Bostik Comment: Q3 2024
Political uncertainty in the build up to the Labour party’s Autumn budget, coupled with a sustained period of unsettled weather, had a negative effect on consumer confidence and merchant sales throughout the majority of Q3.
Data from the Federation of Master Builders’ ‘State of Trade’ survey showed a decline in workloads for the UK’s small builders, as well as a shortage of general labourers, roofers, painters and decorators.
While this paints an underwhelming picture, there were some positives, with inflation falling and house prices and mortgage approvals continuing to rise.
Reports of a skills shortage are unsurprising, and I believe the government’s decision to raise employers’ National Insurance contributions will add further challenges for companies already struggling with recruitment. In the construction sector, these additional employment costs could hinder growth, discourage hiring, and dampen investment enthusiasm.
The flipside to this is the importance of upskilling existing workforces. Builders’ merchants are a fundamental support system for construction projects, so their effectiveness directly impacts the industry’s overall productivity.
With construction companies facing tight deadlines and limited staff, merchants who provide high-quality customer support and technical advice become even more valuable. Upskilling ensures that staff can handle complex queries, provide accurate information on materials and their applications, and assist in troubleshooting — all of which make them essential partners to contractors.
This is backed by manufacturers such as Bostik that offer hands-on training and online resources for merchant staff. By educating industry workers on the correct use and installation of their products, manufacturers help reduce errors and improve efficiency.
In times like these, it’s important to remember that the UK construction industry has proven its resilience time and again, adapting to economic downturns, regulatory changes, and market shifts. The industry’s adaptability is a strength that will help it overcome current challenges, and there are numerous positive trends and developments such as digital transformation, sustainable practices, and advanced building methods that offer reason for optimism in the years to come.