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News Release from: Federation of Master Builders (FMB) | Subject: Building industry downturn
Edited by the Buildingtalk Editorial
Team on 27 April 2006
Building industry downturn in building
work
During the first three months of 2006, the growth in building work across the country was at its weakest since 1999.
Building industry sees continued downturn in levels of building work During the first three months of 2006, the growth in building work across the country was at its weakest since 1999
This article was originally published on Buildingtalk on 27 Jun 2003 at 8.00am (UK)
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The Federation of Master Builders quarterly State of Trade survey reports a further fall in workload and reduction in employment since the last quarter of 2005.
For 2006, over a third (38%) of builders nationwide reported a fall in workload against 28% saying work had increased, however there were significant variations between regions.
Small and medium-sized firms in England saw the biggest falls in workload, including London, which previously bucked the trend.
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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 North East provided an exception with 44% of firms seeing an increase in workload over last quarter.
In Scotland over half (56%) of firms reported increases in workload and in Wales more than a third (37%) had seen increases.
The report showed an overall downturn in all building work except new build of private housing, which has seen an improvement over last quarter.
The most significant change was that half of firms (49%) reported a decrease in of social housing.
Both England and Northern Ireland reported continuing decreases in repair and improvement work, the staple diet of two-thirds of the FMB's small and medium-sized builders and anticipated further decreases this year.
However the North East, Yorkshire, the Humber and Scotland and Wales predict increased demand for RMI work.
Over three quarters of firms (82%) said that levels of employment had either remained the same or were lower than Q4 2005, with the exception of the East of England where almost all (94%) of firms reported the same or an increase in employment and the North East, where two thirds (82%) saw the same or more.
Over half (52%) of West Midlands firms reported a fall in employment.
As expected, the result for anticipated change in workload is stronger this first quarter of 2006 than the last quarter of 2005, with 31% anticipating an increase in workload.
Strongest expectations in terms of anticipated workload and future enquiries are in the North East, Scotland and Northern Ireland.
Looking ahead, in most regions at least seven out of 10 firms expect no change in their workforces in the April-June quarter.
Commenting on the latest survey findings FMB director general, Ian Davis said: "These results indicate a continuation of the slow performance of the last two quarters of 2005, which is not great news, but there are big regional variations and not every region is faring so badly".
"On a more positive note, the report suggests that FMB members are anticipating some increases in both workload and employment for the second half of 2006.".
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