A net balance of -3% of respondents in Scotland reported a fall in workloads which is broadly consistent with a flat picture. 

Looking at the subsectors, workloads in both infrastructure and private industrial rose, but only marginally so (net balances of 5% and 4% respectively). Aside from workloads in private commercial which fell flat, the net balances of the rest of the subsectors were all in negative territory: public housing (-22%), private housing (-4%), and other public works (-15%). 

Although workloads overall remain subdued, surveyors are now optimistic on the 12-month horizon. A net balance of 23% of Scottish respondents expect workloads to rise over the next year, which is above the UK average which sits at 20%. Indeed, alongside London and the South East, it is the most optimistic of all the UK regions.

Scottish surveyors are also more optimistic on the outlook for profit margins. A net balance of 13% of Scottish respondents anticipate profit margins to rise through 2025. This is the first time since mid-2021 that this balance has been in positive territory.

Surveyors in Scotland continue to report shortages in skilled workers, however less so than seen previously. 49% of survey respondents noted a shortage in quantity surveyors, down from 57% in the last survey. 38% noted a shortage in other construction professionals, down from 48% the quarter previous, and 35% reported a shortage in bricklayers, down from 45% in Q2 and the lowest this figure has been since early 2021.

Survey respondent Andrew McLeman of McLeman QS Network Ltd in Edinburgh said: “Demand remains fairly static. Work is still coming in but not at a high volume.”

Alan Thomson of McGowan Miller Construction Consultants in Dumfries commented: “We are getting a lot of enquiries for budget costs for potential projects but very few of these are progressing to design/construction stage.”

Jonathan Howarth of Jon Howarth Chartered Surveyor in Portree added: “Issues include materials delivery from some suppliers to remote areas and limited availability of subcontractor accommodation in tourist locations.”

Commenting on the UK picture, RICS chief economist, Simon Rubinsohn, commented: “Although the overall tone of the latest RICS Construction Monitor is a little subdued, the more positive assessment of the outlook foreshadowed, at least in part, some of announcement’s the Chancellor made in her recent speech.

“That said, respondents to the survey continue to highlight just how important it is to follow through on the plans to address some of the barriers presented by the current planning regime. Moreover, contributors also once again raise the issue of capacity when it comes to delivering on the ambitious goals of the government. Labour shortages continue identified as a meaningful obstacle to getting Britain building.”