Scotland’s construction sector is stuck in a “state of limbo” because of political and constitutional uncertainties, according to an industry leader.
The claim was made by Scottish Building Federation (SBF) managing director Vaughan Hart, as results of the organisation’s latest survey of confidence levels among building companies were published.
They show overall confidence in the sector to be “marginally positive” for the third quarter in a row, having slumped at the end of June, immediately after the UK referendum vote to leave the EU.
Of firms questioned, 40% said they were unsure what impact Brexit would have on their business and 33% predicted it would have a negative impact on the sector in Scotland.
Mr Hart said: “Looking at this latest set of results, there is a real sense that the industry remains stuck in a state of limbo just now. The recent economic signs have been positive with strong output and rising employment within the Scottish construction sector.
“At the same time, ongoing uncertainty on the political and constitutional fronts is making industry employers feel quite nervous about the future outlook.”
Mr Hart added: “In terms of future trends, most building employers judge that prioritising additional public investment, particularly towards housing, would bring the greatest benefit to the industry and to their businesses.
“Conversely, a general fragmentation within the industry and a growing trend towards self-employment poses the greatest threat to future industry prospects. Moves away from direct employment towards project management companies that outsource their labour is also viewed as a negative development that will hamper sustainable industry growth in the future.”