The latest State of the Roofing Industry survey report, from NFRC and Glenigan, indicates that direct employment levels plateaued in the second quarter of 2023 among roofing contractors, with use of sub-contracted labour only rising very slightly.

As many firms reported an increase in their employee numbers, as reported a fall. Use of sub-contracted labour also changed very little compared to the first quarter of the year. This varied by sector: some saw an increase in staffing, particularly in the public non-residential RM&I sector, whilst the opposite was seen in the commercial and public non-residential new build sectors.

Firms also reported increased difficulty in finding workers with the necessary skillset. 46 per cent of firms experienced greater difficulty recruiting suitable labour during the second quarter compared to the previous quarter, against only six per cent seeing an improvement in recruitment conditions.

Roof slaters and tilers were in shortest supply (32 per cent reporting a shortage), with 26 per cent saying the same with regards to built-up felt roofers. 15 per cent said they had struggled to recruit general labourers.

Despite this, firms’ labour costs continued to increase, perhaps suggesting that firms are increasing pay for existing staff and/or sub-contractors.

Additional findings

Concerns in some sectors about near-term pipelines of work reflected an apparent slight fall in enquiry rates for UK roofing contractors in the second quarter of 2023. 22 per cent reported increased enquiries, against 29 per cent seeing a decline.

However, workloads continued to grow: 38 per cent of firms reported an increase in workloads versus 20 per cent reporting a decline.

Enquiry levels varied by sector, with residential new build work notably seeing a decline. Commercial repair, maintenance and improvement work stood out as the strongest sector in terms of the future pipeline.

Material price inflation persisted: whilst its rate has eased significantly, 45 per cent of firms still saw overall increases in the prices they paid, versus only 8 per cent reporting paying less. 

Late payment also continued to blight roofing contractors. Whilst 58 per cent of firms had standard payment terms of 30 days or less, only 33 per cent reported that they were usually paid within that timescale. 76 per cent of firms also reported being subject to cash retentions—this was most prevalent among firms which undertook new residential work (90 per cent). The average level of retention held on projects across all sectors was 4.3 per cent.

Expectations were mixed regarding pipelines of work. Despite firms feeling positive in the near term, foreseeing increased workloads in Q3 of this year, more firms expect their workloads to fall over the next twelve months than expect an increase.

The full report is now available.

James Talman, NFRC CEO, said:

‘Ultimately, the results of the survey reflect current uncertainties around pipelines of work in specific sectors, and the number of opportunities that do materialise will reflect government priorities in the coming months. We will continue to advocate for the needs of roofing and cladding contractors to government, and welcome Members’ input on our advocacy priorities. NFRC will also, as ever, offer practical support to Members facing challenges, from HR and tax helplines to technical guidance to bespoke recruitment support.’

Allan Wilen, Glenigan’s Economic Director, commented:

‘The latest survey reveals that while cost pressures and materials issues are beginning to stabilise, concerns over future workload are on the rise. The survey indicates that roofing industry workload will continue to rise during the second quarter with further growth anticipated near term. However, alongside a softening in new enquiries, roofing contractors are becoming more cautious about their workload over the next twelve months.’