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News Release from: Federation of Master Builders (FMB) | Subject: FMB State of Trade Survey
Edited by the Buildingtalk Editorial
Team on 31 October 2003
FMB State of Trade Survey
The Federation of Master Builders' (FMB) State of Trade survey for the third quarter of 2003 shows builders workloads continue to rise.
The Federation of Master Builders' (FMB) State of Trade survey for the third quarter of 2003 finds clear evidence of a continued increase in both the workloads of the UK's small to medium-sized building firms and the numbers of people they employ This positive report, the 17th in succession, is bolstered by expectations of growth in both workload and employment in the fourth quarter
This article was originally published on Buildingtalk on 1 Nov 2004 at 8.00am (UK)
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However, the survey also highlights contrasting fortunes between public and private sector work.
Whilst the private sector remains the driving force behind the continued growth, Q3 returns for the public sector were, on the whole, less buoyant.
Commented Ian Davis, FMB director general: "The State of Trade survey provides an accurate snapshot of the UK construction market for SMEs, with healthy levels of growth and positive future expectations reported throughout the UK.
Further reading
Building slowdown for spring/summer 2005
The Federation of Master Builders (FMB) State of Trade report for the first quarter of 2005 saw an overall slowdown in both workloads and employment for small and medium-sized builders.
Building levelling off for the second quarter
FMB State of Trade Survey confirms slower growth in workload .
Building work slows in third quarter
FMB State of Trade Survey indicates end of long upward trend. During the last three months the growth in building work across the country was at its weakest since 1999.
We have, however, seen a marked difference this quarter between the public and private sectors.
Up to now, low interest rates have driven private new build and domestic RMI investment, but the public sector by comparison appears sluggish.
We will watch closely to see if this trend continues should interest rates rise." The survey shows growth across the UK.
41% of all builders reported higher workloads than in the second quarter, a rise of 3%.
The workloads of a further 42% remained steady during July, August and September.
Specialist contractors, which make up a fifth of the responses, performed particularly well, with 89% maintaining or increasing their workload.
In terms of employment trends, 31% reported an increase in their workforce in the third quarter - the strongest figure for more than a year - with just 9% seeing a reduction.
Looking ahead, 92% expect to either increase or maintain employment levels into the final three months of 2003.
Despite these healthy figures, recruiting skilled labour remains a problem, with 70% reporting difficulties sourcing skilled labour.
While this figure is 2% better than the previous quarter, skills shortages remain an overriding issue for builders.
Taking a closer look at work levels in Q3, private sector work continued to drive growth whilst public sector work faltered somewhat.
In private housing, 29% of builders saw an increase in new build work, while 60% maintained previous work levels.
29% reported an increase in domestic repair, maintenance and improvement (RMI) work and 55% saw work remain solid.
In contrast, new build and RMI work in the social housing sector fared relatively poorly, with more respondents (22% and 24% respectively) reporting a decrease in work than an increase (both 19%).
In non-residential markets, private work also performed well across the board whilst results were mixed for the public sector.
22% reported a fall in public repair and maintenance work (3% more than those reporting an increase).
On a more positive note, 23% reported an increase in non-residential public new build, compared to 10% who saw a decrease.
Looking ahead to the final quarter of 2003 and beyond, there is a strong expectation that the market will remain buoyant.
38% predict an increase in work levels, while 50% expect to maintain current levels - a more positive response than for the same period in 2002.
40% of all builders saw the level of new business enquiries increase in Q3, with 36% stating that enquiries had remained steady.
Analysed by type of work, however, there is a marked contrast between expectations for the private and public sectors.
The figures for residential and non-residential private sector work are all positive.
90% expect to increase or at least maintain their work level in new build private housing.
87% expect levels of domestic RMI work to remain constant or grow.
In contrast, 29% of builders expect a drop in social housing RMI work and just over one in five predict a decrease in social housing new build work.
These mixed expectations are mirrored by the pattern of new business enquiries, generally a good indication of work six months ahead, where private sector work was on the up with the public sector again lagging behind.
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