Issuu

Market Conditions Review WAVE 18

FIRE INDUSTRY ASSOCIATION

FIA Market Conditions Survey – Wave 18 The latest FIA Fire Industry Market Conditions Survey provides an overview of current conditions across the UK fire safety sector, drawing on responses from industry businesses. The findings provide insight into market demand, workforce activity, tender opportunities, costs, supplier performance, payment periods and international activity. Overall, the results present a picture of a sector experiencing continued demand alongside significant cost pressures. Half of respondents reported an increase in enquiries, recruitment of skilled labour remains more prevalent than reductions, and tender opportunities have increased for a substantial proportion of businesses. At the same time, rising costs remain one of the clearest pressures facing the industry. The survey provides FIA members and the wider sector with an opportunity to benchmark their experiences against those of other businesses and identify the trends currently shaping the fire safety market.

Enquiries and Orders Market demand remains relatively positive. Just over half of respondents (50.8%) reported receiving more enquiries during the period, including 41.0% who saw a slight increase and 9.8% who reported a substantial increase. A further 27.9% said enquiry levels had remained the same, while 21.3% experienced a decrease.

The results therefore suggest that growth in enquiries is being experienced by a meaningful proportion of the sector, although this is not universal. Private sector demand was particularly prominent. More than half of respondents (52.5%) reported receiving more enquiries from the private sector, compared with just 3.3% reporting more from the public sector. A further 37.7% reported broadly equal levels of enquiries, while 6.6% did not know. The geographical spread of activity also remains broad. UK-wide activity was the most commonly selected area, with London and the South East also featuring prominently. Respondents were able to select multiple regions, reflecting the fact that many businesses operate across several parts of the UK and, in some cases, overseas.

Tender Opportunities Tendering activity presents a generally positive picture. Almost half of respondents (49.2%) reported receiving more invitations to tender, comprising 36.1% receiving slightly more and 13.1% receiving a lot more. A further 27.9% reported no change, while 23.0% had experienced fewer invitations to tender.

FIRE INDUSTRY ASSOCIATION

The findings suggest that opportunities remain available across the market, although experiences vary considerably between businesses. The increase in tender invitations for almost half of respondents is encouraging, but businesses continue to operate within a competitive environment in which pricing and costs remain important considerations.

Costs and Supplier Pricing Cost increases continue to be one of the strongest and most consistent themes emerging from the survey. A significant 83.6% of respondents reported that costs had increased, with 60.7% experiencing a slight increase and 23.0% reporting a substantial increase. Only 14.8% said costs had stayed the same, while 1.6% reported a slight decrease. Supplier pricing shows an even clearer upward trend. Some 93.4% of respondents reported an increase, compared with just 6.6% who said prices had remained the same. These results demonstrate that businesses across the sector continue to operate in an environment of considerable cost pressure. With such a large proportion of respondents experiencing higher supplier prices, managing these increases while remaining competitive is likely to remain an important consideration for businesses.

Supplier Delivery Times The picture for supplier delivery times is more stable than that for pricing.

More than half of respondents (54.1%) reported no change in delivery times. Around a third (32.8%) reported an increase, while 13.1% experienced a reduction. The findings suggest that, although delivery times remain an issue for some businesses, there is considerably greater stability in this area than in supplier pricing. The contrast between relatively stable delivery performance and widespread price increases indicates that cost, rather than availability alone, is currently a particularly significant supplierrelated pressure.

International Trade Responses relating to international activity present a mixed but broadly positive picture among those businesses that answered the question. Of the 25 respondents who provided an answer, 48.0% reported an increase, including 36.0% reporting a slight increase and 12.0% a substantial increase. A further 40.0% reported no change, while 12.0% experienced a decrease. The relatively low response rate should be considered when interpreting these findings, as 36 of the 61 survey respondents did not answer this question. Nevertheless, among businesses that did respond, increased or stable activity was considerably more common than a reduction. Overseas activity was also identified within the geographical questions, demonstrating that international markets continue to form part of the business activity of a proportion of respondents.

FIRE INDUSTRY ASSOCIATION

Workforce Development The workforce findings are more positive than those reported in the previous survey. More than half of respondents (55.7%) reported no change in their skilled labour levels. However, 36.1% had recruited skilled labour, compared with just 8.2% who had shed skilled labour. This represents an encouraging balance between recruitment and workforce reductions, with businesses recruiting skilled employees more than four times as frequently as they reported shedding them. Looking ahead, the results also indicate a relatively stable employment outlook. In the workforce-related measures, the majority of respondents indicated that they expected levels to either remain unchanged or increase, with only a very small proportion anticipating reductions. While skills availability remains an important long-term consideration for the fire safety industry, the latest findings indicate that businesses are continuing to invest in skilled people rather than moving towards widespread workforce contraction.

same level. Only 3.3% anticipated a decrease. A related measure found that 37.7% expected an increase, 59.0% planned to maintain current levels and just 3.3% expected a reduction. Taken together, these findings indicate that the overwhelming majority of respondents intend to maintain or increase their current level of workforce-related investment rather than reduce it. Maintaining this focus will remain important as businesses respond to changing technical requirements, regulation and industry standards and seek to ensure that appropriately skilled and competent people are available to meet future demand.

Payment Periods Payment periods remain concentrated within the 31–60 day range. Of the 60 respondents who answered this question, 63.3% reported payment periods of between 31 and 60 days. A further 30.0% reported periods of between 61 and 90 days. Only 5.0% reported payment within 30 days or less, while 1.7% reported payment periods of 91 days or more.

Training and Workforce Investment The wider workforce findings indicate continued investment across much of the sector. In one forward-looking measure, 49.2% of respondents expected to increase activity or investment, while 47.5% expected to keep it at the

The findings show that almost two-thirds of respondents are operating with payment periods of 31–60 days, while almost a third are waiting between two and three months. This remains an important consideration for businesses managing cash flow and wider financial planning.

Key Findings The latest results point to a sector experiencing healthy levels of market activity while continuing to manage substantial cost pressures. • •

• • • • • • •

50.8% of respondents reported receiving more enquiries, compared with 21.3% reporting fewer. 52.5% reported receiving more enquiries from the private sector, while 37.7% reported broadly equal levels between the private and public sectors. 49.2% reported receiving more invitations to tender, compared with 23.0% receiving fewer. 83.6% reported increased costs, including 23.0% reporting a substantial increase. 93.4% reported increased supplier prices. 54.1% reported no change in supplier delivery times. 36.1% had recruited skilled labour, compared with 8.2% who had shed skilled labour. 63.3% of those answering the payment question reported payment periods of 31–60 days, while 30.0% reported 61–90 days. Among respondents answering the international activity question, 48.0% reported an increase and 40.0% reported no change.

Conclusion The Wave 18 survey presents a broadly resilient picture of the UK fire safety sector. Demand remains relatively strong, with half of respondents reporting increased enquiries and almost half receiving more invitations to tender. Workforce indicators are also encouraging, with recruitment of skilled labour substantially outweighing reported reductions.

However, these positive indicators sit alongside clear financial pressures. More than eight in ten respondents reported increased costs, while more than nine in ten experienced higher supplier prices. For many businesses, maintaining growth while managing these increases is therefore likely to remain a key challenge. Supplier delivery times appear comparatively stable, suggesting that some of the pressures facing businesses are increasingly centred on price rather than widespread deterioration in availability or delivery performance. Overall, the results indicate an industry that continues to adapt and pursue opportunities despite challenging operating conditions. The combination of sustained demand, workforce investment and increased tender activity provides positive signals, while continued cost pressures and extended payment periods underline the need for businesses to remain commercially vigilant. We thank everyone who took part in the latest FIA Market Conditions Survey. The contribution of members and industry businesses enables the FIA to build a clearer picture of market conditions and provide the sector with valuable insight into the trends, challenges and opportunities affecting the fire safety industry.

Have you received more enquiries in the last 12 months than in the previous year? (%)

43 6 15 43 31 28 44 8 12 41 15 27 24 12 13 14 3 10 4 8 OCT 20 26 OCT 2 02 OCT 2 5 02

OCT 20 26 OC T

25 20 4 T 202 OC 023 T2

OCT 20 26 OCT 2 02 OCT 2 5 0 OCT 2 2

OCT 2023

3 02

SLIGHTLY MORE

SAME

OCT 20 26

SLIGHTLY LESS

OCT 202 6 OC OCT

025 T2 4 2 20 CT 2023 O

5 202 CT T 2024 OC 023

OCT 2

SUBSTANTIALLY MORE

SUBSTANTIALLY LESS

Have you had more enquiries from the Public or Private Sector? (%)

56 24 20 10 54 7 14 36 44 50 36 OCT 20 26 OCT 2 025 OCT 2 02

OCT 2

OCT 20 26 OCT 2 025 OCT 2 0 OCT 2 2

3 02