Decline in confidence in Scottish construction triggered by Brexit
57% of builders are concerned that Brexit will increase the cost of their workforce and result in higher costs of labour. This is according to the results of the latest survey by the Scottish Construction Monitor. A previous study by the CITB has shown that in Scotland, 4% of the workforce comprises of EU nationals. This number therefore equates to approximately 7,300 people.
The Scottish Construction Monitor has also recorded confidence in the sector at minus 6. This compares to minus 3 when the survey was carried out in February.
What the experts had to say
Managing Director at the Scottish Building Federation Vaughan Hart said, “One key impact of the Brexit process for Scottish construction employers will certainly be the availability of skills and labour from other EU member states – and related to this, future labour costs.
“With only around 4% of the workforce coming from other EU member states, the Scottish industry is less directly exposed to this impact than other regions of the UK, particularly London, where around half of the local construction workforce is made up on non-UK EU nationals.
“However, the indirect impact on labour costs within the Scottish industry could be much more considerable. An exodus of EU nationals from London’s construction sector could be a significant drain on the availability of labour and skills here in Scotland, as more Scottish workers relocate to take advantage of job opportunities down south.
“In that context, I think our members are rightly concerned that [Brexit] could drive up labour costs for them over the next five years. Combined with declining industry output across the UK, it’s therefore also unsurprising that general confidence amongst employers about the future outlook for the industry remains weak.”
Are you concerned about the impact Brexit will have on the industry? Did you respond to the survey? Let us know in the comments. You can also email us your thoughts!
Join us online: