By Ian McConnell

SCOTTISH construction companies are “generally positive” about the prospects for turnover and employment on a six-month view, a report published yesterday shows.

Meanwhile, six per cent of businesses in the Scottish construction sector considered it unlikely they would survive over the next six months, with 82% reporting that it was somewhat or very likely they would survive, according to the survey published yesterday by law firm Addleshaw Goddard.

On average, Scottish construction firms expect to operate at between 76% and 99% of normal capacity in coming months. And only one-tenth of businesses in the sector anticipate they will be operating at below 50% of normal capacity, according to the survey, produced in partnership with the University of Strathclyde’s Fraser of Allander Institute.

Meanwhile, 74% of construction business reported their cashflow positions were secure or very secure. Slightly more than one in five reported that their cashflow positions were insecure.

Anne Struckmeier, construction and engineering partner at Addleshaw Goddard, said: “Scotland’s construction sector has endured a turbulent 12 months as a result of the Covid-19 pandemic which forced the Scottish Government to request the complete closure of the vast majority of construction sites throughout the first lockdown. This had a detrimental impact on the industry nationwide but, collectively, the sector is now in a strong position to deliver a more modernised and sustainable approach. This is helped by the Scottish Government’s post-pandemic growth roadmap, which is focused on investing in retrofitting existing stock in the built environment.”

She added: “Appetite from private and public sector clients tendering new projects is heavily geared towards supporting the push to meet national net zero targets.This presents a golden opportunity.”