BUILDING firms in the north seen a slight improvement in workloads over the summer months, but growth remains sluggish, a new report out today states.
The Federation of Master Builders’ (FMB) State of Trade Survey for the third quarter of 2019, found that while reported workloads over July to September improved on the second quarter, they remained well below levels experienced throughout 2018.
It followed a significant drop in reported workloads in the north during the second quarter.
The UK-wide survey is based on the responses of 274 small and medium enterprises (SMEs) in the construction trade.
The FMB said the typical firm responding to its survey is a builder or contractor directly employing ten or fewer people.
According to the new survey, carpenters have overtaken bricklayers as the trade in shortest supply with over half (56 per cent) of construction SMEs struggling to hire carpenters and joiners and 54 per cent struggling to hire bricklayers.
Some 86 per cent of builders anticipate that material prices will rise further in the next six months, slightly up from 77 per cent in the second quarter of 2019.
Just over half (56 per cent) of SME construction companies expect higher salaries and wages over the next six months up from 51 per cent on the previous quarter.
Reacting to the report Gavin McGuire, director of FMB NI, said: “It is encouraging to see more builders reporting improved conditions after a disappointing second quarter of 2019.
“However, still more builders are reporting falling workloads than those reporting that they are increasing, leaving Northern Ireland as the only nation, or region, of the United Kingdom to have seen negative growth over the last quarter.”
Mr McGuire continued: “One way in which the industry could be supported to grow is through greater investment in infrastructure.
“Northern Ireland Water has been chronically underfunded for a number of years and this is starting to take its toll on SME house builders who are seeing the lack of infrastructure.
“This has led to a slow down in housing projects and is likely to have a huge impact on housebuilding activity over the coming years. No drains means no cranes.”
The FMB director added: “Northern Ireland Water should therefore secure the finance it needs to invest in the water system, with upmost urgency.
“Northern Ireland SME housebuilders rely on critical infrastructure such as drainage and water systems to build the homes we need.”
