Wales needs 1,240 builders a year despite planning applications fall 2026

Key Points

• Applications from homeowners in Wales have dropped by 15% over the last two years, FMB Cymru states.
• It is considered to be the sharpest decrease in England and Wales.
• Wales still suffers from the lack of construction labor despite decreased demand.
• According to FMB Cymru, Wales will need 1,240 more construction workers per year to satisfy the anticipated demand.
• The number is based on the Construction Industry Training Board’s Construction Workforce Outlook that states Wales needs 6,200 more workers in the period from 2026 to 2030.
• As a result, failure to provide proper training of builders may result in missing a chance to benefit from any economic recovery associated with home improvement and construction in the future.
• The warning is based on the previous research conducted by FMB that indicated the skills shortage in Wales and led to delays and canceling of projects due to that problem.
• It should be noted that the FMB Cymru 2026 Manifesto suggested 2,200 more skilled workers per year, whereas 300 workers were retiring from the workforce per year.

Wales (Wales Times) October 16, 2026 — Wales must train more construction workers now or risk missing out when demand for building and home improvement work recovers, FMB Cymru has warned.

As reported by the Federation of Master Builders, homeowner planning applications in Wales have dropped 15% in two years, the steepest fall recorded anywhere in England and Wales. Despite that fall in demand, the industry remains short of skilled workers, and FMB Cymru says the sector must prepare for a future upturn rather than reduce investment in training.

Why is Wales facing a construction skills shortage?

Wales’s construction skills shortage reflects a long-term imbalance between the number of workers leaving the sector and the number being trained to replace them.

FMB Cymru’s Builders’ Manifesto for Wales 2026 stated that the construction sector needed an additional 2,200 skilled workers each year to meet demand, while losing around 300 workers annually. It also warned that one-third of construction workers were aged over 45, while only 20% were aged between 16 and 24.

As reported by Construction Management, FMB Cymru called for a national construction skills strategy, stronger incentives for small and medium-sized enterprises to employ apprentices, and funding that rewards successful progression into employment.

The organisation has repeatedly argued that the current skills and training system is not delivering enough workers for the industry. In its earlier State of Trade Survey, published with the Chartered Institute of Building, FMB said the system was “not fit for purpose” and required “urgent” reform.

How many workers does Wales need?

FMB Cymru says Wales needs to recruit an additional 1,240 construction workers every year to meet expected demand.

That figure is drawn from the Construction Industry Training Board’s Construction Workforce Outlook for Wales. The report estimates that construction will need to increase recruitment by an average of 1,240 extra workers per year between 2026 and 2030, equivalent to 1.1% of the current workforce.

Over the five-year period, that amounts to the equivalent of 6,200 additional workers. The CITB report says businesses remain cautious about hiring because of lower levels of work, rising costs and wider economic risks.

The figure differs from FMB Cymru’s earlier manifesto estimate of 2,200 workers a year. The manifesto was published in February 2026 and set out the organisation’s wider policy demands for the next Welsh Government, including support for local SME housebuilders and reform of construction training funding.

What has happened to homeowner planning applications?

Homeowner planning applications in Wales have fallen by 15% over two years, according to FMB Cymru.

The organisation says this is the steepest decline anywhere in England and Wales. It presented the fall as evidence that demand for home improvement and building work has weakened, even though the underlying shortage of skilled labour has not gone away.

The warning comes despite signs earlier in 2025 that Welsh construction workloads were improving. FMB and the CIOB reported that 53% of Welsh builders had higher workloads in the first half of 2025 compared with the end of 2024, while 56% reported more enquiries.

However, the same survey found that 76% of firms were affected by a lack of skilled tradespeople. It linked shortages to job delays for 44% of firms and cancellations for 38%.

What are Welsh builders saying about delays?

Welsh builders have continued to report that skills shortages are disrupting projects.

FMB’s survey for the first quarter of 2026 found that 72% of Welsh firms were affected by a lack of skilled tradespeople, up from 61% in the first half of 2025. The organisation reported that this led to delays for 49% of firms and cancelled projects for 22%.

The hardest trades to recruit were carpenters, cited by 30% of firms; bricklayers, cited by 29%; and plumbers or HVAC trades, cited by 23%. FMB also reported shortages of workers with knowledge of building safety, sustainable building practices and new technologies.

Separately, 40% of firms said projects had been delayed by extreme weather or climate events, while 36% cited planning delays.

Why does FMB Cymru want action now?

FMB Cymru argues that training must begin during a period of weaker demand so that Wales has enough qualified workers when activity increases.

The organisation’s latest warning says Wales must “train builders now” or “miss out on the recovery”. It links the fall in homeowner planning applications to the need to maintain investment in apprenticeships, training and workforce development rather than allowing the pipeline of skilled labour to weaken further.

FMB Cymru has previously said that local, skilled tradespeople are important to communities, the economy and the delivery of housing and retrofit targets. In its manifesto, it said that without decisive action, Wales risked being unable to meet housebuilding or retrofit ambitions because there would not be enough people to carry out the work.

The manifesto called for a rebalancing of Welsh Government funding towards incentives for SMEs to employ apprentices. It also proposed outcome-based funding that rewards successful progression into employment.

What does this mean for housing and home improvements?

The shortage could affect the delivery of new homes, repairs, maintenance and energy-efficiency work across Wales.

FMB Cymru’s manifesto said SME builders once delivered 40% of new homes in Wales in the late 1980s but now deliver just 9%. It urged the Welsh Government to support local SME housebuilders through stronger housing targets, small-site allocations in development plans and access to finance for pre-planning work.

The organisation also highlighted the impact on homeowners. Its research found that one in ten homeowners in Wales had been affected by construction-sector problems over the previous five years.

Earlier FMB research said rising costs and persistent skills shortages could mean homeowners face higher prices, longer delays and, in some cases, cancelled projects.

Background of the development

FMB Cymru is the Welsh arm of the Federation of Master Builders, a trade body representing builders and construction firms across the UK. Its latest intervention follows a series of warnings about labour shortages, rising costs and weak demand in the Welsh construction sector.

In February 2026, FMB Cymru published The Builders’ Manifesto for Wales 2026, setting out proposals for the next Welsh Government. The manifesto focused on housing delivery, support for SME builders, planning reform, skills and apprenticeships.

It said Wales needed an additional 2,200 construction workers each year, while around 300 were leaving the workforce annually. It also warned that the age profile of the workforce made the replacement pipeline “dangerously thin”.

The latest warning adds new context: even with homeowner planning applications down 15% in two years, the sector still needs more workers. The CITB’s Construction Workforce Outlook estimates that Wales needs 1,240 extra workers annually between 2026 and 2030, or 6,200 over five years.

Prediction: How this could affect Welsh homeowners and builders

If training and recruitment do not increase, Welsh homeowners may face longer waits for builders, higher quotes and greater difficulty finding available tradespeople when demand recovers.

For builders, a continued shortage could restrict their ability to take on work, expand their businesses or complete projects on schedule. FMB’s 2026 survey found that 30% of Welsh firms said skills shortages had halted plans to expand their company.

For apprentices and people considering construction careers, the warning suggests continued demand for skilled trades, particularly in carpentry, bricklaying, plumbing and HVAC work. However, the availability of apprenticeships will depend on whether SME builders receive stronger financial incentives and whether training funding is reformed.

For policymakers, the development indicates that a fall in planning applications does not remove the need for workforce investment. FMB Cymru’s position is that Wales must build capacity now so that the construction sector can respond when homeowner demand, housebuilding activity and retrofit work increase.