Construction Sector:
Future Trends
Growth in the Scottish construction industry will continue to be driven by its 10-year transport investment plan, worth around £3bn. The M74 completion project will continue to provide work until 2011, as will the Glasgow Airport Rail Link, due to start in earnest in 2009. However, the biggest project now in the pipeline is the Forth Replacement Crossing, a five year project starting in 2011 with an estimated cost of between £1.7bn and £2.3bn.
The Scottish government is currently going through a consultation process on how investment in affordable housing can be used most efficiently to maximise the supply of new affordable homes. This consultation is due to complete in April 2010 when lead developers will be identified for 2010-2015 and subsidies awarded for 2010 to 2012. Thus the expectation is that the social housing market will grow over most of the forecast period. Public non-housing output is predicted to continue to fall from its very high peak in 2006, as most schools’ construction work in Scotland is currently funded through the Public-Private Partnership route and thus output will appear in the commercial sector. However, there is some £530m of college projects due to start by 2010, the largest of which is the £300m Glasgow College development.
The private housing market is expected to be over the worst conditions by 2010, although the steep fall in output for 2009 means that the average annual growth rate for 2009-2013 is negative.
In May 2008 a new system was set up to act as a catalyst for investment in the building of schools, hospitals and other public sector projects called the Scottish Future’s Trust(SFT). The SFT will advise government on major public sector expenditure and it is hoped will bring a consistent flow of work to the industry. The next generation of public housing, hospitals, schools and infrastructure is pivotal to retain vital resources in the industry especially at times when other areas of work are reducing
According to the EIC(Environmental Industries Commission) there may be positive consequences to following in the green footsteps of President Obama. They believe there is an opportunity to lead the world in environmental technologies or millions of jobs that could have been created in the UK could go elsewhere. These comments could be particularly relevant to the Scottish Construction industry where both off shore and onshore wind farms play a major role.
For further information on trends in the construction industry:
http://www.scottish-building.co.uk/pages/
http://news.careerstructure.com/
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