SCOTTISH small to medium-sized construction companies remained resilient in the third quarter of 2019 despite continued uncertainty around Brexit and a potential second independence referendum, according to the Federation of Master Builders (FMB) Scotland.
Key results from the FMB’s latest State of Trade Survey for Q3 2019 show that Scottish construction small to medium-sized companies’ (SME) workloads remained positive in Q3 2019 but fell slightly in the previous quarter; Carpenters overtake bricklayers as the trade in shortest supply with over half (56%) of construction SMEs struggling to hire carpenters and joiners and 54% struggling to hire bricklayers; 86% of builders anticipate that material prices will rise further in the next six months, slightly up from 77% in Q2 2019; and 56% of SME construction companies expect higher salaries and wages over the next 6 months, up from 51% in the previous quarter.
Gordon Nelson, FMB Scotland Director, said: “Scottish SME construction companies have remained remarkably resilient despite ongoing political and economic uncertainty and skyrocketing material prices.”
Nelson continued: “However, the costs Scottish builders are facing are escalating. Rising material costs have been a thorn in the side of many construction SMEs over the last few years and these are set to rise with 86% of builders predicting material price rises over the next 6 months. Brexit uncertainty hasn’t helped with this, as approximately 60% of the UK’s building material imports come from the EU - with a particular reliance in Scotland on imported timber for housebuilding.”
Nelson concluded: “Skill shortages also continue to thwart the growth ambitions of many Scottish SMEs. Over half of SME construction companies are struggling to find sufficiently skilled carpenters and bricklayers.”
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