Scottish builders remain resilient despite uncertainty, says FMB Scotland

Scottish small to medium-sized (SME) construction companies remained resilient in the third quarter of 2019 despite continued uncertainty around Brexit and a potential second independence referendum, according to the Federation of Master Builders (FMB) Scotland.

Key results from the FMB’s latest State of Trade Survey for Q3 2019, which is the only quarterly assessment of the UK-wide SME construction sector, included: • Scottish construction SME workloads remained positive in Q3 2019 but fell slightly in the previous quarter; • Carpenters overtake bricklayers as the trade in shortest supply with more than half (56 per cent) of construction SMEs struggling to hire carpenters and joiners and 54 per cent struggling to hire bricklayers; • 86 per cent of builders anticipate that material prices will rise further in the next six months, slightly up from 77 per cent in Q2 2019; • 56 per cent of SME construction companies expect higher salaries and wages over the next six months, up from 51 per cent in the previous quarter Gordon Nelson, FMB Scotland Director, said: ‘Scottish SME construction companies have remained remarkably resilient despite ongoing political and economic uncertainty and sky-rocketing material prices. Builders across Scotland are busy and have seen consumer confidence remain robust.’

Nelson continued: ‘However, the costs Scottish builders are facing are escalating. Rising material costs have been a thorn in the side of many construction SMEs over the last few years and these are set to rise with 86 per cent of builders predicting material price rises over the next six months. Brexit uncertainty hasn’t helped with this, as approximately 60 per cent of the UK’s building material imports come from the EU – with a particular reliance in Scotland on imported timber for housebuilding.’