The construction industry has come together to develop a mandatory licensing scheme for all UK construction companies to transform the sector into a high quality and professional industry, announces the Federation of Master Builders (FMB). A new Construction Licensing Task Force, supported by a range of leading industry bodies, will
The Immigration White Paper shows the Government isn’t listening to the business community as it sets out a post-Brexit immigration system that would devastate the construction industry, according to the Federation of Master Builders (FMB). Commenting on the Immigration White Paper, published this afternoon, Brian Berry, Chief Executive of the
Councillors must start working with local builders and developers to make better use of the existing town centre buildings, advised the Federation of Master Builders (FMB). Following the recent announcement of Budget 2018, FMB CEO Brian Berry was speaking on the development of space above shops. “It is important that
The Federation of Master Builders (FMB) have stated that the Chancellor of the exchequer is right to make the Apprenticeship Levy more flexible, in a bid to ensure it works for strategic industries such as the construction sector. That being said, they aren’t convinced his reforms have gone far enough.
Small house builders predict that skills shortages in the building industry will hamper housing delivery and will eventually overtake access to finance as a bigger barrier to building new homes, according to new research by the Federation of Master Builders (FMB). Key results from the FMB’s House Builders’ Survey 2018,
The 28% fall in construction apprenticeship starts between August 2017 and March 2018 compared with the same period the previous academic year suggests the Government needs to look again at the way the Apprenticeship Levy is working, according to the Federation of Master Builders (FMB). Commenting on statistics published today
According to a new research by the Federation of Master Builders (FMB), over half (57%) of Brits wrongly assume that millennials are useless when it comes to carrying out practical jobs around the home. “Society is wrong to assume that the technical know-how of your typical millennial begins and ends
More than half of small building firms say that rising material prices are squeezing their margins and the same percentage have had to pass these price increases onto consumers, according to the latest research by the Federation of Master Builders (FMB). Small and medium-sized (SME) building firms were asked which
We need a serious delivery plan in place for post-Brexit skills and immigration policy, the Federation of Master Builders (FMB) has said in response to the Migration Advisory Committee’s Interim update. Commenting on the Migration Advisory Committee’s Interim update, Brian Berry Chief Executive of the FMB, said: “The Migration Advisory
The Federation of Master Builders (FMB) announced that a number of construction sites across the UK have ground to a close because of heavy snow. “Heavy snow showers have led to many construction sites across the UK grinding to a halt. Some construction bosses have told their staff to take
The construction industry has come together to develop a mandatory licensing scheme for all UK construction companies to transform the sector into a high quality and professional industry, announces the Federation of Master Builders (FMB). A new Construction Licensing Task Force, supported by a range of leading industry bodies, will lead the development of the licensing scheme. Key statistics relating to licensing and the need for such a scheme are as follows: • One third (32%) of homeowners are put off doing major home improvement works requiring a builder because they fear hiring a dodgy builder; • This means that the UK economy could be missing out on £10 billion of construction activity per year because of anxiety over rogue building firms; • More than three-quarters (77%) of small and medium-sized (SME) construction firms support the introduction of licensing to professionalise the industry, protect consumers and side-line unprofessional and incompetent building firms; • 78% of consumers also want to see a licensing scheme for construction introduced; • Nearly 90% of home owners believe that the Government should criminalise rogue and incompetent builders; • Over half of people (55%) who commission home improvement work have had a negative experience with their builder. The decision to establish a Construction Licensing Task Force follows a recommendation in an independent research report by Pye Tait published last year entitled ‘Licence to build: A pathway to licensing UK construction’, which details the benefits of introducing a licensing scheme for the whole construction industry and puts forward a proposal for how it could work. The Task Force will be chaired by Liz Peace CBE, former CEO of the British Property Federation, and the following organisations will sit on it: • Association of Consultancy and Engineering • British Property Federation • Chartered Institute of Building • Construction Products Association • Electrical Contractors Association • Federation of Master Builders • Glass and Glazing Federation / FENSA • Local Authority Building Control • Royal Institution of Chartered Surveyors • TrustMark • Which? Trusted Traders Liz Peace CBE, Chair of the Construction Licensing Task Force, said: “Mandatory licensing has the potential to transform our industry into a world-leading sector. Licensing will help drive up standards and help address the issue of quality and professionalism, which is some areas, is falling short. At the heart of what we’re trying to do is increase protection for the ordinary person who engages with the construction sector. Indeed, according to research by the FMB, one third of homeowners are so worried about having a bad experience with their builder, they are putting off commissioning construction work altogether. This could be costing the economy as much as £10 billion per year. Enough is enough and the industry itself recognises that.” Peace continued: “Licensing has support in principle from more than 30 construction organisations and consumer groups. The Task Force will be supported by major players and in an industry that is often criticised for being too fractured and disparate, I am heartened by the fact that the sector is coming together to lead the industry in a new direction. I’m also pleased that senior civil servants from BEIS and MHCLG will sit on the Task Force as observers as Government engagement right from the outset is crucial to the successful development of the scheme.” Brian Berry, Chief Executive of the FMB, said: “The vast majority of builders and homeowners want to see the construction industry professionalised. It’s unacceptable that more than half of consumers have had a negative experience with their builder. However, we shouldn’t be surprised by this given that in the UK, it is perfectly legal for anyone to set up a building firm and start selling their services without any prior experience or qualifications. This cannot be right given the nature of the work and the potential health and safety risks when something goes wrong. In countries like Australia and Germany, building firms require a licence and we want to develop a scheme that regulates our industry in a similar manner. I am delighted to be part of the Construction Licensing Task Force and will ensure that any such scheme works for small building firms.”
The Immigration White Paper shows the Government isn’t listening to the business community as it sets out a post-Brexit immigration system that would devastate the construction industry, according to the Federation of Master Builders (FMB). Commenting on the Immigration White Paper, published this afternoon, Brian Berry, Chief Executive of the FMB, said: “The Government seems hell-bent on ignoring the business community when it comes to its immigration policy, as demonstrated by this disastrous White Paper. Despite more than two years of constructive engagement, what has been proposed by Ministers takes on none of our feedback. If the Government wants to jeopardise the UK economy for the sake of meeting an arbitrary immigration target, it’s going the right way about it.” Berry continued: “What’s particularly worrying is the Government’s obsession with salary thresholds for migrant workers entering the UK. The figure of £30,000 was floated in the Migration Advisory Committee report and was met by fierce opposition from almost all sectors. It makes no sense to draw meaningless lines in the sand when we should base our immigration policy on what will make our economy strong and productive. The White Paper also states categorically that it will make no allowances for so-called low skilled workers. This is wrong on two levels – firstly, the definition of low skilled will cover most construction tradespeople and secondly, genuinely low skilled workers, such as labourers, are essential to the safe and smooth running of any construction site.” Berry concluded: “12-month work visas for occupations in short supply during the transition period simply won’t cut it. Small and medium-sized construction firms, which make up 99 percent of the industry, do not advertise for roles internationally. Also, from a migrant worker’s perspective, why go to the UK for just 12 months when they can settle in other countries for much longer and put down roots if they wish. If the 12-month work visa idea was supposed to be an olive branch to the business community, it leaves much to be desired. The Government describes the construction and house building sectors as strategic and central to delivering its own aims. However, the plans set out today would make it impossible to meet the Government’s house building targets and the world-class infrastructure projects we have in the pipeline will be nothing but a pipedream.”
Councillors must start working with local builders and developers to make better use of the existing town centre buildings, advised the Federation of Master Builders (FMB). Following the recent announcement of Budget 2018, FMB CEO Brian Berry was speaking on the development of space above shops. “It is important that the Chancellor has recognised the importance of investing in our high streets. He has announced a £675 million Future High Streets Fund to allow councils to rejuvenate town centres. It is estimated that as many as 300,000 to 400,000 new homes alone could be created by making use of empty spaces above shops on our high streets. This is space just waiting to be turned into residential accommodation. There is a pressing need to re-invent many of our town centres in light of changing patterns of retail and leisure. The Government should be applauded for its ambition to safeguard the life of our high streets,” said Brian Berry. “A recent report titled Homes on our High Streets from the FMB puts councils at the heart of the solution and suggests some practical ways for them to facilitate the development of wasted space above shops. Retail will always be an important element of vibrant high streets, but there is plenty we can do on a small scale to help convert unused and under-used space in to attractive residential units. This will both boost the supply of new homes and help breathe new life back into our high streets. What we must avoid is perfectly good space lying empty and achieving nothing in terms of boosting the local economy or housing individuals,” he added. The FMB CEO has also welcomed the Chancellor’s announcement of £1 billion to guarantee capacity to support lending to the SME housebuilding sector. “Many small-scale house builders continue to experience real difficulty in accessing the finance they need to build homes, and it is often the smallest scale builders that experience the greatest problems. This new funding will help to speed up the delivery of homes and lead to a more diverse and resilient housing supply,” Berry concluded.
The Federation of Master Builders (FMB) have stated that the Chancellor of the exchequer is right to make the Apprenticeship Levy more flexible, in a bid to ensure it works for strategic industries such as the construction sector. That being said, they aren’t convinced his reforms have gone far enough. “The Chancellor has, in part, listened to the concerns of businesses by making the Apprenticeship Levy more flexible. However, he needs to go much further,” said Brian Berry, Chief Executive of the FMB, and former Head of Uk Public Policy for the Royal Institution of Chartered Surveyors (RICS) as a response to the Chancellor’s speech at the Conservative Party Conference. As it stands 10% of Levy vouchers can currently be passed down through the supply chain from larger firms to smaller ones, but now Chancellor Philip Hammond, has stated that figure should instead be 25%. “This is important, in construction its the small firms that do the bulk of the training while the large firms don’t tend to directly employ or train tradespeople. Since the Apprenticeship Levy was introduced last year, apprenticeships stats have fallen in the construction trades by more than 10%,” added Brian Berry. Given that the construction industry is already suffering from an acute shortage of skills, Brian Berry called this, “very worrying indeed.” He went on to say: “If the Chancellor is serious about ensuing the Levy has the desired effect, and increases meaningful training across all sectors, it should go further and make 100% of the vouchers transferable from large to small companies.” The FMB is non-profit making and independent, it works as a lobbying for members’ interests at both a local and national level. It stands as a source of knowledge, support and advice for members, while offering a range of modern and innovative building services to help members succeed and achieve. Committed to continuously keeping quality high and forever raising the bar on standards, they even offer a free service to consumers titled: “Find a builder.” Operating by constantly lobbying the Government to boost output and raise standards of both safety and professionalism in conduct at all levels, the FMB strive for a fair, safe and well structured construction sector at all times. The FMB is the largest trade association in the United Kingdom construction industry, and represents thousand of firms across England, Wales, Scotland and Northern Ireland. Established in 1941, the aim of the FMB is to protect the interest of both medium and small sized construction firms.
Small house builders predict that skills shortages in the building industry will hamper housing delivery and will eventually overtake access to finance as a bigger barrier to building new homes, according to new research by the Federation of Master Builders (FMB). Key results from the FMB’s House Builders’ Survey 2018, the only annual assessment of small and medium sized (SME) house builders in England, include: • The percentage of SME house builders saying that a shortage of skilled workers is a major barrier to their ability to build more new homes rose to 44% (up from 42% in 2017); • A lack of available and viable land tops the list as the most commonly cited barrier (59%) to increasing housing delivery and almost two-thirds of SME house builders (62%) believe that the number of opportunities for small site development are actually decreasing (up from 54% in 2017); • Nearly half of small house builders (46%) say access to finance is a major barrier to their ability to build more new homes; • More than half (51%) of SME house builders view the planning system as a major constraint on their ability to grow and ‘inadequate resourcing of planning departments’ was again rated as the most significant cause of delay in the planning application process for the third year in a row; • When asked to look ahead over the next three years, more firms cited skills shortages as a likely barrier to growth than access to finance. Brian Berry, Chief Executive of the FMB, said: “Nearly half of builders believe the skills shortage is a major barrier to their ability to build new homes. The construction sector is heavily reliant on EU workers with just under one in ten workers in the sector born in the EU. Brexit, coupled with the end of free movement, threatens to further intensify the skills shortages we already face. Given that the UK will leave the EU in less than six months, house builders are understandably concerned that skills shortages could worsen and choke housing delivery. In order to combat this skills crisis, the construction industry needs to encourage more entrants into the industry and develop higher quality qualifications. It is critical therefore that the Government doesn’t pull the rug out from under the sector by introducing an inflexible and unresponsive immigration system.” Berry continued: “Our research also shows that the Government must continue to address the issue of access to finance for SME house builders. Although concerns over access to finance have eased slightly in recent years, in part thanks to the Government’s funding schemes such as the Home Building Fund, there is more that can be done. Our research suggests that it is the low percentages of project cost that builders are able to borrow that remain the greatest financial barrier to increasing their levels of house building. This latest research suggests that if firms were able to borrow 80 per cent, rather than the current 60 to 65 per cent of project cost, SME builders would be able to bring forward on average 40 per cent more new homes. Given the ambitious house building targets the Government is working towards, we cannot afford to ignore such a chance to significantly increase housing delivery.” Berry concluded: “A lack of available and viable small sites tops the list of frustrations for SME house builders for the fourth year in a row. Worse still, nearly two-thirds of these small builders believe that the number of opportunities for small site development are decreasing. However, the recent reforms to the National Planning Policy Framework, which specify that 10 per cent of a local authority’s housing delivery must be on sites no larger than one hectare, will help to address this problem. This will help to speed up the delivery of homes and lead to a more diverse and resilient housing supply.”
The 28% fall in construction apprenticeship starts between August 2017 and March 2018 compared with the same period the previous academic year suggests the Government needs to look again at the way the Apprenticeship Levy is working, according to the Federation of Master Builders (FMB). Commenting on statistics published today by the Department for Education (DfE), Brian Berry, Chief Executive of the FMB, said: “The Government’s own statistics show a 28% per cent plunge in apprenticeship starts over the current academic year so far. The Apprenticeship Levy was introduced in April 2017 to boost apprenticeship training across all business sectors but so far it seems to be having the opposite effect. Some reforms are obvious and need to be looked at more urgently now. The Government should allow large companies to pass more of their Levy vouchers down through their supply chains if the company itself is not in a position to train apprentices. Currently large firms are only permitted to pass 10% of their Levy funds down to their sub-contractors and others in their supply chain. There needs to be much greater flexibility than this. In the construction sector, larger firms often do not directly employ on-site tradespeople or directly train apprentices and so there is a real danger this industry and others will continue to fail to take advantage of the Apprenticeship Levy if we can’t change this.” Berry concluded: “These figures have been published shortly after the FMB’s latest research which shows that small construction firms are experiencing record highs in terms of skills shortages. In the long term, the only way we will be able to address the chronic skills crisis is by recruiting and training more new entrants. We know that 58% of builders are struggling to hire bricklayers and 55% are having difficulties finding carpenters and joiners. We need to iron out the flaws in the Apprenticeship Levy and reverse this decline in apprenticeships to give us the best chance of tackling these skills shortages.”
According to a new research by the Federation of Master Builders (FMB), over half (57%) of Brits wrongly assume that millennials are useless when it comes to carrying out practical jobs around the home. “Society is wrong to assume that the technical know-how of your typical millennial begins and ends with their smartphone. Well over half of Brits think that those aged 18-34 fall short when it comes to carrying out hands-on tasks around the home. There’s a popular misconception that most young people rely on their parents to complete jobs around the house for them – either through a lack of interest or a lack of ability, or both. However, our research shows that millennials are handier than many give them credit for. Two thirds of young people have hung picture or photo frames on the wall and nearly as many have put together flat-pack furniture and painted something. It’s particularly impressive that half of all young people have been proactive enough to watch a DIY ‘how to’ online video rather than waiting for someone they know the show them or complete the task on their behalf,” said Brian Berry, Chief Executive of the FMB. The research shows that the top ten jobs completed by 18-34 year olds are: 70% have defrosted a freezer, 66% have hung picture or photo frames on a wall, 63% have put together flat-pack furniture, 58% have painted a wall or a piece of furniture, 57% have hung curtains, 49% have watched a DIY ‘how to’ video, 48% have sewn a button, 44% have bled a radiator, 43% have changed a fuse in a plug and 36% have put up a shelf. “Although we applaud young people for getting stuck in, it’s important that all generations know their limits when it comes to DIY and home improvements. It’s one thing bleeding a radiator and quite another attempting to knock down a wall or removing a structural beam. Our advice is to refrain from undertaking tasks that are better performed by a professional builder. If homeowners are looking to hire a builder, and aren’t able to extract a reliable recommendation from a family member or friend, they should use the FMB’s ‘Find a Builder’ service. All new members of the FMB are vetted and independently inspected before joining and so consumers can rest assured that they’ll be working with a professional and quality builder,” Berry concluded.
More than half of small building firms say that rising material prices are squeezing their margins and the same percentage have had to pass these price increases onto consumers, according to the latest research by the Federation of Master Builders (FMB). Small and medium-sized (SME) building firms were asked which materials are in shortest supply and have the longest wait times. The average results were as follows (in order of longest to shortest wait times): 1) Bricks were in shortest supply with the longest reported wait time being more than one year; 2) Roof tiles were second with the longest reported wait time being up to six months; 3) Insulation was third with the longest reported wait time being up to four months; 4) Slate was fourth with the longest reported wait time being up to six months; 5) Windows were fifth with the longest reported wait time being more than one year; 6) Blocks were sixth with the longest reported wait time being up to four months; 7) Porcelain products were seventh with the longest reported wait time being more than one year; 8) Plasterboard was eighth with the longest reported wait time being up to two months; 9) Timber was ninth with the longest reported wait time being up to two months; 10) Boilers were tenth, with the longest reported wait time being more than one year. SME building firms were also asked by what percentage different materials have increased over the past 12 months. On average, the following rises were reported: Insulation increased by 16%; Bricks increased by 9%; Timber increased by 8%; Roof tiles increased by 8%; Slate increased by 8%; Windows increased by 7%; Blocks increased by 7%; Plasterboard increased by 7%; Boilers increased by 7%; Porcelain products increased by 6%. The impact of these material price increases includes: More than half of construction SMEs (56%) have had their margins squeezed, this has gone up from one third (32%) reporting this in July 2017; Half of firms (49%) have been forced to pass material price increases onto their clients, making building projects more expensive for consumers, this has gone up from less than one quarter (22%) reporting this in July 2017; A third of firms (30%) have recommended that clients use alternative materials or products to those originally specified, this has gone up from one in ten reporting this in July 2017; Nearly one fifth (17%) of builders report making losses on their building projects due to material price increases, this has gone up from one in ten reporting this in July 2017. Brian Berry, Chief Executive of the FMB, said: “Material prices have rocketed over the past year. The reason for this could include the impact of the depreciation of sterling following the EU referendum still feeding through. High demand due to buoyant international markets could also be contributing to price increases. What’s particularly worrying is that when prices have increased mid-project, almost one fifth of builders have absorbed the increase and therefore made a loss. Also, if material price increases weren’t enough of a headache for building firms, they are also experiencing material shortages with wait times ticking up across a range of materials and products. Worst case scenarios include firms waiting for more than one year for a new order of bricks.” Berry continued: “The rise in material prices is not just a problem for the country’s construction firms – it is also a problem for home owners. Half of firms have been forced to pass these price increases onto their clients, meaning building projects are becoming more and more expensive. This problem has worsened recently with more than twice as many firms passing material prices on to their clients now compared with nine months ago. What’s more, home owners should be prepared to have to use alternative materials or products to their first choice. One third of firms have recommended that their clients should use alternative materials or products to those originally specified. Now more than ever, it’s important that builders and their clients keep the lines of communication open in order to stay within time and within budget. Specified products or materials may need to be swapped for alternatives or clients will need to accept the additional cost.” Berry concluded: “We are calling on builders merchants to give their customers as much advance warning of forthcoming material price increases or wait times as possible so that firms can warn their customers and plan ahead. We are also advising builders to price jobs and draft contracts with these material price rises in mind. The FMB’s latest State of Trade Survey shows that almost ninety per cent of building firms are expecting further rises over the next sixth months. This makes quoting for jobs difficult but if builders flag the issue to their client from the outset, and include a note in the contract that prices may be subject to increases, they shouldn’t be left short. What we don’t want is for the number of building firms making losses on projects to increase as this could result in firms going to the wall. A large number of collapsing construction companies will have a terrible knock-on effect in the wider economy.”
We need a serious delivery plan in place for post-Brexit skills and immigration policy, the Federation of Master Builders (FMB) has said in response to the Migration Advisory Committee’s Interim update. Commenting on the Migration Advisory Committee’s Interim update, Brian Berry Chief Executive of the FMB, said: “The Migration Advisory Committee’s Interim update has set out the concerns and evidence which construction and a wide range of industries have presented. However, we now need a serious delivery plan in place to make sure it happens. The skills requirements of key sectors such as construction need to be taken into account as the Government begins to shape these policies. The construction industry should be viewed by the Government as a key strategic industry, as without it Ministers will be unable to meet their ambitious plans for the delivery of new homes and infrastructure projects. Currently over 8% of construction workers are from the EU, and in London this rises to a third. Recent FMB research shows that skills shortages across construction are already at a record high, and this will only worsen if poorly thought-through policies lead us off a cliff edge in terms of our access to skilled EU workers.” Berry continued: “The recent news that the Government has offered permanent residency for EU nationals arriving during the post-Brexit transition period is a positive step for construction firms across the UK. However, any future migration visa system should be based on key occupations that are in short supply rather than on arbitrary thresholds based on skill levels or income. What’s more, the Government should take into account that the vast majority of the construction workforce are employed by small and micro firms. Asking these firms to sponsor foreign workers is not realistic and will simply not work for this industry. We are still waiting to see what the post-Brexit immigration system will entail, however we need a serious plan in place to ensure we have the right skills and migration policies in place for a post-Brexit Britain.”
The Federation of Master Builders (FMB) announced that a number of construction sites across the UK have ground to a close because of heavy snow. “Heavy snow showers have led to many construction sites across the UK grinding to a halt. Some construction bosses have told their staff to take the rest of the week off and not return to work until Monday. But it’s not just the snow that’s playing havoc with construction projects – some firms are reporting that the freezing temperatures mean it’s too cold to lay bricks. The overall impact of bad weather on construction growth remains to be seen but this situation is concerning given that the FMB’s latest research shows that growth among construction SMEs slowed in the final three months of 2017. We hope that the cold weather we have seen this week is just a blip and that all workers will be able to get back on site in coming days,” said Sarah McMonagle, Director of External Affairs at the FMB. The Federation of Master Builders is the largest trade association in the UK dedicated to the construction industry and which represents thousands of firms in England, Scotland, Wales, and Northern Ireland. It was established back in 1941 aiming to protect the interests of small and medium sized (SME) construction firms. The association is independent and non-profit making, lobbying for members’ interests at both the national and local level. The FMB is a source of knowledge, professional advice and support for its members, providing a range of modern and relevant business building services to help them succeed. Moreover, it is committed to raising quality in the construction industry and offers a free service to consumers called ‘Find a Builder’. To find out more information about the association, please visit their website at: www.fmb.org.uk.
