FMB

London's SME construction sector growth continues to slow



Confidence among the SME construction sector in London has fallen for the fourth successive quarter, according to a new study.


The latest research from the Federation of Master Builders has revealed that more than half of construction SMEs (58%) are struggling to hire bricklayers, while a further 55% are finding it difficult to hire carpenters and joiners.

In terms of workloads, expected workloads and enquiries, the combined indicator for the performance of London’s construction SMEs fell five percentage points in Q1 2018 – compared with the previous quarter – to +10%.

“It is disappointing to see a downward turn in growth for London’s construction SMEs for the fourth consecutive quarter,” said Barry Mortimer, director at FMB London (pictured above).

“The results of the State of Trade Survey Q1 2018 have confirmed a clear and consistent pattern in London.

“Confidence and workloads for small builders in London have dropped off over the last year and a range of factors have contributed to these disappointing results.”

Barry pointed out that the sector had a tricky start to the year in London with the first quarter of 2018 being blighted by snow and freezing temperatures.

“The heavy snow showers meant many construction sites across the capital ground to a halt in February and March.

“However, the ‘Beast from the East’ was not the only constraint the sector had to contend with.

“London’s SMEs are also facing considerable constraints through the growing scarcity of skilled tradespeople.”



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