State of Trade Update: Contract Flooring Industry in 2024

Below, Richard Catt, CFA CEO, discusses the current state of trade in the contract flooring industry.

The CFA recently concluded its annual contractor membership return, an essential process that not only validates ongoing membership, underpinning why a CFA member is more attractive as a flooring partner, but also offers a clear snapshot of the current state of the contract flooring industry. The membership return, which mandates that companies demonstrate compliance with key criteria—such as possessing appropriate insurances, maintaining health and safety policies, and show credible activity in the industry—also sheds light on broader industry trends. This year’s return reveals significant insights into the challenges and progress within the sector, particularly in relation to workforce development, site conditions, and the evolving demands of main contractors.

One of the most pressing issues highlighted in this year’s return is the ongoing shortage of skilled labour. The data indicates a slight decrease in the number of additional fitters required to meet demand, from a peak of 20% in 2022/23 to 18% in 2023/24. This probably reflects a slight reduction in the pipeline, but the industry is still grappling with a considerable skills gap that threatens to hamper project timelines and quality. Even if demand drops further, we still have an ageing workforce and so must continue to add new talent to our labour pool.

The CFA has been proactive in addressing this challenge through initiatives like the Future Fitter campaign, which aims to attract and train new talent. However, the data on apprenticeships shows a mixed picture. While the percentage of companies employing at least one apprentice has seen a modest increase to 42% in 2023/24, the average number of apprentices per company remains below one. This highlights the need for a more robust commitment from companies to invest in the next generation of fitters.

A notable trend over the past five years is the steady percentage of flooring companies reporting that they work, if only in part or as a subcontractor, for main contractors, with 93.5% of companies reporting such engagements in 2023/24. This figure, while slightly down from last year, underscores the industry’s heavy reliance on large-scale projects managed by main contractors. However, working for main contractors is not without its challenges. The CFA’s campaigns—such as Clear Our Workspace and Winter Warning—have been instrumental in raising awareness about the importance of maintaining safe and suitable working environments. 

Other common issues reported by members include poor access, unfit substrates, compressed timescales, and inadequate welfare facilities. Alarmingly, there have also been growing reports of bullying or incompetent site management, where flooring contractors are pressured to proceed despite unsatisfactory conditions. In response, the CFA advocates for a “responsible no,” encouraging contractors to refuse work under unsafe or unreasonable conditions. The CFA offer support and toolkits that proactively help to educate clients but equally support flooring contractors in taking the “responsible no” stance if there is simply no other option.

In the wake of the Grenfell Tower tragedy and subsequent Building Safety Act, there is increasing pressure on all sectors of the construction industry to demonstrate business, technical, and installer competence. The final report on Grenfell, published in September, has reinforced this need, prompting the CFA to act. The association is now actively working on developing an industry standard for the contract flooring sector, ensuring that members are well-prepared to meet new regulations with minimal disruption.

The adoption of the Common Assessment Standard (CAS) is one area where progress can be made. Currently, only 11 members of the 280 sampled hold the Build UK’s CAS, which offers comprehensive coverage compared to other pre-qualification schemes like CHAS and Safecontractor but can still be delivered by these bodies. The CFA is committed to providing guidance and support to help more members adopt CAS, making them more time and cost effective in the process.

One of the most alarmingly consistent statistics from this year’s return is the ongoing issue of poor payment practices. On average, it now takes 42 days for contractors to receive payment, with an eye-watering £27 million in invoiced work overdue for payment. Additionally, members are currently owed £17.5 million in retention—a staggering figure that places significant financial strain on companies within the sector.

The CFA has a range of support, including our legal helpline, but the problem is clearly not easily resolved or caused by members. One option is the CFA’s dispute resolution service that can effectively remove unnecessary (or false) objections to payment based on querying the quality of fitting. A free, independent site report effectively removes any doubt about the quality of installation if there are indeed no problems evident. The report can even be used to support a legal claim.

As the contract flooring industry continues to navigate a challenging landscape, the CFA remains dedicated to supporting its members. From addressing the skills shortage to advocating for safer working conditions and promoting industry standards, the association is at the forefront of driving positive change. With ongoing efforts to increase apprenticeship delivery and a focus on new competency standards, the CFA is well-positioned to help the industry not only survive but thrive in the years to come. For companies interested in contributing to these efforts or seeking support, the CFA offers a wealth of resources and expertise. The CFA is a leading trade association representing the Flooring Industry.  If you would like an application pack or further information on the benefits of membership, please contact the CFA offices on 0115 941 1126, email or apply online at www.cfa.org.uk.