Confidence falls among plumbing and heating businesses

Data from SNIPEF's latest State of Trade report warns of mounting pressure on firms as labour shortages deepen and margins tighten

New figures reveal shrinking order books, rising costs, and deepening workforce shortages. These pressures mirror those across the wider construction sector, causing confidence in the plumbing and heating profession to plummet.

The Q2 2025 State of Trade report marks the first clear shift from stability to decline since the survey series began. The report’s outlook for the profession is now rated Stable to Weak.

While many businesses remain operationally steady, confidence in the months ahead is weakening. Just 17% of firms expect workloads to improve, while 37% report that their order books have fallen below expectations.

Profitability is also under strain, with 49% of firms reporting reduced margins. Rising input costs, reported by 96% of respondents, continued payment delays, and ongoing labour shortages add to the pressure.

“These are not isolated pain points. They are symptoms of deeper, compounding pressures within our profession and the wider construction sector,” said Fiona Hodgson, chief executive of SNIPEF.

This warning follows broader signs of a slowdown across the construction industry. The June Construction Purchasing Managers’ Index (PMI) showed that UK activity contracted at the fastest pace in six months.

Private housebuilding saw the steepest drop, with output still well below pre-2023 levels, reinforcing concerns about future demand and capacity across the built environment.

SNIPEF is also calling on the government to forcefully tackle the persistent issue of late or delayed payments in construction, alongside the growing numbers of unresolved disputes, unjustified retention practices, and write-offs that are creating cashflow challenges for many SMEs within the sector.

Key findings from the Q2 2025 State of Trade report:

• Order books are weakening: 37% of firms report declining forward workloads
• Profit margins under pressure: 49% report reduced profitability
• Costs continue to rise: 96% say input costs are up, with 30% seeing significant increases
• Skilled labour in short supply: 67% report low availability, only 4% describe it as high
• Apprenticeship recruitment remains low: 68% are unlikely to recruit an apprentice, with more than half of respondents stating they were doubtful.
• Economic confidence has eroded: Just 13% are confident in the UK economy, compared to 49% expressing pessimism