Lack of skills undermines industry recovery, survey finds

​​​​​​​The SME State of Trade Survey found carpenters are the hardest to recruit, followed by roofers, and plumbers/HVAC

The UK construction industry is picking up pace in 2025 with increased workloads and enquiries for new work, but the downside is that new builds are being constructed at a slower pace due to rising prices and even cancelled projects.

This is according to the new SME State of Trade Survey, carried out by the Federation of Master Builders (FMB) and the Chartered Institute of Building (CIOB).

More projects are underway, and more workers are being hired. However, despite this recovery, many firms struggle to find skilled tradespeople and manage rising costs, which could disrupt renovations and new builds.

A severe shortage of skilled tradespeople is holding projects back:

• 33% of firms say carpenters are the hardest to recruit, followed by 32% roofers, and 28% plumbers/HVAC.
• 64% struggle to find workers with building safety regime knowledge, and 59% can’t find staff with sustainable building and new tech skills.
• 61% have been directly affected by shortages, causing job delays (49%) and cancellations (23%).

Even where skills are available, planning processes are slowing things down - 38% of firms experiencing delays say planning is the primary cause.

This is a problem for SME builders, who are essential to delivering the UK’s housebuilding targets but are too often held back by red tape.

Making matters worse, the costs of new builds are still climbing:

• 75% of builders have seen material prices rise.
• 67% report higher wages.
• 61% have increased the prices they charge.

The survey also reveals that net workload increased by +25%, reversing the decline of –11% in Q4 2024.

This marks the first simultaneous growth in workload, enquiries, and employment since Q2. 2023. Net enquiries rose to +34%, up from –23% in Q4 2024 and net employment change was +26%, the most substantial quarterly improvement since Q1 2010.