New official figures from the Office for National Statistics, issued today (10th March), show the Scottish construction industry generated total output of £14.5 billion last year, a modest decline on record output of £14.7 billion during 2015.
Output from the housing, private commercial and repair and maintenance sectors of the industry were all up year-on-year. But output from the infrastructure sector of the industry declined from a record high of £4.2 billion during 2015 to £3.1 billion in 2016.
Commenting on the figures, Scottish Building Federation Managing Director Vaughan Hart said:
“There has been encouragingly strong performance from the housing, private commercial and repair and maintenance sectors of the Scottish construction industry last year. Output from the housing sector rose by 16%, largely driven by an increase in private housebuilding. The private commercial sector was also strong, rising 6% to more than £2.6 billion, the highest it’s been since 2008. We’ve also seen good output in repair and maintenance, rising 5% to more than £4.1 billion. On the other side of the equation, infrastructure output has dropped significantly and private industrial activity is at a new low, partly prompted by the removal of empty property rates relief which is a policy we have consistently campaigned against.”
Vaughan Hart concluded:
“Overall, these are encouraging results which suggest that the industry is moving in the right direction in terms of achieving a balanced recovery across different sectors, hopefully with a reduced reliance on major infrastructure projects to drive future growth as other key sectors such as housing, commercial and repair and maintenance continue to show strengthening performance. We will be watching closely to see if this momentum continues into 2017. However, that is obviously very much dependent on how the wider economy performs and there is still a good deal of uncertainty about future economic prospects just now.”
- New output figures for the UK construction industry, including updated output figures for the Scottish construction sector for the final quarter of 2016, were published today (10th March 2017) by the Office for National Statistics: https://www.ons.gov.uk/businessindustryandtrade/constructionindustry/datasets/outputintheconstructionindustry
- Founded in 1895, the Scottish Building Federation (SBF) is the lead voice of the construction industry in Scotland, an industry which is the largest source of private investment north of the border and contributes around £10 billion (c.10%) to Scotland’s GDP. The overall aim of the organisation is to ensure that the important contribution of the Scottish construction industry to Scotland’s economy and society is recognised and valued, which it does through working with industry, government and the media, and that industry standards are raised.
- The SBF promotes the interests of the construction industry to a diverse range of stakeholders and is the leading employers’ federation for the industry, representing hundreds of individual companies from Orkney to the Borders.
- The SBF provides an exclusive range of invaluable support services to a wide range of member companies, whether these are small single trade firms or major regional and national contractors. The shared objective that all members have in common is their commitment to health and safety, skills and integrity, ensuring the delivery of the highest standards of performance, professionalism and quality within the industry in Scotland.