Rising costs are placing growing pressure on the financial resilience of plumbing and heating businesses, according to the latest quarterly report from the Scottish & Northern Ireland Plumbing Employers’ Federation (SNIPEF).
SNIPEF is a trade association for plumbing and heating businesses based in Scotland and Northern Ireland. It has just over 700 member firms employing more than 3,500 plumbers between them.
In its Q4 2025 state of trade survey, 41% of firms reported that they were busier than expected, with 36% reporting workloads above expectations. However, this improvement in activity has not translated into stronger financial performance, with nearly half of firms (47%) reporting falling profit margins, up from 35% in Q3, including 14% experiencing a significant decline. Cost pressures also remain widespread, with 93% of firms reporting rising input prices.
Confidence within the trade improved quarter on quarter, with 45% of firms feeling confident or very confident, up from 33% in Q3. In contrast, sentiment towards the wider economy remains weak, with only 9% of respondents confident or very confident about the UK economy, while 51% reported being pessimistic or very pessimistic.
SNIPEF chief executive Fiona Hodgson said: “Q4 shows that demand is holding up and firms are continuing to find ways to stay resilient. However, the defining feature of the quarter is the deterioration in profitability. Too many businesses are absorbing higher costs and ongoing supply chain pressures without being able to protect their margins.”
The SNIPEF state of trade report also highlights a growing contradiction in the plumbing and heating labour market. Skills shortages remain widespread, with 67% of firms reporting low local availability of skilled professionals, yet few are prepared to do anything about it – 64% said that there were very unlikely to recruit an apprentice in the next six months. SNIPEF says it is because of inadequate government support.
“Employers want to train the next generation, but the economics no longer stack up,” Hodgson said. “We are seeing acute skills shortages at the same time as businesses are pulling back from apprentice recruitment because the costs sit almost entirely with the employer. Without proper support, firms are being asked to absorb thousands of pounds in training costs at a time when margins are already under severe pressure.”
Got a story? Email [email protected]
