Slower Growth Expected In Construction Sector

Scotland's construction industry is expected to grow at a slower rate than the rest of the UK over the next five years, it has been claimed.

According to the latest forecast by Construction Industry Training Board (CITB), Scotland will see a 1.1% in growth over the next five years, following the completion of significant projects associated with the redevelopment of the M8 and the Commonwealth Games, for example. The report stated: "Large projects such as the Queensferry Crossing, Borders Railway and M8/M74/M73 improvements are all due to complete during the forecast period and, while there are new schemes on the blocks, they are unlikely to compensate in full for those leaving the pipeline."


Despite the 1.1% growth in Scotland's construction industry, it is down from 2% – and falls below the UK average of 2.9%. However, the Construction Skills Network (CSN) report added that infrastructure investment remains at "historic levels".

Over the next five years, growth is expected to be strongest in the private housing sector, with an average annual growth rate of 5.4%.

Ed Monaghan, chairman of CITB Scotland's advisory committee, is quoted as saying: "The overall market sentiment is that construction generally has turned the corner, with many businesses reporting improved order books and housebuilders enjoying a more active market. All of this has put pressure on the supply chain, in particular skilled labour."

(JP/CD)