Builders in ‘state of limbo’

Scotland’s construction sector is stuck in a “state of limbo” because of political and constitutional uncertainties, according to an industry leader.

The claim was made by Scottish Building Federation (SBF) managing director Vaughan Hart, as results of the organisation’s latest survey of confidence levels were published.

They show overall confidence in the sector to be “marginally positive” for the third quarter in a row, having slumped at the end of June, after the UK referendum vote to leave the EU. Of firms questioned, 40% said they were unsure what impact Brexit would have on their business and 33% predicted it would have a negative impact on the sector in Scotland. MrHart said: “Looking at this latest set of results, there is a real sense that the industry remains stuck in a state of limbo. The recent economic signs have been positive with strong output and rising employment within the Scottish construction sector. “At the same time, ongoing uncertainty onthe political and constitutional fronts is making industry employers feel quite nervous about the future.”

Mr Hart added: “In terms of future trends, most building employers judge that prioritising additional public investment, particularly towards housing, would bring the greatest benefit to the industry and to their businesses.

“Conversely, a general fragmentation within the industry and a growing trend towards self-employment poses the greatest threat to future industry prospects. Movesawayfrom direct employment towards project management companies that outsource their labour is also viewed as a negative development.”