Thursday, 17 July 2014
Private sector continues to provide forward momentum in Scottish construction market
RICS UK Construction Market Survey, Q2 2014
Private housing, commercial and industrial sectors are driving growth within the construction industry across Scotland, according to RICS Q2 2014 Construction Market Survey.
[Pictured: Sarah Speirs, Director RICS Scotland.]
A net balance of 29% of chartered surveyors stated an increase in private house building as the property market in Scotland continues to recover. With a net balance of 26% of respondents reporting an increase in construction workloads during the last three months, positive signs were also reported in the private commercial sector (a net balance of 26%).
Additionally, investment in infrastructure within Scotland continues to have a positive impact, with a net balance of 37% reporting a growth in infrastructure construction in the second half of 2014.
However, a reported shortage of construction professionals in Scotland (a net balance of 37%) is likely to present a challenge to further strong growth in the sector.
Sarah Speirs, Director RICS Scotland, commented: “The UK construction market is mirroring the natural consequence of a rise in demand after five subdued years. The upsurge in housing demand is creating pressure across an industry which failed to invest in attracting new talent or in the training of existing employees at the height of the economic downturn and this in turn is creating similar effects among material supply.
“The good news is that there is reason for optimism, with workloads, profits and employment all forecast to deliver growth over the next 12 months and it is now the responsibility of industry to invest in training and technology to ensure it capitalises on these opportunities.”
Employment prospects for the sector remain firm as the industry gets to grips with meeting rapidly rising demands from a historically low base. Across Scotland a net balance of 52% of respondents expect employment to rise over the next 12 months. Teamed with 58% of chartered surveyors predicting an increase in workloads during the next year, the recovery of the construction sector looks set to continue.