Results for Q4 2023 found there has been a decrease in total workload, enquires and employment in all sectors being worked on by small builders, including repair, maintenance and improvement.

Difficulty in recruitment has slightly decreased, however over a quarter of members reported a decrease in employees. 36% of members are struggling to hire carpenters with 34% struggling to hire bricklayers. Just under half of FMB members reported that jobs are delayed because they are struggling to hire skilled workers.

63% of members said material costs increased in Q4, down from 71% in Q3. The impact of increased outgoings has led to 66% of members increasing the prices they charge, with just under half reporting that the business in on track to make a loss or fall below expected margins. One in five report that they are restricting hiring new staff as a consequence of increased outgoings.

In Scotland, the fall in overall workloads decreased slightly from 8% in Q3 2023 to 7% in this quarter. There has been a notable decline in enquiries, with a decrease from a net change of 8% to -13% on balance, indicating a challenging picture ahead.

Gordon Nelson, Scotland director of the FMB said: “The last three months of the calendar year typically don’t yield the best of results for the building industry. The shortening days and the inclement weather combining to dampen builders spirits and stave off potential clients from enquiring about building works. Whilst there is no immediate cause for alarm in the slight decrease in workloads experienced by local building companies across Scotland in Q4 2023, we are eager to see if there will be a rise in enquiries for new works as spring slowly approaches.

“With the recent ease in material price increases, our builders will be anxious to see if consumer confidence picks up over the next two or three months. The early spring being so critical to filling a forward pipeline of works for builders. If we see a rise in enquiries for home improvement and refurbishment works, this will be a boon for builders focusing on the domestic sector.”

Mr Nelson added: “On a broader scale, our construction industry is vital to driving economic growth across Scotland and it is central to our net zero ambitions. We welcome the recent launch of the new Transformation Action Plan for the Scottish construction sector. It is this collaboration between the government and industry that offers a unique opportunity to move the whole sector forward and build up our local building companies.”