The NFRC have released their latest state of the roofing industry report for Q4 2024, with roofing professionals answering a detailed survey about their work load and optimism moving forwards.

Since Q3, optimism in the sector has dropped slightly, although workload and enquiries have continued to increase, albeit at a lower level than the previous quarter. Q4 suffered from the same negative effects as usual in the winter months, with bad weather and fewer daylight hours seeing a fall in hours on site. The effects of the Autumn budget were also a factor for Q4 however, with the chancellor unveiling a series of tax rises, modifications to fiscal rules as well as withdrawing funding from some construction projects. 

Q4 also brought with it the implementation of the Building Safety Act 2022, after the close of the transitional period. NFRC CEO James Talman writes: 

“This seemed like the ideal opportunity to understand how our members are responding to the introduction of the Act. It was pleasing to see a significant proportion of members telling us that they are clear about their responsibilities, but there are still a number for whom responsibilities could be clearer, and who would value more support to help in this area.

Uncertainties around the Building Safety Act and the responsibilities it brings are not unique to the roofing sector. In fact, in recent months, there have been several articles from elsewhere in the built environment sector expressing concern about potential delays to construction starts, many of which have been caused by a backlog in approvals that are sitting with the Building Safety Regulator. Due to the emphasis in the Act to special measures on Higher Risk Buildings (HRBs), there is a misnomer that a key part of this legislation doesn’t affect other construction activity, whether for example a new factory or a domestic refurbishment. The act applies to all those involved in property commissioning, development and management. Responsible parties must be able to evidence organisational and individual competencies.” 

The report continues to pledge the NFRC’s commitment to supporting members through this period of vast regulatory change, and also highlights the government’s acceptance of all the recommendations from the Grenfell Phase 2 enquiry as another change members will need support through.

Key indicators 

Across the four key areas of workload, enquiries, direct employment and sub-contracted labour, indicators remain positive for the roofing industry, although less so than Q3. This will have been impacted by the seasonal variation which tends to be seen throughout the winter months, although the effects of the October budget will have undoubtedly played a role as well. 

14% of the respondents reported an increase in workload in the quarter, a reduction from 29% in Quarter 3. The level of new enquiries also witnessed a marginal decline this quarter, with a balance of 15% reporting an increase – a reduction from 18% in Quarter 3. 

The balance of both direct employment and sub-contracted  labour levels decreased during Quarter 4, with 8% reporting an increase in direct headcount and 0% in sub-contracted labour levels (compared to 17% and 14% in the previous quarter). 

Workload and Enquiries by sector 

Although at a slower rate, the roofing industry continued to report growth in workload in Q4. Those operating in the commercial new build sector reported the strongest growth compared with Q3 (48% vs 40% respectively), with a high proportion of respondents working on public non-residential new build projects also reporting an increase (42% vs. 37% respectively). 

However, these adjustments vary from sector to sector, for example those in RM&I sector has experienced a significant reduction in workload.

 Employment skills and shortages 

The skills shortage continues to remain an issue throughout Q4. Although levels of those reporting difficulties finding skilled workers has not increased, it remains at a similarly high level as the previous quarter, 43%. 

In Quarter 4, respondents report a decline in both the direct headcount and sub-contracted labour at their firms to 8% and 0% respectively. Slaters and tilers continue to lead the list of professions roofers are struggling to recruit, followed by general labourers and lead workers. Around two-fifths (44% and 43% respectively) report slaters and tilers as the main areas of skills shortages, with 36% reporting issues recruiting general labours and lead workers.

Costs, prices and material availability 

The proportion of roofing contractors reporting a balanced
increase in labour costs remained
stable in Q4. 

55% report higher materials costs during Q4, similar to levels seen near the beginning of the year. This is perhaps a reflection of several manufacturers announcing price increases towards the end of the year, which has also seen tender prices increase for a significant proportion of respondents, with 38% reporting that, on balance, their tender prices have increased in Q4, an increase from 30% in the previous quarter. 

The availability of materials remained much the same as Q3. Where respondents were encountering difficulties sourcing materials two-fifths report difficulty sourcing concrete roof tiles, and a quarter report issues sourcing slates.

Market expectations 

Market expectations are mixed for the first quarter of 2025. Overall, 39% of respondents anticipate that their workload will increase in the first quarter of 2025 compared to Quarter 4 2024, whilst a higher proportion of respondents expects workload levels to decrease. 

Thoughts about workload over the next 12 months paint a similar picture, with a difference of optimism depending on sector. Those involved in the RM&I sector for example have higher expectations for their workload than those in new build sectors. 

The public non-residential new build sector experienced the largest reduction compared to Quarter 3, which could perhaps be a result of the governments October budget and the withdrawal of funding for some construction projects. Workload in the commercial new build sector is anticipated to shrink marginally over the next 12 months: a balance of -2 per cent of respondents expect an increase in workload in this area.

The Building Safety Act (BSA)

Within the industry report Q4, NFRC also asked members about their understanding of their responsibilities under the Building Safety Act (BSA) 2022 and the support that members need to update their business practices in line with the Act. More than half (56%) of respondents reported they were extremely or somewhat clear on their responsibilities, although only 20% report that they were extremely clear. 

More support is required to assist roofing contractors in understanding and ensuring they are compliant with the act, and NFRC is working on a response to the findings of the survey. 

The full industry report can be found here: NFRC State of Roofing Industry Report–Q4 2024 Available Now.