Workloads for small and medium-sized (SME) construction firms have taken a dip for the first time in six years, according to the latest research from the Federation of Master Builders (FMB).

The FMB’s State of Trade Survey for Q1 2019 shows that the array of problems for small, local builders have taken their toll and have now put the sector in negative territory. The key results are as follows:

• Overall SME workloads declined for the first time in six years as more respondents stated lower workloads (29%) compared with the final three months of 2018 (13%);

• However, expectations for the future have strengthened with 41% of construction SMEs forecasting higher workloads over the coming three months, up from 33% in Q4 2018;

• Skills shortages eased slightly among some occupations, most likely due to less competition for workers because of lower workloads. Bricklayers were once again the trade in most short supply with 64% of firms having difficulties hiring them; 

• A record-breaking 88% of builders anticipate that material prices will rise further in the next six months;

• Almost three-quarters (71%) of construction SMEs expect wages and salaries to increase over the next six months, up from 66% in the previous quarter.