Small and medium-sized construction firms in Scotland are “in deep trouble” as confidence in the sector collapses, a new report has shown.
THE construction sector in Scotland has suffered a sharp decline in conditions in the third quarter of 2010, according a survey by trade body, the Federation of Master Builders (FMB).
The State of Trade Survey, which focuses on small and medium-sized enterprises (SMEs), found that only 13 per cent of companies reported an improvement in workload, expected workload and enquiries compared to 27 per cent in the previous quarter. Firms in Scotland were worse off than their counterparts in England - 38 per cent reported that conditions had worsened, bringing the net balance for Scotland below the UK average.
Grahame Barn, director of FMB Scotland said: “These results show that the SME construction sector in Scotland remains in deep trouble. We welcome the Scottish Government’s plans to support the refurbishment and house building sectors through its sustainable housing strategy, but more urgent action is required to arrest the decline in the Scottish construction sector in the immediate term.
Barn continued: “There must be a commitment to delay any additional regulatory burdens on the house building sector, which add significantly to the cost of building each new housing unit. The timetable for introducing zero carbon homes in Scotland goes beyond the requirements of the EU’s Energy Performance of Buildings Directive and we would urge ministers to think very carefully about the economic impact of increased regulation.”
Barn concluded: “When it comes to existing homes, the Scottish Government’s pledge to invest in improving their energy performance is welcome. However, small businesses must be able to deliver this work to help reap bigger rewards for the Scottish economy. The Scottish Government must also help owner occupiers understand the financial as well as the environmental benefits of energy saving refurbishment work.”