Results for the TRA State of the Industry Survey 2024 is now available

The results are in for the TRA’s second State of the Industry survey, with members sharing their views about the current status of the industry and their confidence about the year ahead.

The survey has revealed that concerns remain within the industry about the economy and the housebuilding industry, however, members are looking to invest in their businesses to prepare for better times.

Business confidence for the next 12 months: mixed signals

The majority of members are apprehensive about the upcoming 12 months. Among them, 45% are only “somewhat confident,” while 10% are “not confident at all” about their business outlook. On the other hand, 39% feel “confident,” and 6% are “very confident” about the next year.

About half of the members are uncertain about the UK’s economic prospects, with very few holding a positive or very positive outlook. The survey revealed that 38% have a negative view of the UK economy.

When asked about housebuilding activity over the next 12 months, responses indicate a glimmer of hope, with many thinking that housebuilding may increase or at least stabilise.

Specifically, 39% of businesses expect an increase, and 55% believe it will remain the same.

Response to challenges

Some members are responding to challenges by focusing on expanding on existing business relationships, while a smaller percentage are exploring new businesses.

Despite some nervousness about the upcoming year, members are reporting that they are likely to invest in their businesses to prepare for better times.

Last year, 42% of respondents were unlikely to invest in new technology and ways of working, but this year that figure has dropped to just 10%. 16% of businesses are very likely to invest and 42% are likely to invest.

Regarding the impact of a potential government change on the housing market, 55% believed it would improve the market and 39% thought the new Labour government will make no difference,

Training and Recruitment

In another sign that members are looking ahead to better times, a majority (58%) plan to increase their staff over the next 12 months.

No respondents expect a significant decrease in headcount. Comparing staff recruitment to 12 months ago, 19% of businesses find it easier, 32% find it harder, and 48% find it about the same.

Confidence in staffing levels has grown significantly, with 94% of respondents confident they can fulfil their orders with current staff, compared to 64% in 2023.

Survey results show that 55% of respondents feel likely to take on new apprentices in the next five years.

Net Zero

When it came to the question of having a net zero/decarbonisation strategy, y, 52% of businesses are actively pursuing carbon reduction as part of their current strategy, while 39% are not.

There has been a notable increase in customer inquiries about environmental and carbon savings, with a 26% rise in respondents reporting frequent inquiries compared to last year. This suggests that net-zero pressures at planning and tier 1 contractor levels are beginning to filter down to suppliers.

More member companies are making progress with their net-zero strategies. This year, 29% of businesses have completed and approved their strategies, compared to just 13% in 2023. Additionally, 39% have a draft strategy under discussion, up from 29%, and only 32% have not yet started, a significant decrease from 67% in 2023.

Diversity and Inclusion

Knowledge of diversity, equality, and inclusion issues is extensive in 10% of respondents, while 68% report having good to moderate knowledge.

The importance of having a diverse workforce is recognised as extremely important by 10% of respondents and very important by 48%, up from 38% in 2023.

Regarding female representation in management, 29% of businesses reported having no female managers, and 65% reported having less than half.

Overall, the 2024 State of the Industry survey suggests that businesses are concerned about the next 12 months, but believe activities are likely to improve following a change in government in July 2024.

The TRA would like to remind members that resources are available:

• The TRA’s Designer Development Programme (DDP) is available for new and experienced timber engineering designers
• Training courses produced in association with Edinburgh Napier University are available to members at discounted rates.
• Members that are looking to start their net-zero journey, can access TRA’s Journey to Net Zero

The TRA is always open to hearing from members about any concerns or suggestions they have about the industry. Please feel free to contact the TRA via info@tra.org.uk.

Full details on the survey results can be found by logging into the TRA members’ resources library; this is exclusively for existing TRA members.

Note: It is important to note that the survey was conducted before the 2024 General Election.