City Building 027A major new study by influential think tank the Fraser of Allander Institute has outlined the scale of City Building’s contribution to the Glasgow economy.

The report, which is published this week to celebrate the 10th anniversary of the arm’s length contractor being established by Glasgow City Council, reveals that City Building supports a turnover of nearly £325 million across companies in the city.

The study confirms that City Building directly employs 2,253 staff – nine out of 10 of whom live in Glasgow – and supports a total of 3,877 jobs across the city. In addition, the £63m paid in salaries to City Building’s staff supports a total of £108.5m worth of wages in Glasgow.

According to the analysis, for every two jobs that City Building provides a further 1.44 jobs are created and for every pound paid in wages to City Building employees an additional 71p in wages are generated across the city.

Amongst other key findings are that one in eight construction jobs in Glasgow is provided by City Building and that the company accounts for almost 1 per cent of all jobs in Glasgow; directly employing one in every 120 people in the Glasgow workforce.

The report also examined the wider impact of the company’s socially responsible training and employment practices, community work and charity activities on Glasgow. Key findings include:

  • City Building has provided a total of 1,102 apprenticeships since 2007, with 94 per cent of apprentices completing their training compared with an industry average of 75 per cent
  • 70 per cent of the company’s time-served served apprentices found permanent work at City Building
  • Almost three fifths (58.9 per cent) of City Building employees are either qualified or working towards a qualification
  • City Building estimates that 73.5 per cent of supplier spending is placed with companies based in Glasgow
  • City Building employees contributed voluntary work worth an estimated £2 million in Glasgow in 2015

More than half of the 260 staff employed by Royal Strathclyde Blindcraft Industries (RSBi), City Building’s manufacturing division, has a disability.

The report was carried out by Stewart Dunlop, research fellow at the Fraser of Allander Institute, who said: “The key findings of this study are estimates of City Building’s economic and social impact on Glasgow.

“The results demonstrate that the company’s activity has a very considerable effect on employment opportunities in Glasgow, by creating jobs for a diverse range of people and providing the skills and training required to achieve economic growth in the construction sector.”

In February, the company agreed a 50/50 joint venture with the Wheatley Group, which will deliver £2.7 billion of new work. City Building estimates the deal will secure 2,000 jobs and 2,000 apprenticeships in the Glasgow area.

Cllr Frank McAveety, leader of Glasgow City Council, said: “City Building makes a huge contribution to the council’s priorities – and the incredible work it has done to provide apprenticeships for young Glaswegians and supported employment for people with disabilities speaks for itself.

“What this new report from the Fraser of Allander Institute spells out is just how valuable this great business and its socially-inclusive approach to training and employment has become to the entire city.

“That’s something everyone at City Building can be very proud of – and something I expect to see go from strength-to-strength under the new partnership with the Wheatley Group.”