SNIPEF State of Trade Survey Q2 2026
July 1, 2026
REPORT
The Q2 2026 State of Trade report remains Stable, but under increasing pressure. Trading activity continues across the profession and payment performance remains broadly manageable. However, weaker forward workloads, declining margins, persistent cost pressures and constrained workforce capacity mean businesses are operating with less financial and operational headroom.
Trading conditions softened further during the quarter. Some 29% of firms traded above expectations and 33% as expected, while 38% reported quieter conditions, up from 29% in Q1.
Forward order books provide the clearest warning signal. Only 19% of firms reported workloads above expectations for the next six months, compared with 44% below expectations. This suggests that demand remains present, but businesses have less certainty over their future pipeline.
Cost pressure remains widespread, with 96% of firms reporting increased material and product costs, including 42% experiencing significant increases. At the same time, 54% reported declining profit margins. Product availability remains strong, with 96% rating availability as good or average, meaning cost rather than supply is now the greater concern.
Confidence presents a mixed picture. Confidence in the plumbing and heating profession improved, with 39% confident or very confident compared with 28% in Q1. Sentiment towards the wider UK economy also improved, although it remains weak, with 54% pessimistic or very pessimistic.
Workforce indicators continue to constrain future growth. Only 19% of firms expect to increase overall staffing, while just 14% are likely to recruit an apprentice. Skills availability remains a significant challenge, with 65% reporting low availability of skilled plumbing and heating professionals.
Q2 shows a profession that remains active and resilient, but with growing pressure on profitability, future workloads and workforce capacity. The overall position remains Stable, but the evidence is moving closer to the boundary with Weak and will require careful monitoring in the quarters ahead.
