Nine in 10 (87%) tradespeople are being forced to delay projects due to the ongoing supplies shortage, a new report reveals.

The study by small business insurance provider Simply Business unveils the impact of the supplies shortage, with over a quarter (27%) of tradespeople saying they’ve had no choice but to delay projects by a minimum of four to eight weeks. 

Plumbers and gas fitters were among the sectors surveyed by Simply Business, which also included tilers, builders, electricians, and KBB fitters.

The supplies shortage, caused by a damaging combination of unprecedented demand, tighter restrictions on imports after Brexit, and rising costs of materials, has left tradespeople across the country facing a staggering £3.5bn loss. Costs are being passed down to the tradespeople and then ultimately the consumer. 

Nearly one in five (16%) had had to delay projects by eight to 12 weeks, and a further one in six (13%) have had to delay projects by three months or more.

The report showed that tradespeople have lost an average of £5598 each as a result of rising material costs and a drop in earnings from needing to turn down work. One in five have lost over £10,000 each. 

Overall, 79% of the UK’s 801,000 self-employed tradespeople are affected by the shortages, amounting to a £3.5 billion loss of earnings. 

Gavin McClafferty, a joiner from Stroud Gloucestershire commented: “The supply shortage has forced me to effectively shelve my business and I’m looking at turning to freelancing as a result. I don’t expect the economy to recover anytime soon from this shortage so it’s time for a career change.” 

As the UK recovers from Covid-19, 34% of tradespeople believe a post-pandemic surge in demand has been the top factor in driving the current material shortage. 

A further third say the impact of Brexit on imports – with delayed border checks, tightened restrictions and trade barriers – is adding to the challenge. More than one in 10 (12%) feel Covid-19 travel restrictions are also playing a part.

Alan Thomas, UK CEO at Simply Business, comments: “The ongoing supplies shortage is having a significant impact on tradespeople in the UK at a crucial time in their recovery from the effects of the pandemic. With 79% forced to turn down work in the last three months alone due to shortages, the total loss to self-employed tradespeople is expected to exceed over £3.5 billion. 

“This is a huge blow to the livelihoods and dreams of so many tradespeople across the country, but the ongoing situation should concern us all – small businesses are crucial to the UK, contributing trillions of pounds each year in turnover. A £3.5 billion hole in the books of self-employed tradespeople damages the wider economy, and it’s vital that they’re given the support they need to navigate this period of uncertainty.

“Thankfully, we’ve seen remarkable resilience among the trades community throughout the pandemic, and it’s encouraging to see almost half of tradespeople remain optimistic about the future despite current challenges. Tradespeople will play a key role in the rebuilding of our economy and communities, and their resilience in the face of such challenges should give us all confidence that we’re on the right tracks to recovery.”

Read more about the impact of the supplies shortage on tradespeople here.

Methodology:

Data: Survey of 250 self-employed tradespeople from across the UK, conducted September 2021

How Simply Business calculate the £3.5 billion figure?

The money lost was calculated between the increased cost of materials and the cost of having to turn down work.

  • The weighted average of money lost due to increased costs, according to the SB survey, is £2,229.36
  • The weighted average of money lost due to turning down work, according to the SB survey, is £3,368.66
  • The weighted average of total money lost is £5,598.02
  • The percentage of tradespeople affected by increased costs, according to the SB survey, is 86%
  • The percentage of tradespeople who had to turn down work, according to the SB survey, is 71%
  • The average percentage of tradespeople affected by both is 79%
  • There are ~801,000 tradespeople in the UK, according to ONS
  • The number of tradespeople affected by both is ~628,785
  • Therefore the total money lost by UK tradespeople due to supply shortages is ~£3,519,952,538.02
weighted average money lost £5,598.02
number of UK tradespeople 801,000
tradespeople affected 628,785
Total Money Lost £3,519,952,538.02

Industries surveyed include:
Builders
Gardening/landscapers
Carpenters
Painters and decorators
Handymen/women
Bathroom, bedroom and kitchen fitters
Joiners
Plumber
Roofer
Gas Fitter
Electrician
Glaziers
Plasterer
Bricklayer
Groundwork
Tiler
Window cleaner