Construction workloads in Wales fell broadly flat through the final three months of 2024, according to the latest Royal Institution of Chartered Surveyors (RICS) Construction Monitor, however surveyors in Wales are more optimistic on the outlook for the year ahead.
A net balance of 3% of surveyors in Wales reported a rise in overall construction activity; this is down from the 13% that was reported in the previous survey. Public housing continues to see the highest workloads balance, with a net balance of 16% reporting an increase. Infrastructure was the only other subsector to see a rise (a net balance of 3%). The net balances of the rest of the subsectors were all reported to have fallen; private housing (-3%), private industrial (-10%), private commercial (-10%) and other public works (-3%).
Surveyors in Wales remain optimistic about future workloads, with a net balance of 16% of respondents expecting an increase over the next year. Although this is the fourth consecutive quarter this balance has been in positive territory, expectations have moderated slightly, with the net balance down from the 26% seen in the Q3 survey.
Profit margins though are still expected to fall over the next 12-months. A net balance of -5% of surveyors in Wales anticipate that profit margins will decline. Although remaining in negative territory, this is the least negative this balance has been since 2020.
Welsh surveyors continue to report shortages in skilled workers. 65% report a shortage in quantity surveyors, up from 50% in Q3, and 50% note a shortfall in other construction professionals up from 39%, and 66% report a deficit in bricklayers, up from 59% in the third quarter of the year.
Survey respondent Anthony Davies of Davies Consult in Machynlleth commented: “A lack of land availability is blocking housing development. A shortage of skilled workers is driving up prices and delaying works.”
Neil Taylor of Hafod Housing Association in South Wales added: “The planning process continues to be challenging as well as maintaining quality standards on site. This is due to the lack of suitably qualified trades.”
Commenting on the UK picture, RICS Chief Economist, Simon Rubinsohn, commented: “Although the overall tone of the latest RICS Construction Monitor is a little subdued, the more positive assessment of the outlook foreshadowed, at least in part, some of announcement’s the Chancellor made in her recent speech.
“That said, respondents to the survey continue to highlight just how important it is to follow through on the plans to address some of the barriers presented by the current planning regime. Moreover, contributors also once again raise the issue of capacity when it comes to delivering on the ambitious goals of the government. Labour shortages continue identified as a meaningful obstacle to getting Britain building”.
