Scottish Construction Industry Confidence Hits Record Levels

Confidence in the construction industry is at its highest level in at least seven years, the Scottish Building Federation has found.

The Scottish Construction Monitor survey has hit a new record peak of industry confidence since it began in 2008, with a supply of new work and training grants available for new apprentices.

It is the eighth consecutive quarter that Scottish building employers' confidence has been rated positive overall.

Employers responding to the survey are asked how confident they feel about their company's prospects over the next 12 months compared to the previous year.

Scottish Building Federation managing director Vaughan Hart said: "It's encouraging that employers' confidence about their future prospects is continuing to rise.

"The results are particularly striking against the backdrop of recent reports that overall business confidence in Scotland has declined due to falling profits.

"In construction, there can be no doubt that margins remain very tight but there is at least a supply of new work out there now, which certainly wasn't the case two years ago.

"As we've said before, certain sectors of the industry are faring better than others and we're concerned that industry employment is lagging significantly behind output.

"I'm encouraged that employers view apprenticeships as a top priority for future investment from the industry levy.

"Hopefully, this finding will add strength to CITB's arm in prioritising apprenticeship funding as it reviews the future training needs of the industry.''

Small business confidence is also growing but there is a worry about the availability of staff, according to the Federation of Small Businesses.

The falling price of fuel and utilities eased cost pressures on small firms, which have reported increased revenues, profits and growing wages.

Andy Willox, FSB Scottish policy convenor, said: "Scottish small business confidence is picking up but remains behind the level recorded a year ago.

"And, while the long term trend looks good, decision-makers need to reinforce their links with local small enterprise if they really want to understand how their community, local economy and the country, ticks.''

About one in three businesses reported that staff skills were a potential barrier to the growth of their business, FSB said.

Mr Willox added: "It is alarming that one in three Scottish small firms report that a shortage of skills could be a potential barrier to growth when there are still 163,000 Scots unemployed.

"New forums, designed to develop better links between industry and education, are a welcome initiative but they can't be the end of the story. Extra effort must be applied to tap the potential of the smallest businesses.

"Small firms especially value soft skills: we're often looking for people with the right attitude, not just the right certificates. We need people who can manage their own time and work comfortably with customers and colleagues.

"Educators alone can't solve this problem - the business community has a big role getting young people ready for the world of work.''