A net balance of -14% of surveyor respondents reported a fall in construction workloads in Scotland in the most recent quarter, the lowest balance when compared to other UK regions. This follows a period of three consecutive quarters where this balance was broadly flat.

Looking at the subsectors, activity in all bar ‘other public works’, which was noted to have been broadly flat, were reported to have declined. The workload balances for these were (-7%), private housing (-20%), private commercial (-17%), private industrials (-21%) and infrastructure (-3%). These balances were all lower than reported in Q1.

Looking ahead, a net balance of 5% of Scottish respondents expect workloads to rise over the next year, but whilst remaining in positive territory, it is down from the 19% seen in Q1, and the lowest this balance has been in over a year.

And Scottish surveyors are more cautious on the outlook for profit margins. A net balance of -12% of respondents anticipate profit margins will fall over the next year, down from -6% seen in the previous quarter.

Despite lower workloads for the construction sector, surveyors in Scotland continue to report shortages of skilled workers, albeit at a slightly lesser rate than seen in Q1.

50% of survey respondents noted a shortage in quantity surveyors, down from 56% in the last survey, 37% reported a shortage in bricklayers, down from 42%, and 38% noted a shortage in other construction professionals which was similar to the result in the previous survey.

Survey respondent Colin Brodie of The Rennie Partnership in Falkirk commented that there is a lack of Scottish Government and Local Authority investment.

Brian Minnis of North Lanarkshire Council in Motherwell reports that there are concerns over US and global tariffs and subsequent impacts on material prices as a result.

Commenting on the UK picture, RICS chief economist, Simon Rubinsohn, said: “The underlying tone in the construction sector remains subdued according to the latest feedback from RICS members. There is a little more positivity looking forward but the indicators, at this point, are consistent with a modest rather than material uplift in development.

“Given that planning continues to be viewed as the major factor hindering the industry from upscaling its building programme, it is quite conceivable that the passing of the Planning and Infrastructure Bill will in due course see industry expectations move onto a firmer footing. That said, the need to ensure the building safety regime works more smoothly is also highlighted quite widely in the survey as a factor that would likely impact the pace of development.

“The other big challenge remains around skills. While typically much of the conversation is focused of shortages of trades such as bricklayers and plumbers, the RICS survey highlights recruitment issues amongst professionals involved in the construction industry with building control surveyors and quantity surveyors in short supply.”