Construction Trade Survey August 2017 - £120

Growth Expectations Dampened by Costs and Uncertainty

According to the Construction Trade Survey, the In the second quarter of 2016, 47% of heavy side product second quarter of 2017 was a positive one for the manufacturers and 45% of those on the light side reported construction industry. Compared to a year earlier, an increase in sales compared to a year earlier. Building construction product manufacturers recorded an activity also increased in Q2, with output reported higher increase in sales, output was reported to have by 22% of main contractors and 30% of specialist increased for main contractors and specialist contractors. In addition, 24% of construction SMEs and 13% contractors, and workloads rose according to SME of civil engineering contractors reported an increase in builders and civil engineering contractors. This workloads during the quarter. Forward-looking indicators matches the latest release from the ONS, which suggest the construction supply chain shares a less showed a 0.4% annual increase in construction optimistic view on the industry’s near-term outlook, output. In quarterly terms, however, as GDP growth however. Enquiries to specialist contractors and SME remained weak at 0.3%, construction output fell builders increased in Q2, but net balances were lower than 1.3%, the worst outturn in almost five years. in Q1, at 20% and 36%, respectively. Similarly, 29% of heavy Although this figure may be revised up as more side manufacturers (down from 62% in Q1) and 30% of light quarterly data becomes available, expectations for side manufacturers (compared to 53% in Q1) anticipated an near-term activity in the Construction Trade Survey increase in product sales over the next 12 months. Order indicate that the supply chain is less optimistic. books rose during the quarter for one-third of main contractors in private new housing, but were lower, on In Q2, main contractors’ order books increased for balance, in commercial, public non-housing, public new private new housing and repair and maintenance housing and industrial. These four sectors account for a sectors, but were reported lower in public new third of total output. In infrastructure, only 3% of civil housing, public non-housing, private industrial and engineering firms reported an increase in orders in Q2. private commercial. Furthermore, orders and enquiries balances for specialist contractors The effects of the weak Sterling are still being felt in rising weakened from 50% in Q1, whilst lower balances costs. A balance of 84% of civil engineers , 93% of heavy side were also recorded for product manufacturers’ manufacturers and all of those on the light side experienced expectations for sales over the next quarter and an increase in overall costs in Q2. Raw materials, wages and

year. Forward-looking indicators for SME builders salaries, along with fuel and energy costs for heavy side

were largely unchanged from Q1, however, whilst firms were the key drivers of construction cost inflation. civil engineers’ orders returned to positive territory. Contracting firms across the industry reported rises in tender prices in Q2, on balance, although 44% of main Construction cost inflation continued in Q2, driven contractors and 60% of specialist contractors left tender by raw materials costs for product manufacturers prices unchanged. Not surprisingly, this was accompanied by and main contractors. The lagged impact of the a squeeze on profit margins, suggesting that not all the Sterling depreciation in 2016 was also apparent in higher input costs are being passed on to clients. rising fuel and energy costs, particularly for heavy

side manufacturers. Higher input costs have This report is compiled by the Construction Products resulted in rising tender prices for civil engineers, Association and brings together results that survey and whilst main contractors and specialist members of Build UK, the Civil Engineering Contractors contractors raised tender prices in Q2, on balance, Association, Construction Products Association, Federation of Master Builders and National Federation of Builders.

Output & Sales

Construction Products Sales Volumes Construction product sales growth in Q2 Heavy Light Year ahead 100 47% of heavy side manufacturers and 45% of light side manufacturers, 80 on balance, reported that product sales were higher than a year 60 earlier in Q2. The heavy side balance fell from a balance of 65% in the 40

20 first quarter, whereas the balance for light side manufacturers 0 strengthened from 38% in Q1. Looking ahead, 29% of heavy side -20 manufacturers and 30% of light side manufacturers anticipated an Balance of firms, changeon year a earlier -40 increase in sales in the next 12 months. -60 13Q2 13Q4 14Q2 14Q4 15Q2 15Q4 16Q2 16Q4 17Q2 Source: Construction Products Association

Building Contractors’ Output Output growth for building contractors 100% Main contractors Specialist contractors On balance, 22% of main building contractors reported that 80% construction output rose in 2017 Q2 compared with a year earlier. 60%

40% This compared to 31% reporting a decrease in Q1. 44% of main

20% contractors reported an increase in output in Q2, whilst 22% of

changeon yeara earlier - 0% respondents reported that output was lower. For specialist

-20% contractors, output increased according to a balance of 30% of -40% respondents. This compared to all specialist contractors reporting an

Balance of firms 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2

Source: Build UK and NFB increase in Q1.

Main Contractors’ Output - 2017 Q2 Rises in four sectors for main contractors Private new housing Main contractors reported an increase in output in four sectors in Public new housing Q2. On balance, 67% of main contractors reported a rise in private Private industrial new housing, 25% in public new housing, 20% in private commercial Private commercial and 17% in public non-housing. A zero balance was reported in private Public non-housing industrial. A decrease in output was reported by a balance of 23% of Housing R&M main contractors for housing r&m and a balance of 4% in non-housing Non-housing R&M

-40% -20% 0% 20% 40% 60% 80% r&m.

Balance of firms - change on a year earlier Source: Build UK and NFB

SME Contractors’ Workload SME workloads increased once again 40% In Q2, the net balance for overall workloads remained in positive 35%

30% territory for the 17th consecutive quarter and rose by three 25% percentage points to 24%. The proportion of firms reporting rising 20% workloads rose (39% vs 35%), whilst the proportion of those

changeon yeara earlier 15% - reporting lower workloads rose to 15% from 14%. A positive 10%

5% workloads balance was recorded in all construction sectors, except

0% public sector repair and maintenance.

Balance of firms 13Q2 13Q4 14Q2 14Q4 15Q2 15Q4 16Q2 16Q4 17Q2

Source: FMB

Civil Engineering Contractors’ Workload Workloads growth for civil engineers 70% Workloads increased across Great Britain in Q2, the 16th straight 60%

50% quarter of growth since 2013 Q3. 13% of firms, on balance, reported

40% that workloads had increased, compared to 8% in Q1. For England,

30% 32% of firms, on balance, reported an increase in workloads in Q2, change change ona earlier year - 20% compared to a balance of 21% in Q1. After reporting a negative 10% balance in Q1 (-40%), workloads increased according to 67% of firms, 0% on balance, in Wales. In Scotland, workloads declined according to Balance Balance offirms -10% 13Q2 13Q4 14Q2 14Q4 15Q2 15Q4 16Q2 16Q4 17Q2 24% of firms, on balance, the lowest since 2012 Q2.

Expectations

Upbeat expectations among manufacturers Anticipated Sales of Construction Products - 2017 Q2 Product manufacturers’ expectations for sales growth over the Up by over 5%

next year weakened in Q2. 21% of heavy side manufacturers and Up by not more than 5%

Heavy 30% of light side manufacturers anticipated sales over the next No change year would rise ‘significantly’, by over 5%. A further 29% of heavy Light Down by not more than 5% side firms and 20% of light side firms anticipated further rises in sales of up to 5%. However, 21% of firms on the heavy side and Down by over 5% 20% on the light side anticipated a fall in sales over the next year. 0% 10% 20% 30% 40% 50% 60% 70% 80% Proportion of firms - over the next year Source: Construction Products Association

Mixed order books for contractors in Q2 Building Contractors’ Order Books by Sector - 2017 Q2 Main contractors’ order books were reported to be higher in private Private new housing new housing (33% on balance), housing r&m (69%) and non-housing Public new housing r&m (39%) in Q2 compared to the previous quarter. Q2 order books Private industrial were reported to be lower than in Q1 in public new housing, Private commercial Public non-housing according to a balance of 25%. Main contractors also reported weaker Housing R&M orders in industrial, commercial and public non-housing (balances of Non-housing R&M 30%, 20% and 14% respectively) during Q2. -50% -30% -10% 10% 30% 50% 70% 90%

Balance of firms - change on previous quarter Source: Build UK and NFB

SME enquiries increased in Q2 SME Enquiries 50% Despite falling by 4 percentage points to 36%, the net balance for total 45% enquiries remained in positive territory for the seventeenth successive 40% 35% quarter in Q2. Just under half of respondents (48%) reported higher 30% enquiries, down from 50% in the first quarter, whilst around 13% of 25%

20% changeon year a earlier firms stated lower enquiries, rising from 11% in the previous quarter. - 15% By sector, enquiries were reported to have increased in residential, 10% 5% public non-housing, commercial and both public and private non- 0% housing r&m. Balance of firms 13Q2 13Q4 14Q2 14Q4 15Q2 15Q4 16Q2 16Q4 17Q2 Source: FMB

Specialist orders and enquiries increased Specialist Contractors’ Orders & Enquiries 50% Orders Enquiries In Q2, a balance of 20% of specialist contractors reported an increase 40% in enquiries, decreasing from the balance of 50% that reported a rise 30% 20% in Q1. Half of specialist contractors reported that enquiries increased quarter earlier 10%

and 30% reported that enquiries were lower compared to the 0% changeon previous quarter. In terms of new orders in Q2, 30% of specialist - -10% -20%

contractors reported that new orders were higher than the first -30%

quarter of 2017 and 20% reported they were lower, leaving a balance -40%

15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 Balance of firms

of 10%. Source: Build UK

Infrastructure orders rose in Q2 Civil Engineering Contractors’ Orders 70% Orders compared to 12 months ago increased on balance, according 60% to only 3% of firms in Great Britain. This compares to a balance of 9% 50% reporting a fall in the first quarter. For England, 7% of firms, on 40% 30% balance, reported an increase in orders in Q2, compared to 17% in

change change on a year earlier 20% - Q1. In Wales, half of respondents, on balance, reported an increase in 10% orders in Q2 following two consecutive quarters of decline. Orders in 0% -10%

Scotland decreased, on balance, according to 3% of firms. Balance offirms -20% 13Q2 13Q4 14Q2 14Q4 15Q2 15Q4 16Q2 16Q4 17Q2

Costs

Construction Products Manufacturers’ Unit Costs Cost pressures increased in Q2 Year Ahead Heavy Light 100 In Q2, cost increases were reported by 93% of heavy side 90 80 manufacturers, on balance, compared to 73% in Q1 and the highest 70 balance since 2011 Q2. Similarly, all light side firms, on balance, 60

50 reported rising costs in Q2, increasing from 80% in Q1 and reaching changeon year a earlier - 40 the highest balance since 2008 Q3. Looking forward, manufacturers 30 20 expected cost pressures to remain elevated over the next 12 months, 10

Balance of firms 0 with 93% of heavy side firms and 90% of light side firms anticipating 13Q2 13Q4 14Q2 14Q4 15Q2 15Q4 16Q2 16Q4 17Q2 Source: Construction Products Association increasing costs, on balance.

Construction Products Manufacturers’ Costs - 2017 Q2 Raw materials drove cost inflation Taxes The key driver of cost inflation in Q2 was raw materials, owing to the Wages & salaries weaker Sterling exchange rate and rising global commodity prices.

Energy costs Light Reflecting this, 87% of heavy side firms and 100% of light side firms

Fuel costs Heavy reported that raw materials rose over the past year. For the light side,

Exchange rates this was the highest balance since records began in 2011 Q1. Fuel and

Raw materials energy costs were also noted as a key pressure for both heavy and

0% 20% 40% 60% 80% 100% light side firms. Exchange rates were also cited by 57% of heavy side

Balance of firms - against year ago Source: Construction Products Association firms and 78% of light side firms, the highest balance on record.

Building Contractors’ Costs Costs for contractors rose again in Q2 100% Main contractors Specialist contractors Main contractors reported a rise in costs in Q2. On balance, 88% of 80% respondents stated that costs had increased compared to a quarter

60% earlier. Within this, no main contractors reported that costs changeon previous

- decreased. For specialist contractors, a balance of 53% reported an quarter 40% increase in overall building costs. Within this, no respondents 20% reported a decrease in costs and 47% reported that building costs

Balance of firms 0% were unchanged during the quarter. 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2

Source: Build UK and NFB

Main Contractors’ Costs by Type - 2017 Q2 Materials costs rose for contractors

Material costs Materials costs remained the key driver of cost rises for main building contractors during the second quarter of 2017. A balance of 88% of Labour costs contracting firms reported that materials costs rose in Q2, with 75%

All building of firms, on balance, also reporting labour costs were higher over the costs quarter. On balance, 44% of main contractors reported a rise in

Tender prices tender prices in Q2, with the same proportion reporting that tender

prices were unchanged from the previous quarter. 0% 20% 40% 60% 80% 100%

Balance of Firms Source: Build UK and NFB

Civil Engineering Activity — Net Balance of Costs Costs rose for civil engineers In Q2, 71% of firms in Great Britain reported that costs increased by Increased by over 5% up to 5% compared to 12 months earlier and 14% reported increases Increased by up to 5% of over 5%. Overall, a balance of 84% of firms reported an increase in No change costs, the same as in Q1. In England, 75% of firms, on balance,

Fallen by up to 5% reported an increase in costs, in Scotland, costs increased, on balance, according to 91% of firms and in Wales, all firms, on balance, reported Fallen by over 5% an increase in costs over the last 12 months. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Costs, Profit and Payment

Margins fall for main contractors Main Contractors’ Tender Prices & Profit Margins Tender Prices Profit Margins 60% 50% of main contractors reported an increase in tender prices in the 50% second quarter of 2017 (compared to Q1) and 6% reported a 40% decrease, resulting in balance of 44%. However, 44% also reported no 30% 20%

change. Profit margins were reported to have decreased, with 13% of changeon previous

- 10% quarter main contractors, on balance, reporting a fall in profit margins in Q2. 0% This worsened from a balance of 7% that reported a decrease in profit -10% -20%

margins in Q1 and 13% that reported an increase in 2016 Q4. Half of Balance of firms -30% 13Q2 13Q4 14Q2 14Q4 15Q2 15Q4 16Q2 16Q4 17Q2 contractors reported that profit margins were unchanged in Q2. Source: Build UK and NFB

Tender prices rose for civil engineers Civil Engineering Contractors’ Tender Prices New Work Tender Prices R&M Tender Prices Compared to 12 months ago, tender prices were higher, on balance, 80% for 53% of firms for new construction work, and 46% for r&m work. 60% In England, 52% of firms, on balance, reported higher tender prices for

new construction work , and 41% for r&m. In Scotland, approximately 40% change change on a year earlier half (51%) of respondents reported an increase for new construction - 20% work and 38% for r&m, on balance. In Wales, on balance, 92% of

respondents, reported an increase an in tender prices for new 0% Balance Balance of firms 13Q2 13Q4 14Q2 14Q4 15Q2 15Q4 16Q2 16Q4 17Q2

construction work, whilst 83% of firms reported increases for r&m. Source: CECA

Tender prices rise for specialists in Q2 Specialist Contractors’ Tender Prices & Profit Margins 30% Tender prices Profit margins On balance, 6% of specialist contractors reported an increase in tender prices during the second quarter of 2017. However, 60% of 20% specialist contractors reported that tender prices were unchanged in 10%

0% changeon previous

Q2. 20% of respondents indicated an increase in profit margins - quarter relative to the previous quarter and another 20% of respondents -10%

reported that margins fell, resulting in a zero balance for a second -20%

consecutive quarter. Two-thirds of respondents reported profit Balance of firms -30% 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 margins were unchanged from Q1. Source: Build UK

17% of contractors paid in under 30 days Contractors’ Payment Periods - 2017 Q2 In Q2, only 5% of building contractors (main contractors and specialist 80%

contractors) were reported as being paid within 30 days. A further 60% 47% of contractors reported payment between 31 and 45 days, and 26% reported payment in 46-60 days In Q2, 21% of contractors 40% reported receiving payment in a period of greater than 60 days.

Percentage of Contractors 20%

0% < 30 Days 31-45 Days 46-60 Days 61-90 Days > 90 Days

Source: Build UK

Payment disputes for contractors Contractors’ Disputes - 2017 Q2 100% 11% of building contractors (main contractors and specialist contractors) reported that they had been involved in a dispute in the 80%

second quarter, a decrease from the 17% that reported a dispute in 60% Q1. There was only one cause of disputes in the quarter: variations.

40% Percentage of Contractors 20%

0% Variations Delays Payment Site Error in Other conditions design

Employment & Capacity

Main Contractors’ Difficulty Recruiting Site Trades Contractors struggled to recruit site trades 100% All Trades Bricklayers Plasterers Carpenters Overall, 27% of main building contractors reported difficulties 80% recruiting general on-site trades in Q2. The supply of plasterers was

60% the largest concern for main contractors in the quarter, with 54% of main contractors reporting difficulties with recruitment of this on-site 40% Proportionfirmsof trade. 43% of firms reported recruitment difficulties in the 20% recruitment of both carpenters and bricklayers in the second quarter.

0% 13Q2 13Q4 14Q2 14Q4 15Q2 15Q4 16Q2 16Q4 17Q2

Source: Build UK and NFB

Product Manufacturers’ Employment Trends Employment prospects remained positive Heavy Light Year 100 Ahead The rise in sales during 2016, together with expectations of further 80 increases during 2017, has seen product manufacturers increase 60 employment. In Q2, one-third of heavy side manufacturers and 30% of 40

changeon yeara earlier light side manufacturers, on balance, reported that employment rose

- 20

0 on a year earlier. Looking ahead, hiring intentions continued to remain

-20 positive. On balance, 40% of heavy side firms and 30% of light side

Balance of firms -40 firms anticipated increasing headcount during the next 12 months. 13Q2 13Q4 14Q2 14Q4 15Q2 15Q4 16Q2 16Q4 17Q2

Source: Construction Products Association

Employment Trends Within SME Contractors SME employment increased in Q2 12% In the second quarter of 2017, the net balance for total employment 10% 8% within SME contractors was 11%, unchanged from Q1. This marked

6% the fourteenth consecutive quarter that the balance has remained in changeon yeara

- 4%

earlier positive territory. The proportion of respondents stating that there 2% 0% had been an increase in employment levels rose from Q1, at 24% -2% (21% in Q1). At 13%, the proportion of firms reporting that

Balance of firms -4% 13Q2 13Q4 14Q2 14Q4 15Q2 15Q4 16Q2 16Q4 17Q2 employment had decreased was also higher than in Q1 (10%).

Source: FMB

Main Contractors Working at 90% to Full Capacity Capacity eased for main contractors 60% The proportion of main building contractors working at between 90% 50% and full capacity was reported at 53% in Q2. This is above the five- 40% year average capacity usage of 34% and the proportion reported in 30% 2017 Q1 and 2016 Q4. In Q2, a further 20% of main contractors 20%

to to FullCapacity were reported to be working at between 76% and 90% of their full

10% capacity during the quarter, resulting in a total of 73% operating at

0% Proportion Firms of Working at 90% over 75% capacity. 13Q2 13Q4 14Q2 14Q4 15Q2 15Q4 16Q2 16Q4 17Q2

Source: Build UK and NFB

Specialist Contractors’ Capacity - 2017 Q2 Specialists’ capacity utilisation eased 70% 38% of specialist contractors reported that they were working at over 60% 90% capacity in Q2. In total, 69% reported capacity utilisation over 50% 75%. On balance, 20% of specialist contractors anticipated an increase 40% in output over the next quarter, and 40% of specialist contractors, on 30%

20% balance, anticipated a rise in output over the coming year. Insufficient Proportionfirmsof 10% demand was ranked as the most likely constraint on activity over the

0% coming 12 months, but materials costs and the availability of labour 90% to Full 76 - 90% 61 - 75% 51 - 60% 26 - 50% 0 - 25%

Constraints, Investment & Trade

Demand the key concern for manufacturers Construction Products Manufacturers’ Constraints - 2017 Q2 Demand was reported as the key constraint on sales growth over the No constraints Imports next 12 months. 43% of heavy side manufacturers and 64% of light Raw material prices

side manufacturers reported that demand was likely to be the key Material supply Heavy Capacity constraint on sales during the next 12 months. For heavy side firms, Light the other expected major constraints were; capacity (29%), material Finance availability Labour availability supply (14%), labour availability (7%) and raw material prices (7%). For Demand

the light side, 27% of manufacturers reported labour availability as a 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

constraint and 9% cited raw material prices. Proportion of firms - over next year Source: Construction Products Association

Capital investment one of the key priorities Construction Products Manufacturers’ Investment - 2017 Q2

In Q2, on balance, 50% and 47% of heavy side firms reported that E-business investment in product improvement and plant & equipment, Developing export markets respectively, was higher than a year earlier. A balance of 36% Product improvement Light R&D reported higher investment in e-business, whilst a balance of 29% was Heavy reported for structures and customer research. A balance of 78% of Customer research light side firms reported a rise in investment in product improvement, Plant/equipment Structures whilst investment in research and development and e-business was 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% higher for a balance of 75% and 56% of light side firms, respectively. Balance of firms - against year ago Source: Construction Products Association

Investment focus on product improvement Product Manufacturers’ Anticipated Investment - 2017 Q2

On the heavy side, product improvement was the focus of capital E-business Developing export investment intentions for the next 12 months, with half of markets manufacturers, on balance, anticipating higher capital investment in Product improvement R&D Light this area. 43% also anticipated investment to increase in each of plant Heavy Customer research & equipment, customer research and e-business. For firms on the light Plant/equipment side, 67% and 56% anticipated investment to increase in product Structures improvement and e-business respectively. 44% of light side firms, on 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% balance, also anticipated increasing investment in R&D. Balance of firms - over next year Source: Construction Products Association

Mixed performance for exports in Q2 Construction Products Export Sales Volumes Heavy Light 100 Year In Q2, 30% of heavy side manufacturers reported a rise in exports Ahead 80 compared with a year earlier, against a balance of 22% reported in 60 Q1. On balance, no light side firms in Q2 reported an increase in 40 export sales compared with a year earlier. This compares to a balance

changeon year a earlier - of 17% reporting a rise in Q1. Looking forward, 11% of heavy side 0

manufacturers and one-quarter of light side manufacturers anticipated -20

a rise in exports, on balance, over the next 12 months. On the light -40

Balance of firms 13Q2 13Q4 14Q2 14Q4 15Q2 15Q4 16Q2 16Q4 17Q2

side, this was the lowest balance in three years. Source: Construction Products Association

Sterling depreciation and strong demand Key Factors Adversely Affecting Exports - 2017 Q2

40% of heavy side product manufacturers and 55% of light side firms Other

produced solely for the domestic market in Q2. Of those that did Economic conditions export, exchange rate conditions was the key factor influencing Global Light export volumes, according to 44% of heavy side firms and half of light competition Change in labour Heavy side firms. Other conditions, such as intra-group activity were also costs cited by 22% of manufacturers on the heavy side, whilst half of light Exchange rate conditions

side firms noted global competition as another key factor influencing 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% export volumes in Q2.

About the Build UK Survey

Build UK provides a strong collective voice for the contracting supply chain in construction. Build UK brings together 27 of the industry’s largest Main Contractors and 40 leading trade associations representing over 11,500 Specialist Contractors. Build UK was created as a result of a merger between the National Specialist Contractors’ Council (NSCC) and UK Contractors Group (UKCG) in 2015. Enquiries to:

David Bishop, Build UK, 6-8 Bonhill Street, London EC2A 4BX T: 0844 249 5351 Email: [email protected] Website: www.BuildUK.org

About the Civil Engineering Contractors Association (CECA) Survey

The Civil Engineering Contractors Association (CECA) has over 300 member firms that carry more than 80% of all civil engineering work in Great Britain. The CECA survey of civil engineering workload trends, in which more than a third of the membership takes part, tests for changes over the past year in contractors’ workload, workforce, order books, cost trends, and tender prices. It also examines the supply situation for key resources, and contractors’ expectations of trends in new orders and employment in the coming 12 months. Enquiries to:

Alasdair Reisner, CECA, 1 Birdcage Walk, London SW1H 9JJ T: 020 7340 0454 Email: [email protected] Website: www.ceca.co.uk

About the Construction Products Association Survey

The Construction Products Association represents the UK’s manufacturers and suppliers of construction products, components and fittings. The Association acts as a single voice for the construction products sector, representing the industry-wide view of its members. The sector has an annual turnover of more than £50 billion and accounts for over 1/3 of total construction output. For further information on the content and availability of these publications please contact:

Rebecca Larkin, Construction Products Association, 26 Store Street, London WC1E 7BT T: 0207 323 3770 Email: [email protected] Website: www.constructionproducts.org.uk

About the Federation of Master Builders (FMB) Survey

The Federation of Master Builders (FMB) is the largest trade association in the UK construction industry representing thousands of firms in England, Scotland, Wales and Northern Ireland. Established in 1941 to protect the interests of small and medium-sized (SME) construction firms, the FMB is independent and non- profit making, lobbying for members’ interests at both the national and local level. Within its membership, around 45% of FMB members build new homes either as their primary function or as part of the suite of building services they provide, but most are primarily active in the domestic RM&I market. The FMB is committed to raising quality in the construction industry and offers a free service to consumers called ‘Find a Builder’. Enquiries to: Sarah McMonagle, FMB, David Croft House, 25 Ely Place, London, EC1N 6TD

About the National Federation of Builders (NFB) Survey

The National Federation of Builders (NFB) represents around 1,500 builders and contractors across England and Wales. In addition to providing specialist advice and business services, the federation, with a network of four regional offices, lobbies local, national and European government on a range of issues to sustain positive trading conditions for members. With origins dating back to 1876, today's NFB is a modern organisation providing the medium sized contractor and smaller builder with an unparalleled package of services. Enquiries to: Paul Bogle, NFB, Spectrum House, Suite AF29, Beehive Ring Road, Gatwick, West Sussex, RH6 0LG T: 01293 855 203 E-mail: [email protected] Website: www.builders.org.uk

This report has been compiled with the support of www.citb.co.uk