According to the latest H2 2025 State of Trade Survey from the Federation of Master Builders (FMB), SME builders saw another period of positive growth in the second half of 2025, with workloads and enquiries remaining in the black. But momentum has slowed compared with earlier in the year, as rising costs, skills shortages and wider economic uncertainty continue to weigh on firms.
The latest State of Trade Survey, covering July to December 2025 (H2), shows that workloads remain strong, even as enquiries soften. Nearly half of firms report job delays linked to a lack of skilled tradespeople, and concerns around costs and recent policy changes are shaping expectations for the year ahead.
Commissioned by the Federation of Master Builders (FMB) and the Chartered Institute of Building (CIOB), the survey captures the real‑world experience of SME construction firms across the UK. This edition is based on 493 responses from FMB members, CIOB companies and businesses outside both organisations.
Growth has slowed compared with H1, but demand and hiring remain positive, showing that SME builders are still busy despite wider uncertainty.
Workloads remain strong across all nations, though enquiry levels have eased most in Wales and Northern Ireland when compared with H1, showing that confidence is recovering unevenly across the UK.
Shortages in both traditional trades and emerging specialist skills continue to hold back firms as building standards and technical requirements evolve.
Skills shortages are now materially constraining growth and delivery, making it harder for small builders to keep projects on schedule and take on new work.
Builders remain cautiously optimistic, but policy changes and rising overheads are dampening confidence as firms head into 2026.
In order to download the full report, click here.