Construction industry prepares for downturn

Latest News Thu, Aug 1, 2019 8:04 AM

Construction industry bosses are reorganising their workforce in preparation for a potential downturn, with higher levels of sub-contracting and lower levels of direct employment, according to new research by the Federation of Master Builders (FMB).

Key results from the FMB’s State of Trade Survey for Q2 2019, which is the only quarterly assessment of the UK-wide SME construction sector, are as follows:

  • There was a decrease in employment levels among small construction firms for the first time in more than five years with over one fifth (21%) of employers reporting a reduced workforce;
  • After a difficult start to 2019, workloads for construction SMEs grew slightly compared with the previous quarter with more employers (27%) reporting higher workloads than in the first quarter of this year (22%);
  • Bricklayers are the trade in shortest supply with nearly two-thirds (60%) of construction SMEs struggling to hire these tradespeople and 54% struggling to hire carpenters and joiners;
  • Looking ahead, expectations for the future weakened slightly. Just over one third of construction SMEs (37%) are forecasting higher workloads over the coming three months, down from 41% in Q1 2019.

Brian Berry, Chief Executive of the FMB, said: “Years of Brexit uncertainty have resulted in construction bosses starting to change how they employ their workforce.

"To ensure their firms are ready for any economic shock-waves later this year, employers are reducing their number of direct employees and relying more on sub-contractors who are easier to shed if work dries up. The construction industry has always used a significant proportion of subbies but the fact that direct employment is decreasing, points to Brexit nerves among construction bosses. This is the reality on the ground of what happens when years of uncertainty are inflicted on the construction industry.

"Furthermore, apprenticeship training has taken a hit as construction bosses are reluctant to take on young people when they can’t be sure of future projects going ahead.

“Worse still, the fear is that using more subbies can lead to a drop in the quality of our builds. Direct employees, who are well-known to their firm, are much more likely to follow the ethos of their company and build to the right standard.

" If construction bosses are trying to protect their businesses by employing more subbies, they might not always know how good these subbies are. Rebalancing the workforce may seem like a good idea at the time, but it could lead to reputation-damaging mistakes. If a downturn is on the horizon, reputation is everything and construction employers can scrutinise the quality of their workforce far more easily when they’re on the books.”

Featured News

Specification news
RIBA’s annual conference returns in new flagship...

RIBA is bringing back its annual conference with the launch of RIBA27, a new flagship...

Read More >>

Specification news
Shoemakers Museum crowned Supreme Winner at 50th...

The Brick Development Association (BDA) marked a milestone 50th anniversary of the...

Read More >>

BUILDING PRODUCT LIBRARY - LATEST BROCHURES

CemGold Brochure

CemGold
By IPP

Download Now >>

Mada ProGuard Brochure

Mada ProGuard
By IPP

Download Now >>

Scandinavian Furniture Thoughtfully Made  Brochure

Scandinavian Furnitu...
By BJELIN

Download Now >>

Fire Rated Loft Ladders  Brochure

Fire Rated Loft Ladd...
By Premier Loft Ladders...

Download Now >>

Flooring Collection 2026 Brochure

Flooring Collection...
By Gerflor

Download Now >>

BUILDING PRODUCT DIRECTORY - LATEST PRODUCTS

Magply multi-functional board
Magply multi-functional board

Rainscreen CladdingAs a high performance, multi-functional board Magply features a Magnesium...

Read More >>

Magply recovery and protection boards
Magply recovery and protection boards

Magply recovery and protection boards have been developed to meet the roofing industry needs for a...

Read More >>

Safeshield XT Reflect
Safeshield XT Reflect

Safeshield XT Reflect is an A2-s1, d0 fire rated construction membrane for the use in high risk,...

Read More >>

CONSTRUCTION VIDEOS - LATEST VIDEOS

Fortitude™ Steel Railing Systems: Adjustable Off-the-Shelf Balustrade Guide
Fortitude™ Steel Railing Systems: Adjustable Off-the-Shelf Balustrade Guide

Fortitude Steel Railings and Balustrades are one of the most versatile, off-the-shelf, steel...

Watch Now >>

Pro-Railing® Stainless Steel Handrail Systems: 6 Modern Balustrade & Glass Railing Solutions
Pro-Railing® Stainless Steel Handrail Systems: 6 Modern Balustrade & Glass Railing Solutions

Pro-Railing® – our Stainless Steel Handrail Component System with six stunning ranges to choose...

Watch Now >>

Why Professionals Choose Outdure QwickBuild | Aluminium Deck Frame Case Study
Why Professionals Choose Outdure QwickBuild | Aluminium Deck Frame Case Study

This case study explores a stunning designer terrace featuring the Outdure QwickBuild system,...

Watch Now >>