ao link
Twitter
Facebook
Linked In
Twitter
Facebook
Linked In

You are viewing 1 of your 1 free articles

Brexit concerns trigger declining confidence in Scottish construction sector

Scottish builders are increasingly concerned that the impact of Brexit will result in higher labour costs, according to the latest survey of industry confidence.

Linked InTwitterFacebookeCard
Picture: Getty
Picture: Getty
Sharelines

Brexit concerns trigger declining confidence in Scottish construction sector #ukhousing

More than half of the builders that responded to the Scottish Construction Monitor survey (57%) said they were concerned that leaving the EU would drive up the cost of their workforce. A further 26% predicted there would be no impact, with 14% unsure.

The Construction Industry Training Board had previously found that 8% of the UK’s construction workforce was made up of people from other EU member states. In Scotland, this figure was 4%, or the equivalent of 7,300 people.

Vaughan Hart, managing director at the Scottish Building Federation, said: “One key impact of the Brexit process for Scottish construction employers will certainly be the availability of skills and labour from other EU member states – and related to this, future labour costs. With only around 4% of the workforce coming from other EU member states, the Scottish industry is less directly exposed to this impact than other regions of the UK, particularly London, where around half of the local construction workforce is made up of non-UK EU nationals.


READ MORE

A year to go and the Brexit clock is ticking for procurement teamsA year to go and the Brexit clock is ticking for procurement teams
Brexit will be difficult, but it will also give us a stimulus to be innovativeBrexit will be difficult, but it will also give us a stimulus to be innovative

“However, the indirect impact on labour costs within the Scottish industry could be much more considerable. An exodus of EU nationals from London’s construction sector could be a significant drain on the availability of labour and skills here in Scotland, as more Scottish workers relocate to take advantage of job opportunities down south.

“In that context, I think our members are rightly concerned that the Brexit process could drive up labour costs for them over the next five years. Combined with declining industry output across the UK, it’s therefore also unsurprising that general confidence amongst employers about the future outlook for the industry remains weak.”

Overall, construction firm bosses in Scotland said they had less confidence in the prospects of their businesses for the next 12 months compared with a year ago.

The Scottish Construction Monitor recorded overall confidence in the sector as minus six on its index, compared to minus three when the survey was last carried out three months ago. The index is worked out by asking each survey respondent whether they are more or less confident than a year ago and by how much, before taking an average score across the sector.

Linked InTwitterFacebookeCard
Add New Comment
You must be logged in to comment.