MRIB recommends that all clients review their Buildings sum insured and their indemnity periods for Business Interruption and / or Loss of Rent: in the light of two recent surveys highlighting serious shortages of both building materials and skilled labour.
The Federation of Master Builders (FMB) latest State of Trade Survey on 27th April 2015, found that half of all construction SMEs are finding it difficult to recruit bricklayers. 62% of firms are waiting for up to two months for new brick orders while almost one quarter are waiting for up to four months. An additional 16% are waiting for a staggering six to eight months. The brick manufacturers are working hard to reignite their kilns which were mothballed during the recession.
In terms of skills, the ever-growing lack of bricklayers is causing concern. Compared to this time one year ago, more than twice the firms are reporting difficulties recruiting these tradespeople. In the short term, many SME house builders may have to rely on migrant labour.
A survey published 23rd June 2015 by Zurich Insurance asked 200 mid-sized construction firms (turnover between £5m and £300m) to reveal the key challenges they face.
To find out more about these risks visit ‘What keeps your construction customers awake at night?’.
For more information, please do not hesitate to contact us:
Tel: 01494 455 655