More than 150 NFRC members took part in the refreshed survey, which shows that only 36% of contractors reported increased workloads, down from 48% at the end of 2024. New enquiries also dipped slightly, with 33% reporting an increase compared to 36% previously.

Despite these challenges, commercial new build contractors remain optimistic, with 49% expecting workload growth over the next 12 months. The Midlands and Scotland are leading regional optimism, where 47% and 60% of contractors, respectively, foresee increases in work over the next year.

Skills shortages continue to constrain capacity. Nearly half (47%) of respondents found recruitment harder than the same time last year. The most challenging roles to fill remain tilers, slaters and built-up felt roofers.

Cost pressures remain acute. 86% of firms reported increased materials costs, and 79% noted rising labour costs. These increases are not always reflected in tender pricing, with only 54% seeing higher tender prices, down from 68% previously. 

On payments, the picture has improved slightly, with 66% of firms reporting being paid on time, up from 55% in Q4 of 2024. However, 32% still reported experiencing issues with late payment. Importantly, 80% of contractors say retentions impact their businesses, reinforcing NFRC’s call for reform ahead of a forthcoming government consultation on payment. 

Despite the challenging environment, NFRC Members’ confidence remains strong: 90% of respondents said they are proud to be NFRC Members and 41% forecast increases in work over the next 12 months. However, support from the government appears to be lacking, with only 4% saying they strongly agree or tend to agree that the UK Government provides the support their business needs. This uncertainty will be slightly alleviated after the recent spending review, which saw a big boost to investment in housing and key infrastructure.

However, with uncertainty surrounding potential tax increases in Autumn’s budget, many businesses will still be holding their breath and struggling to make long-term plans.  

Top challenges identified by members include: 

• Cost of employment (77%)
• Recruitment difficulties (60%)
• Political uncertainty (37%) 

NFRC director of membership Richard Miller said: “While the industry faces real headwinds, from economic pressures to skills shortages, there’s clear pride in the sector and optimism for the future, particularly in commercial work. This report provides essential insights to help us advocate for members at the highest levels.”