The trade body’s latest State of Trade Survey for Q2 2024 found that its members reported a net change in workloads was up by 7% on Q1 2024, with slightly more members reporting an increase than decrease. Reported enquires were up 3%.

Employment over Q2 of 2024 has improved significantly (net change -2% from the -11% reported previously), while 42% of FMB members reported a decrease in enquiries with 33% seeing an increase.

On skills, 54% of FMB members reported no changes in employment levels in Q2 2024 compared with Q1 2024, while 41% of members are struggling to hire carpenters, up from 31% in Q1 2024.

Around 29% are struggling to hire bricklayers, slightly up from 25% in the previous quarter, and 43% of members have reported shortage of skilled tradespeople has resulted in job delays, up from 36% in Q1 2024. Cancellations are slightly down at 8%, compared with 9% previously.

The survey also found 64% of members reported that material costs increased in Q2 2024, down from 69% in Q1 2024. The impact of increased outgoings has led to 67% of members increasing the prices they charge, with 52% reporting that their business is on track to make a loss or fall below expected margins, significantly up on 44% in Q1 2024.

Around 10% of members report having had to make staff redundant or terminate contracts due to cost pressures, slightly up from 9% previously.

Throughout the UK, the overall workload has seen a slight increase of 2%. This is an improvement from the -5% reported in Q1 2024. Regionally, Wales has shown a positive jump from -27% in Q1 2024 to 18% in Q2 2024. Both Northern Ireland and Scotland have also experienced significant growth, each recording a net change of 33%. On the other hand, England saw a slight decrease, with a net change of -4%.

In terms of national enquiries, while there is still an overall decline, net change has slightly improved to -9%, compared to the -11% reported in Q1 2024. Northern Ireland experienced a substantial drop in enquiries, with a net change of -38%. England also saw a decrease, with enquiries falling to -19%. In contrast, Wales experienced an increase in enquiries, with a net change of 18%, and Scotland saw a notable improvement with a 25% rise in enquiries.

In summary, the total national workload across the UK increased by 2%, with significant improvements in Northern Ireland, Scotland, and Wales, and a slight decline in England. National enquiries showed an overall decline, with notable decreases in Northern Ireland and England, and positive trends in Wales and Scotland.

Brian Berry, chief executive of the FMB said: “The FMB’s latest survey for Q2 2024 has shown continued stability. While this represents a clear improvement on the challenging market conditions SME builders were experiencing in late 2023, and offers a glimmer of hope for the future, there is still substantial room for improvement. Increasing workloads are a positive sign that the construction industry is slowly growing.

“However, firms are continuing to face difficulties in recruitment, which has been an ongoing issue. It’s also worrying to see a significant rise in the number of businesses reporting lower than expected profits this quarter, 55 per cent, up from 44 per cent in Q1 2024, which shows the challenges the UK continues to face.

“The new government has used its early weeks in office to announce promising plans to boost house building rates and reform the planning system, which may result in a much-needed economic stimulus. However, the UK is currently experiencing a construction skills crisis, and concerns remain about viability without the workforce in place to deliver new homes. The Prime Minister’s speech laying the groundwork for Skills England was hopeful but lacked detail. We need to see a long-term skills plan to deliver the Government’s ambitions for growth.”