BUILDERS across the region are bathing in a flood of orders - but a lack of skilled labour has hampered their ability to capitalise on the situation.

The Federation of Master Builders' (FMB) State of Trade survey showed that workloads and employment levels were expected to increase over the coming quarter.

But more than eight out of ten builders surveyed in the region reporting difficulties recruiting skilled labour.

In terms of growth, building companies nationwide reported business over the past three months was the strongest it had been since the third quarter of 2001.

In the North-East, just under two thirds (65 per cent) of builders reported an increase in workload in the second quarter.

Three quarters of the region's builders expect workloads to continue to grow in the third quarter of 2003, well ahead of the national average of 43 per cent.

Despite these healthy levels of growth and high expectations, for the immediate future at least, the shortage of skilled labour remains the main issue facing builders.

While 57 per cent of the region's builders expect to increase the size of their workforce in the third quarter, 82 per cent reported difficulty in finding skilled labour.

Barry Oliver, FMB Northern Counties regional director, said that the current labour pool cannot meet the demand or expectations of the market.

"It is good to see that business remains brisk for builders in the region and that there is optimism that this will continue in future.

"Whilst this growth is great news for our members and the region's economy, the high percentage of builders reporting difficulties recruiting skilled labour will increase pressure on existing workers and compound an already difficult situation.

"The construction industry desperately needs to attract new blood into the industry to meet the demand and take business out of the hands of cowboy builders."