheme approved

Demolition to start later this year for 158-flat Sheffield Garden project
4 days ago

London back as most expensive place to build in world

Capital leapfrogs Geneva to top costliest construction rankings
4 days ago

Gas supplier Regent to buy TClarke for £90m

£491m turnover listed building services specialist to be sold
4 days ago

Steel contractor Billington launches into bridge market

Steelwork firm hires staff from failed architectural and bridge specialist SH Structures
4 days ago

McGee employees benefit from rise in profits

Pre-tax profit doubles boosting payouts for Employee Ownership Trust
4 days ago

Lendlease veteran is latest new McAlpine director

Paul Sims joins as Operations Director after 40 years at rival contractor
5 days ago

Costain signs site labour supply deal with four firms

Contractor to use only a quartet of providers for temporary labour supply
4 days ago

BAM go-ahead for Leeds 200,000 sq ft office

Latitude Yellow will complete final plot at Doncaster Monk Bridge site
5 days ago

VolkerFitzpatrick wins £30m logistics job

Latest deal to build five distribution units for Prologis UK
5 days ago

Trio win new Scape utilities consultancy framework

Perfect Circle, AtkinsRéalis and Arcadis win places on
4 days ago

Precast firm FP McCann cleared after immigration raid

Home Office takes no action after public raid on construction site
5 days ago

Contractor services