While demand for services remains high, the trade body found that ongoing challenges including payment delays, rising costs and a shortage of skilled workers, are placing increasing strain on the sector.

The research, based on SNIPEF’s 750 member companies, which collectively employ over 3,000 plumbing and heating operatives, shows that 38% of firms were busier than expected in the last quarter, with 84% anticipating steady or increased order volumes in the coming months.

Despite this optimism, 82% of businesses reported payment delays, primarily from larger contractors and small builders, and 57% noted a rise in non-payment incidents, adding further financial strain.

Profit margins have remained stable or slightly increased for the majority, with 49% of businesses reporting a slight improvement and 42% seeing no change, indicating resilient cost management in a challenging environment.

Additionally, 54% of businesses remain confident about the state of trade of the profession over the coming year, although only 23% expect to increase staffing in the next six months with 86% finding low availability of skilled plumbing and heating professionals in their area.

Finally, confidence in the UK economy remains cautious, with only 32% expressing optimism about economic conditions over the next year.

“With the Scottish Government’s budget on the horizon, there is an opportunity to put in place measures that will protect the future of this essential profession,” said Fiona Hodgson, SNIPEF chief executive. “Our members are committed to delivering quality services in their communities, but without fair payment practices and improved access to skilled workers, the path to growth remains challenging.”

The recent announcement by Chancellor Rachel Reeves to increase employer National Insurance (NI) from 13.8% to 15% is widely expected to add further cost pressures, reducing resources for vital investments in training and development.

“While the increased Employment Allowance will help smaller employers, the NI hike limits funds that could otherwise go towards essential skills training and development,” Ms Hodgson added.

In advance of the Scottish Government’s budget announcement, SNIPEF is calling on policymakers to address these critical issues.

“Supporting skills development, incentivising apprenticeships, and ensuring fair payment practices across the supply chain should be top priorities,” Hodgson said. “Such measures would help relieve the skills shortage and give our members the confidence to grow and continue delivering essential services across Scotland.”