Builders bullish despite cost pressures

Scottish construction firms saw a jump in work in the first quarter of 2017.

The latest Federation of Master Builders state of trade survey found demand for SME contractors rose in the first three months of the year, despite increasing cost pressures.

The survey took in responses from 322 Scottish construction SMEs.

Half of those polled said they expected order books to grow in the coming months, with just 5% saying a decrease in work was on the cards.

However, 85% said they expected costs to continue to escalate and the survey also noted skills shortages in the marketplace, with 58% saying they were struggling to hire carpenters.

FMB chief executive Brian Berry said it had been a strong start to the year for the trade.

“The first three months of 2017 proved to be very positive for construction SMEs, which reported strong growth underpinned by continuing resilience in the home improvement sector,” Mr Berry said.

“Workloads rose in every part of the UK, with particularly positive results in the devolved nations.

“Given the concerns that wider consumer confidence might be weakening, it’s encouraging that smaller construction firms aren’t sensing any drop-off in demand for their services.

“Indeed, despite Article 50 being triggered and the growing likelihood of a hard Brexit, these latest results demonstrate that builders are increasingly confident about the immediate future, with one in two forecasting higher workloads during the next quarter.”

FMB chief executive Brian Berry.