National Federation of Roofing Contractors – Written evidence (UKH0074)
6.1. The construction sector, as a whole, and the roofing industry in particular, currently faces a number of serious barriers that will affect the ability of firms to deliver housing at the quality and pace required. The industry is being asked to deliver more, at a higher quality, at a quicker pace with less resource. This is simply not sustainable in the long term.
6.2. Roofing contractors are seeing an increasing deterioration in the availability and spiralling cost of skilled labour and materials, meaning that any ambition to increase output in the near future is unrealistic without support for the industry.
6.3. As roofs and roofers are naturally essential to housebuilding, delivery of 300,000 homes a year to high standard and within the required timescales will require a radical intervention, and soon.
6.4. Barriers:
6.4.1. Labour: Roofing contractors are reporting serious difficulty in sourcing appropriately skilled labour to work on their projects.
6.4.1.1. Increasing (or, in the longer term, even maintaining) productivity will require an increased supply of manpower, and a workforce with a skillset that matches the needs of the housebuilding sector.
6.4.1.2. The NFRC/Glenigan State of the UK Roofing Industry survey for Q2 of 2021 indicated that three quarters (76 per cent) of roofing contractors reported experiencing difficulties with recruitment during the quarter, with companies reporting severe skill shortages, with much of the labour available being of poor quality.[1]
6.4.1.3. The most commonly reported areas are in the pitched roofing market with roof slaters and tilers being the group most likely to be named as difficult to find for hire (47 per cent), followed by specialist slaters (32 per cent) and tilers (31 per cent).
6.4.2. Material availability: The availability of roofing materials continues to deteriorate and has done so since manufacturing paused for a period in the first lockdown in March 2020. This has been accompanied by a consequent increase in prices.
6.4.2.1. The NFRC/Glenigan State of the Roofing Industry survey reports that 81 per cent of firms felt that material availability worsened during Q2 of 2021.
6.4.2.2. The report showed that over half (54 per cent) of roofing contractors were affected by a shortage of concrete roof tiles, with 49 per cent finding it difficult to obtain enough timber battens, 44 per cent reporting a shortage of insulation and 42 per cent reporting a shortage of general timber.
6.4.2.3. A shocking 100 per cent of respondents to the survey reported that material prices rose in the second quarter of 2021. Some qualitative reports from respondents indicated price rises of almost 300 per cent for some products including timber battens.
6.4.2.4. The most recent Building materials and Component Statistics from the Department for Business, Energy and Industrial Strategy for August 2021[2] show that the production of concrete roof tiles fell from 6,080,000 m2 in Q1 2021 to 3,930,000 m2 in the following quarter. The first quarter of the year also saw a drop in the number of deliveries of roof tiles fall by a third. Stock levels are now at an all-time low of 1,658,000 m2 – this compares with more than double that figure in the same quarter in 2019, which was at 4,293,000 m2
6.4.2.5. We welcomed the recent twelve-month extension on post-Brexit certification (UKCA) requirements for most products including construction products, which will allow firms more of the necessary time to test products and prepare for the changes. However, even a year may not be enough time to retest and label the necessary products. There is also still much certainty around certain elements of the changes including whether labels should be affixed to a product.
6.4.2.6. The contribution of the shortage of HGV drivers to product shortages is well documented and is indeed a contributing element to material shortages and project delays in the roofing industry and wider construction sector.
6.4.2.7. On 3 September 2021 the Builders Merchants Federation reported that a ‘snap survey’ of its members had found that haulage issues were the main challenge faced by both building merchants and suppliers.[3]
6.4.2.8. Unblocking the backlog of tests for HGV licenses, supporting new entrants to the sector, and putting HGV drivers on the shortage occupation list for a temporary period, would improve the ability of roofing contractors and housebuilders to complete projects on time and to specification.
6.4.3. Payment practices: Cashflow is a major issue for construction businesses, who often incur their major costs long before they are fully paid for a project (when buying materials, paying operatives, and so on). This hinders investment in the business, removing room to grow by taking on or training additional operatives, particularly, of course, apprentices, who are an investment rather than offering immediate pay-off.
6.4.4. Improving cashflow for roofing contractors would encourage the hiring and training of new operatives, especially as many operatives are finding their workloads and enquiries are rapidly increasing post-pandemic and they are finding themselves with long waiting lists, or having to say no to clients. Three key barriers to cashflow are noted below:
6.4.4.1. Retentions specifically hinder cashflow in the roofing industry. This a certain amount of money, held back by the housebuilder, to rectify any defects. Research published by NFRC in May 2021 showed that roofing and cladding contractors have on average 5.8 per cent of their total turnover held in retention (equivalent to £300m of cash across the industry). This is more than the entire annual budget of the construction skills body, CITB. It is generally accepted that retentions are an outdated practice that have done little to improve the quality of housebuilding. The government should legislate to ban retentions and alternative way of ensuring defect free work to be sought.
6.4.4.2. Lengthening payment terms—an increasing numbers of late payment on due accounts, were reflected in the NFRC/Glenigan State of the Roofing Industry report for Q2 of 2021. Firms reported that the late payment of due accounts is widespread. Whilst 65 per cent of firms have contractual payment terms of 30 days or less, only 39 per cent of firms were, on average, paid within that period. A similar picture was reported by firms with longer payment terms. Only six per cent of firms had payment terms of 46 days or more, but 21 per cent of firms reported that was the average time that they had to wait for payment. This again acts as another hinderance on cashflow for roofing contractors.
6.4.4.3. Fixed-price contracts—many housebuilders have fixed-price contracts with roofing contractors which we agreed before the widespread price increases we have seen recently. This means that often the roofing contractors has to absorb the price increase, which as state earlier in this evidence, can be in the hundreds of per cent. It is only fair for house builders to take on this increase in cost, rather than passing it down their supply chain.
8. What can be done to improve the quality of new homes? How can the design and aesthetics of new homes be improved?
8.1. In the past the business model of some larger house builders has tended to incentivise firms to become more focused on the number of completions and sales over the long-term suitability of their product. Emphasis has remained on the number of homes rather than the quality of those homes. The government is in danger by placing too much emphasis on numbers at a time where there are supply chain restrictions, of overseeing a deterioration in quality.
8.2. Unfortunately, anyone can call themselves a ‘roofer’ and set up a roofing business, with no skills, experience or qualifications, and this can lead to unsuitable operatives being involved with projects. Equally, this can mean that who have some skills or experience, but not necessarily sufficient skills for the project, are brought on. With acute skill shortages, and a commercial drive from house builders for completions, perverse incentives are created to use unskilled roofers, or even labourers to do roofing work.
8.3. Encourage the use of reputable roofing contractors: One way of tackling this is by encouraging and incentivising housebuilders to exclusively use contractors who have a proven level of competence. For the roofing sector, NFRC members are thoroughly vetted to ensure that they offer the highest standards in workmanship and customer service. All member contractors are rigorously vetted both before joining NFRC and every three years thereafter. These include inspections of past contracts to verify quality craft skills and technical competence, satisfactory public, employers’ and third-party insurance cover, and their compliance with Health and Safety Legislation as well as with British and European Standards and the NFRC Code of Practice. Using members of a reputable industry trade body like NFRC means an extra level of protection against contractors who do not take pride in their work and do not have the necessary competence.
8.4. Ensure operatives are competent: A further way of ensuring a competent workforce is through third party accreditation of operatives. NFRC RoofCERT was established to allows qualified and skilled experienced roofers to prove their competence in a number of key areas and roofing disciplines through a knowledge test, six mandatory health and safety courses, and either proof of a vocational qualification or one-day assessment. Crucially, RoofCERT allows for the revalidation of competence, as it needs to be renewed every three years.
We are working with the housebuilding industry, including some of the largest house builders in the UK, to help accredit their roofing workforce through RoofCERT. This could be a model other trades could look to replicate.
8.5. Make roof design suit the proposed roof covering- It is important to note that good design and good aesthetics are not the same conceptually. Faux dormers, Juliet balconies, false chimney stacks, and unnecessary valleys and gables in a roof add expense to roofs, use up extra materials and the precious time of the available skilled roofers, and are by and large useless, requiring maintenance later on and adding kerb appeal but in truth lessening value. Designing the roof to suit the proposed roof coverings would help to ensure that this element of the home was durable and of high quality. The benefits of good design must be understood by the buying public and impressed upon housebuilders.
9. Is the workforce equipped with the professional, digital and other skills required to meet housing demand, for example in the construction, planning and design sectors? What can be done to overcome skills shortages?
9.1. Skill shortages are chronic in roofing: The roofing industry’s workforce is suffering a skills shortage that will only be exacerbated in future years due to the changing demographics of the industry, as a result of a limited entry to the industry from young workers, in comparison to the number of workers who are nearing the end of their careers. It is imperative that provision for training improves alongside the promotion of roofing as a viable career by schools and colleges.
9.2. The NFRC/Glenigan State of the Roofing Industry report showed that 76 per cent of firms were experiencing increased difficulties in recruiting suitable labour in Q2 of 2021. Just one per cent reported finding recruitment easier than in Q1.
9.3. There is a lack of provision for roofing apprenticeships: Roofing apprenticeships are available at only a small number of colleges, but they are few and far between. We estimate there are only 11 training providers across England providing the new roofing trailblazer standard.
9.4. This means that those considering beginning a career in roofing at the post-16 stage may be unable to enter a relevant course or deterred because no local colleges offer the opportunity. Indeed, according the official statistics from the Institute for Apprenticeships and Technical Education (IfATE), as of July 2021, there were only 171 learners currently undertaking the roofing trailblazer. This is compared with 3396 learners for bricklaying, and 9134 for carpentry and joinery.
9.5 Apprenticeships are often hard to find: Apprenticeships for roofing based with contractors are also difficult to find. A search on the government’s ‘Find an Apprenticeship’ website on one randomly selected day returned 54 results for bricklaying apprenticeships, but only one single result for roofing apprenticeships. NFRC itself was recently contacted by a mother who was desperate to find her son a roofing apprenticeship in her locality but had not been able to find one despite her best efforts; an industry that desperately needs more people on training courses and gaining skills and qualifications cannot afford to lose out on promising young individuals simply because no one has facilitated their entry into the sector by creating a training opportunity.
9.1.4. There has been too much emphasis on university at the expense of the trades: One barrier for young people’s entry to trades is relentless emphasis on university as the best option for all young people. Improving the reputation of roofing in particular, and the construction industry as a whole, in the eyes of secondary schools and colleges is key. Working in the roofing industry can often bring career success, opportunities for owning a business, and a very good income, and the image of leaving school to be a labourer with no opportunities ignores the ample space for progression, whether on-site or in managing a construction firm, that is available in the industry. A changed approach to careers’ support in schools and colleges, one that understands the relevant career path and associated opportunities, and identifies and aids individuals who could flourish in a trade such as roofing, is required.
11. What are the main opportunities and areas of innovation for meeting the UK’s housing demand?
11.1. Proper engagement with the industry is needed: government should consult with industry as early as possible in the policy process will improve government initiatives to meet the UK’s housing demand. Well-meaning schemes for research and development grants and partial training have fallen short in their attempts to improve the quality and reputation of the industry. Whilst not in this sector, a perfect example of this is the recent Green Homes Grant Voucher Scheme, that failed due to a lack of capacity from industry. We warned the government of this, but the government carried on anyway and the scheme failed.
11.2. A full understanding of the industry’s current and projected needs will assist in producing support that serves the industry’s key needs, and therefore enable the industry to fill the demand for roofing work. The industry can only deliver on housing demand with support from the government in combating the mounting crises of skills and materials, as well as a client base of housebuilders who are properly informed of the current challenges. Schemes to help digitise and modernise roofing businesses, such as the government’s Help to Grow: Digital initiative ignore what their target businesses are really asking for, in order to enable them to grow: enough and good quality materials and competent operatives.
11.3. Preplanning interaction between developers and manufacturers would be an important step in improving manufacturers’ confidence in future workload, as well as ensuring supply can meet demand. Manufacturers cannot invest in additional capacity if they are not assured that demand will be present for the additional goods, and uncertainty caused by Covid-19 and Brexit, as well as the other difficulties currently faced by the construction industry, has made it even more unlikely that manufacturers will take the leap and expand, despite the increased need for construction products in the UK.
September 2021
7
[1] The survey is available here: nfrc-state-of-the-uk-roofing-industry-2021-q1-(glenigan).pdf
[2] https://www.gov.uk/government/statistics/building-materials-and-components-statistics-august-2021
[3] BMF, ‘Haulage a priority for BMF’, 3 September 2021 [online]. Available at: https://www.bmf.org.uk/BMF/News/Haulage-a-priority-for-BMF.aspx