Subscribe to our Construction Newsfeed
UK Construction Directory
Search our 157,474 companies....

Construction News

15/10/2009

Road to Economic Recovery Getting Worse For Builders, Warns FMB

Construction News Image
The state of the construction industry for small builders is getting worse, warns the Federation of Master Builders (FMB) in response to data from its latest State of Trades survey of member's workloads for the third quarter of 2009.

The workload for the building sector over the last three months as a whole deteriorated with 50% of FMB firms reporting falling workloads with the industrial sector being hardest hit. The fall in workload is mirrored by a fall in confidence with 36% of firms expecting their workloads to decline over the next three months to the end of 2009. The only glimmer of hope is the fact that 15 % of FMB firms reported that they had actually increased their workload over the last three months.

Richard Diment, Director General of the FMB said: "The worst of the recession is far from over for thousands of small building firms. Despite speculation concerning a possible recovery in the general economy, it remains clear that construction has still to hit rock bottom and that any recovery in this sector is still quite some way away. Government measures to kick start the economy are still not reaching small building companies which are pleading for more direct help.
-- Advertisement --
hss



"It is also interesting to note that calls to our Research and Information Department are down 17% overall, possibly due to lower workloads and less technical advice being required as a result. However, calls relating to debt recovery, legal advice and wages have increased by as much as 29%. The FMB has received more calls asking for help with recovering debt from clients who are unwilling or unable to pay. There has also been a marked increase in calls for advice on reducing staff hours rather than laying off staff or making them redundant which most employment calls were concerned with in quarter two."

Specialist builders are faring better than general builders in the recession. Around 17% of specialist builders reported that their workforce had actually increased over the last three months compared to 14% for general builders. Specialist builders are also more optimistic than general builders regarding employment over the next three months with 19% anticipating higher staffing levels and 58% predicting no change. This compares to 16% and 51% respectively for general builders.

Mr Diment added: "Getting the banks to lend again is now critical if the building industry is not to grind to a halt. What this recession shows is that those with specialist skills in the construction sector are best able to survive which is why it is so critical that the Government does all it can to help retain our skills base if the UK is to enjoy a sustained recovery and not repeat the mistake of the last recession in the early 1990s when more than 500,000 jobs were lost in construction and not replaced."

(CD/GK)

Latest Construction News

09/07/2025
Network Space Developments has formally submitted an outline planning application to redevelop the former Cadent Gas Works site on Winwick Road, just north of Warrington town centre. The plans propose up to 100,000 sq ft of high-quality employment space, intended to accommodate a range of industria
09/07/2025
The City of London Corporation has granted planning permission for two major high-rise schemes at opposite ends of the City's historic skyscraper cluster, reinforcing the Square Mile’s reputation as a global business and cultural hub. The approved projects, a 45-storey tower at 63 St Mary's Axe and
09/07/2025
Construction firm Kier has signed a Pre-Construction Services Agreement (PCSA) with global healthcare company Haleon to deliver a state-of-the-art Oral Health Innovation Hub in Weybridge, Surrey. The landmark project, announced by the UK Government during its International Investment Summit, will p
09/07/2025
One of the UK's largest housebuilders, Persimmon Homes Severn Valley, has submitted detailed proposals for the construction of 562 new homes in Cribbs Causeway, as part of the next phase of its major Fishpool Hill development near Bristol. The latest reserved matters applications cover phase two of
09/07/2025
The Transpennine Route Upgrade (TRU) has reached a significant milestone, following five consecutive weekends of intensive engineering work between Leeds and York to advance electrification of the line. As part of the ongoing upgrades, engineers have now installed 7.5 kilometres of overhead line eq
09/07/2025
Plans to transform the Teviot Estate in Poplar have reached a major milestone, with Tower Hamlets Council granting a resolution to approve the £800 million redevelopment at its Strategic Development Committee meeting on Tuesday, 8 July. The Hill Group and housing association Poplar HARCA are leadin
09/07/2025
Wates has joined Stepnell, Morgan Sindall, Kier, and BAM as a Gold Corporate Partner of the Centre for Construction Best Practice (CCBP), marking a major milestone in efforts to improve collaboration, innovation, and delivery standards across the UK construction sector. The five major contractors a
09/07/2025
Roger Bullivant Limited (RBL) has been appointed by main contractor McLaren to carry out piling works for a new Boxing Academy and school development in Hackney, East London. The high-profile project, commissioned by the Department for Education and the Boxing Academy Trust, will transform an unfin
09/07/2025
Key redevelopment projects at Central Library and Peterscourt, part of the wider Vine Towns Fund initiative, are set to move forward as Cabinet prepares to review an update and approve contracts at a meeting on 15 July. The update outlines the final phase of the £25 million Vine project, which is p
09/07/2025
Seven of the UK's largest housebuilders have offered a combined £100 million settlement in response to a Competition and Markets Authority (CMA) investigation into alleged information sharing practices that raised competition concerns. The CMA launched the probe last year amid suspicions that Barra
Efco UK LtdAqua Direct LtdLakeside HireStuart CanvasGolden Gates & ShuttersMake I.T. WorkPJ & Sons LocksmithsPJ & Sons MetalworkPaving Superstore LTDA1deSIGNS