The Scotsman

Covid-19 hammers Scots constructi­on

● Newly formed trade body finds 68% of firms have furloughed staff

- By EMMA NEWLANDS emma.newlands@jpimedia.co.uk

The Scottish constructi­on industry is being “hard hit” and needs further support, with cashflow having completely dried up for nearly 80 per cent of firms, according to new “disturbing” survey results.

The study was carried out on behalf of the newly-establishe­d Constructi­on Industry Coronaviru­s (CICV) Forum, which was created a fortnight ago and now has 16 members.

It has also revealed that more than half of firms who took part in the poll say they’re owedvitalm­oniesfromp­ublic and private sector clients, with invoices now overdue.

The effect of the Covid-19 crisis and the recent Scottish Government instructio­n for all non-essential building work to cease is revealed in the survey, which was carried out between 1 and 14 April.

The survey analysed responses from 377 constructi­on companies across Scotland, ranging from electricia­ns, builders and plumbers to surveyors, architects, roofers and joiners.

As a consequenc­e of the current pandemic, 262 of the companies surveyed said cashflow has stopped, while more than two thirds say they’ve furloughed staff, 37 per cent are shut completely, while more than a quarter currently have staff and sub-contractor­s in self-isolation.

John Mckinney, secretary of the National Federation of Roofing Contractor­s, the Stone Federation and the Scottish Contractor­s Group – which are members of the new forum – said: “These disturbing results illustrate very clearly that the constructi­on sector in Scotland is being hard hit, despite the measures that have been put in place to alleviate the pain.

“It is clearly incumbent on all branches of government and public bodies to step up efforts to expedite payments under the Coronaviru­s Job Retention Scheme announced by the Chancellor in March. However, there is a danger that even this may be too late for many firms, especially smaller enterprise­s. The same urgency is required for the Coronaviru­s Business Interrupti­on

Loan Scheme, which needs to be fast-tracked.

“Nearly half of companies which have applied have found the process cumbersome and difficult.”

Respondent­s also called for better informatio­n from the UK and Scottish government­s, with requests for greater clarity over both the work can be carried out and the financial and commercial implicatio­ns of the virus.

Fiona Hodgson, chief executive of CIVC Forum member the Scottish and Northern Ireland Plumbing Employers’ Federation, echoed the industry’s frustratio­ns.

Hodgson, who is leading the commercial sub-group of the CICV Forum, said: “Small constructi­on sector companies are taking the brunt of the shutdown at the moment and many simply do not have the resources to sustain a long period of inactivity… fasttracki­ng of financial support from government will be crucial as this crisis develops.”

Meanwhile, the Constructi­on Scotland Innovation Centre has launched its i-con initiative to support the built environmen­t sector during the current global coronaviru­s crisis. CSIC is asking for challenges to be registered on the portal, which will then be communicat­ed to attract proposed solutions.

“These disturbing results illustrate very clearly that the constructi­on sector in Scotland is being hard hit, despite the measures put in place”

JOHN MCKINNEY

 ?? PICTURE: RUI VIEIRA/PA WIRE ?? 0 The survey analysed responses from 377 constructi­on companies
PICTURE: RUI VIEIRA/PA WIRE 0 The survey analysed responses from 377 constructi­on companies

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