As we approach the end of the year, I have reflected on what the key issues have been for FMB members across Scotland. The sources being from the many conversations I’ve held with members: whether on-site or at our FMB Scotland Board meetings. Our quarterly state of trade surveys also provide insights into the views of local building contractors.

So what were the Big Four in 2024?

Labour and Skills

I think you could pull out any year over the last 3+ decades and labour and skills would be right up there as a key issue. Be this on the quantity of skilled tradespeople needed or the quality of construction training provision. This year we know the big numbers from a range of sources: from the CITB’s Construction Skills Network forecasts to Skills Development Scotland’s sectoral assessment for construction.

Both point out that extra workers are needed for Scotland’s construction industry now and over the next 5 to 10 years.  Time and again the age-old challenge of bringing more young people into the trades comes up when FMB members discuss workforce matters. Now, if I could have a pound for every time this did! 

Now a fresh challenge was thrust at building companies in October: the UK budget. The increased rate on employers’ national insurance has angered many FMB members. Quite how this (and the increases to the National Minimum Wage and National Living Wage rates) will impact their recruitment plans in 2025 remains to be seen. Can business confidence mitigate the impact of these measures?

Workloads

On the whole, our members have reported healthy workloads in 2024. Our housebuilder members have had a tougher year than those who exclusively deliver RMI works (Repair, Maintenance and Improvement). Looking at the results from across all four nations of the UK in the FMB’s Q3 State of Trade Survey, it is Scotland that comes out on top. On our two key measures of overall workload for builders and enquiries for new works, Scotland bucks a rather dispiriting trend seen in the other nations.

It isn’t all good news though, with squeezes on public finances, there are concerns about the pipeline of works from public sector contracting authorities into and beyond 2025. As any builder knows, it is one thing having the work, it is another thing getting paid for it on time.

Payments and cashflow

It’s not just our smallest members who exclusively deliver RMI works for residential clients that are vulnerable to bad practice on payment behaviour. This year I have had too many private conversations with medium sized contractors who work for public sector and commercial clients where payment malpractice has come up.

The consequences as we know can and do lead to liquidations and livelihoods lost. I was saddened that one of our longstanding members the Hadden Group went into administration this year. Whilst for many members, there have been healthy workloads this year, the thin margins the building industry operates on mean many are vulnerable when payment disputes become protracted.

Licensing and Standards

Reports from my colleagues in London are that the new UK government has a more accommodating attitude to the FMB’s licence to build campaign. Now whether or not you think that all or some of our industry needs a licensing scheme (over 80% of FMB members do) there is consistency on the importance of construction quality and standards.

This year the impact of the Building Safety Act south of the border, plus the recommendations from the Grenfell Phase 2 Report have elevated matters around competence, compliance and licensing. There was a healthy discussion around licensing construction in the Scottish Parliament in November. 2024 has also seen the introduction of a new role, the Compliance Plan Manager (CPM) for High Risk Buildings in Scotland. 

As ever, I’ll be working to support our members as we approach 2025. I’m also expecting many to join me in celebrating their achievements at our Master Builder Awards. It is so important for our hard-working local building firms to receive the recognition they deserve. Our Scotland Awards ceremony on 6 June 2025 promises to shine a spotlight on our unsung heroes of the construction industry!