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02/02/2017

Construction Workloads Increase In Scotland

Construction workloads in the UK have now started to bounce back after a period of decline following the EU referendum.

According to the latest Royal Institution of Chartered Surveyors (RICS) Construction Market Survey, workloads expectations rose to a reading of 57%, up from 49% and 23% in Q3 and Q2 respectively.

In addition, employment expectations also improved (41%), with output increasing in most sub sectors except public non-housing. The strongest rise was reported in the private housing sector, with 27% more respondents citing an increase. A rise in workloads was also reported in the private commercial and infrastructure sectors.

Workloads expectations in Scotland also rose to 27%, while 7% more respondents reported an increase in total workloads.

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However, while the data is broadly positive, anecdotal evidence by chartered surveyors suggests uncertainty surrounding the departure from the EU to be dampening investment and activity.

Over the next 12 months, respondents are predicting both the road and rail sub categories of infrastructure to post significant increases in construction output, as well as growth in road construction activity.

However, skills shortages continue to hold back growth in the industry, with 66% of respondents highlighting a gap in quantity surveyors, the highest figure since 2008.

RICS Chief Economist, Simon Rubinsohn, said: "The latest results suggest that the construction sector has shrugged off concerns about the effect of Brexit with key workload indicators remaining firm around the country. Indeed, feedback regarding the outlook over the next twelve months is now rosier than it was back in the autumn with more building anticipated as 2017 unfolds.

"That said, there remains some unease about access to skilled labour in the emerging new world and financial constraints still remain a major challenge for many businesses. And significantly, we are being told that a shortage of quantity surveyors is impacting on the development process at the present time."

(LM)

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