Construction is picking up in 2025, but delays and rising costs remain likely, warn industry bodies, as skills shortages and material price hikes continue to challenge small and medium-sized builders.
The latest State of Trade survey, from the Federation of Master Builders (FMB) and the Chartered Institute of Building (CIOB), shows strong signs of recovery.
Workloads are up by 25 per cent and enquiries by 34 per cent – the strongest performance in workload, enquiries, and employment since 2023.
Despite the positive signs, the report warns of serious risks to delivery.
FMB chief executive, Brian Berry said: “Builders are finding it harder than ever to recruit skilled workers and rising prices for materials and wages are putting pressure on businesses.
“These challenges are slowing down delivery and making it harder for firms to take on new work.”
The skills gap continues to impact performance across the board.
Sixty-one per cent of firms report being affected by skills shortages, leading to delays for 49 per cent and cancellations for 23 per cent.
Carpenters, roofers, and plumbers are the hardest trades to recruit.
Planning delays are also an issue, with 38 per cent of firms citing the system as a key barrier.
Costs are another major concern.
Seventy-five per cent of builders have seen material prices rise, 67 per cent have faced higher wages, and 61 per cent have increased their own prices.
CIOB president, Paul Gandy highlighted the wider industry impact: “The issue of skills shortages is one the industry knows all too well, and it continues to create real challenges – for those doing the building, and for the public who face delays and rising costs as a result.”
Although 51 per cent of firms are optimistic about the second half of 2025, both organisations are urging government to tackle long-term issues – especially training, apprenticeships, and planning reform – to ensure the recovery is sustained.
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