Improved building output figures in the second quarter of 2024 offer a ‘glimmer of hope’ for the UK’s challenged construction industry, according to the Federation of Master Builders (FMB).

The FMB’s State of Trade Survey for Q2 2024 found a reported net 7% increase in workloads from the preceding quarter. Recruitment also improved, with a -2% change compared to the -11% recorded in the first quarter. 

These positive figures have been attributed to a more stable operating environment but the survey highlighted the ongoing skills shortage remains an issue for the industry. The survey found 41% of FMB members struggled to hire carpenters in Q2, up from 31% in the first quarter. At the same time, 29% were struggling to hire bricklayers, up from the 25% in the previous quarter. 

Overall, 43% of FMB members reported a shortage of skilled tradespeople had resulted in delays, up from 36% in the first quarter. Though price increases had fallen in the second quarter from the first quarter, with material costs rising by 64% and 69% in these respective periods, this was still having an impact on businesses.

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In the second quarter, 10% of FMB members reported having to make redundancies or terminate contracts due to cost pressures. This is up from the 9% reported in the previous quarter.