Scotland's small construction firms are outpacing the rest of the UK, posting the strongest workload growth of any nation in the first half of 2026, according to the latest State of Trade Survey from the Federation of Master Builders (FMB) and the Chartered Institute of Building (CIOB).

The survey shows Scotland recorded a net workload balance of +31%, compared with -4% across the UK and -9% in England. It was also the only nation to see enquiries for new work increase, with a net balance of +9% against a UK-wide drop to -10%.

However, escalating costs and shortages of skilled trades are constraining firms' ability to capitalise on demand. Across the UK, 75% of builders reported higher material prices, 68% faced skills shortages and 47% were forced to delay projects as a result.

Builders are also turning to technology to stay competitive. More than half (57%) of companies said they had increased their use of AI, primarily to support admin tasks, prepare quotes and compile tenders.

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Gordon Nelson, Director of FMB Scotland, said: "Scotland's builders are bucking the trend. While firms elsewhere in the UK saw work dry up, Scottish small building companies remained busy with enquiries for new work boosting their pipeline into 2027. But busy does not mean easy. Material costs are still climbing and fuel surcharges are squeezing what are already wafer-thin profit margins. This means that the bosses of local building firms simply don't have the headroom to recruit and train the new skilled tradespeople which they desperately need to meet demand. We need to back our builders with increased funding and support for small firms to employ young people across the trades."

Pam Wilson, FMB Scotland President and Managing Director of Kevin Wilson Master Builders, said: "We've had a busy year, with homeowners across Scotland getting on with extensions, renovations and repairs. Our diary is already full well into next year, which is great, but being busy doesn't mean it's easy. From timber to fuel, the cost of delivering a job keeps going up and that puts real pressure on small businesses like ours.

"As a family business, we've just taken on a new apprentice and I'm really proud of that. Giving a young person a start and watching them build their skills is one of the best parts of what we do. But it takes time, money and proper support to train someone well. If the Government wants Scotland's builders to keep delivering, it needs to make taking on and training apprentices more affordable. We're willing to invest in the next generation. We need that commitment matched."