Skills, Costs and Security – The Realities Facing Today’s Trades

From builders and joiners to plumbers, electricians and beyond, the UK’s trades industry is facing mounting challenges with skills shortages, rising costs and security concerns. These added pressures, consequently, affect day to day work, long term planning and the industry’s future.

At NFU Mutual New Forest, Isle of Wight and Bournemouth, we work with a wide range of traders across our region. Here’s a closer look at the main challenges affecting the sector.

Skills shortages and staff challenges
A shortage of skilled workers is one of the most pressing issues for trade businesses. An ageing workforce, difficulties attracting young entrants, and rising demand for housing and infrastructure projects have created a widening gap between supply and demand.

The Construction Skills Network predicts that the industry will need an additional 251,500 workers by 2028 to meet demand [1]. Yet even now, 38,000 construction roles remain unfilled in the three months to February[2]. Plasterers, roofers, electricians, welders, and especially carpenters are in short supply with 37% of Federation of Master Builders members reporting difficulties[3]. There’s also a growing shortage in technology and digital skills as the sector increasingly adopts modern tools and methods.

For many older tradespeople retirement is uncertain, with many individuals aged 65 and older stating that they may never retire. Meanwhile, 69% of business owners are concerned that they won’t have anyone in line to take over when they retire[4]. Younger individuals are often discouraged by a lack of awareness about available career opportunities or a belief that they lack the necessary skills.

Apprenticeships remain a proven route into trades, but take-up is falling short. In 2024, more than 80% of tradespeople surveyed by Screwfix felt that not enough apprentices were joining the industry[5]. Many smaller businesses have never taken on an apprentice and are unaware of the support available to do so. 

The shortage in skills is pushing wages higher, adding cost pressures for contractors. Yet morale remains low. 63% of UK tradespeople reported feeling less optimistic about their careers in January compared with the previous year[6]. Some businesses are fighting back by offering training or mentoring, with two in five tradespeople (40%) investing in upskilling or learning new techniques (in 2024). However, 60% did not[7]. Training not only builds skills but is critical for preventing workplace accidents and protecting workers. 

The UK government has pledged to support workforces with training. In March, they announced a £600 million investment to train up to 60,000 bricklayers, electricians, engineers, and carpenters by 2029[8]. 

Cost pressures, payment delays and tax concerns
Traders have faced years of price turbulence due to global shipping disruptions, Brexit, and the war in Ukraine, have left many trades with material shortages and high material costs. Steel prices still remain affected by supply chain bottlenecks, high energy costs in manufacturing, and tariffs.

The Building Cost Information Service (BCIS) forecasts construction costs will increase by 17% over the next five years[9].  Rising wages including an increase in April 2025 to Employers' National Insurance Contributions from 13.8% to 15% and a 6.7% rise in the National Living Wage, companies may have to raise their prices.[10]. Meanwhile, others are facing shrinking profit margins or even experiencing losses[11].

For smaller operators, admin and compliance tasks often fall to the tradesperson or unpaid family members[12], taking time away from paid work. Late payments remain a major frustration, with many tradespeople doing it themselves. Research by the Scottish and Northern Ireland Plumbing Employers Federation (SNIPEF) found that 44% of surveyed plumbing and heating firms reported issues with payment delays[13]. A cashflow challenge that can be detrimental for small businesses.

Regulatory changes and compliance requirements
The sector is experiencing significant regulatory changes as the Government plans to deliver 1.5 million new homes over five years under the Get Britain Building Again programme. This comes alongside a revised National Planning Policy Framework that puts an emphasis on brownfield redevelopment and 'grey belt' land use[14].

A stronger focus on brownfield and “grey belt” land, plus new sustainability-driven building regulations, will require tradespeople to update skills and material knowledge. Post-Brexit standards, evolving data regulations, and strict health and safety rules add further complexity, particular for small businesses that must juggle these demands alongside day-to-day work. 

Theft and security concerns
Tool theft is a persistent and growing threat. According to On The Tools, 86% of UK tradespeople worry about having their tools stolen[15]. Trades United, a group designed to tackle tool theft, describes the crime as a “nationwide plague that cripple’s businesses in losing work, earnings, and sometimes, confidence”[16].

In response, many tradespeople are investing in extra locks, drill plates, GPS tracking devices, and alarms. Some even turn down jobs in areas perceived as higher risk, sacrificing income to protect their equipment and impacting mental health. In fact, The On The Tools found 93% of tradespeople have experienced some form of mental ill health, with crime, lone working, and financial stress, among the causes[17].

Looking ahead
The UK’s trades sector is the backbone of everything from housing and infrastructure to day-to-day repairs that keep communities running. Yet skills shortages, rising costs, regulatory pressures, and security risks are creating difficulties that can’t be ignored.

Addressing these issues will require a joined-up approach. This could be anything from boosting apprenticeships and upskilling existing workers, to tackling late payments and tool theft, and ensuring regulations are practical as well as progressive. 

Despite these pressures, the sector has shown resilience. With targeted investment, smarter training routes, and better protection for workers and businesses, trades can not only survive but thrive. 

Support you and your business
At NFU Mutual New Forest, Isle of Wight and Bournemouth, we support trade businesses of all sizes helping to protect assets such as tools, manage risks and plan for growth.

Our friendly, experienced team lives and works in the communities we serve. We pride ourselves on building long-term relationships founded on trust, understanding and specialist local knowledge. 

From our offices in Brockenhurst (New Forest), Newport (Isle of Wight) and Westbourne (Bournemouth), we’re committed to doing things the traditional way, with face-to-face conversations, personal visits, and a dedicated team member who’ll be there whenever you need them.

With a genuine commitment to our customers and an in-house claims team who’ll deal with you directly, we’re here to help protect what matters most.

Because with us, protecting your business is personal. 

New Forest: 01590 607134 | New Park, Brockenhurst, SO42 7QH  

Isle of Wight: 01983 897804 | 2 Langley Court, Pyle Street, Newport, PO30 1LA  

Bournemouth: 01202 070317 | 16 Landseer Road, Westbourne, BH4 9EH  

To find out more contact our agency

 
[1] CITB, Construction Workforce Outlook, 2025 
[2] Reuters, March 2025 
[3] Federation of Master Builders, State of Trade Survey, Feb 25 
[4] Screwfix, Voice of the Trade Report, 2024 
[5] Screwfix, Voice of the Trade Report, 2024 
[6] On The Tools, March 25 
[7] On The Tools, March 25 
[8] Gov.uk, March 25 
[9] BICS, Building Forecast, Oct 25 
[10] Gov.uk, October 2024
[11] Federation of Master Builders, State of Trade Survey, Feb 25  
[12] Screwfix, Voice of the Trade Report, 2024 
[13] SNIPEF, State of Trade, Q4 24 
[14] Gov.UK, New Homes, Dec 24 
[15] InsightDIY, Tool Theft Concern, Feb 25 
[16] BBC.co.uk, Tool Theft Plague, Feb 25 
[17] On the Tools, 2023