Builders have reported increasing workloads but are warning that an impending skills shortage could hit house building.
The Federation of Master Builders’ ‘state of the trade’ survey for the last quarter found the net balance for the private new housing sector jumped by 13 percentage points to +15, remaining in positive territory for the fourth consecutive quarter.
The share of firms reporting an increase in workloads went up to 30% from 26% in the third quarter, while those reporting decreasing workloads fell to 15% from 23%.
More than half of firms (55%) experienced no change to their workloads.
However, half of small construction firms reported difficulties hiring roofers and shortages of electricians and plasterers was at a four-year high with 32% and 39% reporting issues getting staff respectively.
Brian Berry, chief executive of the FMB, said: “We’ve been experiencing a severe shortage of bricklayers and carpenters for quite some time – these latest statistics show that skills shortages are now seeping into other key trades such as roofers and plumbers.
“Indeed, of the 15 key trades and occupations we monitor, 40% show skills shortages at their highest point since we started to feel the effects of the skills crisis in 2013 when the industry bounced back post-downturn.
“This growing skills deficit is driving up costs for small firms and simultaneously adding to the pressure being felt by soaring material prices linked to the weaker pound.
“The Government needs to be taking note of the worsening construction skills shortage now that we know that the UK will be negotiating a hard Brexit. The Prime Minister must ensure that the immigration system that replaces the free movement of people serves key sectors such as construction and house building.
“If the Government wants the objectives of its Housing White Paper to be realised, it will need to ensure the construction sector has the skilled workers it needs to build these new homes.”
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