The latest NFRC State of the UK Roofing Industry survey, covering the second quarter of 2024, has been released
It shows continued positive trends in terms of workloads and enquiries for roofing contractors’, as well as signs of reduced material cost pressures. However, it also highlights UK regions and areas of the industry where challenges remain.
The quarterly survey of National Federation of Roofing Contractors (NFRC) Members tracks key indicators such as workload, recruitment, material availability, costs and payment across all regions of the UK. It also looks at trends within both new build and repair, maintenance and improvement (RMI) across the public, commercial and residential sectors.
Work and enquiries continue a positive trend
The overall picture in terms of workload and new enquiries remains encouraging. The survey shows a total balance figure of 15 per cent of respondents reporting increased workloads (38 per cent reporting an increase minus the 23 per cent reporting a decline), which indicates that growth continues. This is down from the overall balance figure of 25 in Q1 but still offers positive news for the sector.
With the exception of new residential, all new build and RMI sectors have positive balance figures, with commercial new build performing the best (27 per cent net figure) followed by domestic RMI (22 per cent) and commercial RMI (21 per cent). Although the new build residential sector is still on balance reporting a decrease in work with a figure of -8, more respondents are seeing an increase in work compared with Q1 of the year – 25 per cent versus 17 per cent.
However, workloads were found to vary significantly across the UK, with the North-West and Midlands reporting the highest positive net figures of 20 per cent each, while Scotland and Wales had strongly negative figures of -43 and -34 respectively. Members operating UK wide had the highest proportion reporting an increase in workload with 56 per cent, and only 13 per cent saying they have seen a fall in work.
Similarly, with regard to new enquiries, the survey returned mixed results. Overall, there was a net increase in enquiries of 10 per cent and the South West and North West returned strongly positive balance figures of 37 per cent and 30 per cent. However, London & Southern Counties, Wales, and Yorkshire & North East all had negative net figures (-5, -67 and -37 per cent respectively).
Looking ahead, many Members are optimistic about future workloads. Overall, 48 per cent of respondents said they expect workloads to increase in the coming year, with only 15 per cent expecting a decline. Notably, many of those operating in the new build residential sector are expecting improved conditions in the next year, with a net figure of 31 per cent forecasting an increase in work.
Recruitment challenges remain
There has been little change in terms of the proportion of respondents who have found it difficult to recruit in Q2 2024. In both Q1 and Q2, 53 per cent reported that recruitment was more difficult than in the previous quarter. However, in Q2, a smaller proportion of respondents reported recruitment to be easier than in Q1 (3 per cent vs. 9 per cent easier, respectively). On balance, 50 per cent found it more difficult to recruit in Q2 compared with 44 per cent in Q1.
Material costs and availability improve
Continuing the trend from the previous quarter, the availability of materials improved again with a balance of 6 per cent reporting that sourcing materials was easier in the three months to the end of June.
While material cost pressures remain a significant issue, there are signs it is easing. A balance of 48 per cent of respondents reported higher prices in the second quarter, compared to 55 per cent in the first quarter, suggesting that price inflation is beginning to lessen.
Late payment persists
The late payment of accounts by customers has been a long-term issue for roofing contractors and the construction industry as a whole. The State of the UK Roofing Industry survey again highlights the scale of the issue. It found that 90 per cent of respondents have payment terms of 45 days or less with customers. However, just 71 per cent reported receiving payment within that timeframe. Furthermore, although it is only a small proportion (3 per cent) there are those in the sector that are having to wait more than 90 days for payment.
“The results provide promising news for our industry, continuing the generally positive trends we saw at the start the year. The key indicators suggest that the roofing sector, and the construction industry at large, is heading in the right direction. However, it is also clear that Members in some regions and areas of the industry are still facing challenges.
“We are currently settling into a new era of government in the UK and it remains to be seen how this will affect the work of our Members. The Government has set ambitious new targets for housebuilding and will introduce policies with the aim of achieving those targets. As these efforts take effect, future editions of this survey may show further signs of growth and optimism.”
James Talman, NFRC CEO
To read the full NFRC UK Roofing Industry Survey click here
For further information on the National Federation of Roofing Contractors (NFRC) click here
