New figures published today show that output over the 12 months to September this year rose to over £14 billion compared to a previous record output of more than £13bn over the 12 months to June.

Scottish Building Federation managing director, Vaughan Hart, welcomed the figures but warned that the growth is unsustainable as it is largely driven by major infrastructure projects and not balanced across different sectors of the Scottish construction industry.

He said: “Of course, following the recession, the recent impressive growth in construction sector output is great news with output showing a new record high of more than £14bn over the 12 months to September 2015.

“However, these latest output figures reinforce the key finding of the Ernst and Young report published earlier this week: Namely, that the Scottish economy has become overly reliant on major infrastructure projects as the main source of economic growth and that this is not sustainable in the long term.”

As an overall percentage of Scottish construction industry output, infrastructure has risen from around £1.5bn or 13 per cent of total industry output over the 12 months to September 2008 to almost £4bn or 28 per cent over the 12 months to September 2015. As a comparison, new housing was worth around £2.5bn or 22 per cent of total industry output in 2008 but is now worth £2.2bn or 16 per cent of total industry output. Private commercial activity has also declined over that period from £3.1bn or 26 per cent of total output seven years ago to £2.4 billion or 17 per cent today.

Mr Hart added: “Based on this analysis, I have to agree with the assessment that current rates of output growth in the Scottish construction sector are not sustainable and suggest an over-reliance on the infrastructure sector of the industry as the main source of this growth. In making future investment decisions, there needs to be a continued focus on balancing the industry’s performance across different sectors so as to put the industry’s recovery on a more sustainable footing for the longer term.”

Construction firm Cruden said it was encouraged by the growth.

Allan Callaghan, managing director of Cruden Building & Renewals, said: “These latest findings will give the industry something to cheer following the release of negative figures of late. The rise in output will give real positivity to those operating north of the border which has continued to face strong economic headwinds, but which has always come out of the other side in a stronger position.”

He added: “The end of the year is also a time to take stock and review the bigger picture. While figures released will always be used as a marker for the strength of the sector, speaking to those on the ground has always been my preferred review method. And when I do, I gain great confidence that those in the sector have the skills, drive and appetite to innovate and constantly diversity to suit Scotland’s ongoing requirements. This gives me great positivity not only for Cruden, but for the industry in its entirety, as we move into next year and beyond.”