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SME Construction Sector Declines for Third Year as FMB Scotland Launches Recovery Plan

Wednesday 20th April 2011 – FOR IMMEDIATE RELEASE

 

Small building companies in Scotland suffered another decline in conditions during the first quarter of 2011, according to the latest State of Trade Survey from the Federation of Master Builders (FMB), the largest trade association in the UK construction industry.

 

The quarter one  2011 results for the FMB’s State of Trade Survey, the only survey of small and medium sized building companies, show that the Scottish small and medium sized enterprises (SME) construction sector has now seen three years of declining conditions.

 

Grahame Barn, Director of FMB Scotland, said:

“Although conditions are not as bad as they were in the final quarter of last year, they are still heavily negative suggesting that small building companies in Scotland are continuing to struggle. What is concerning is that the results suggest that the rate of decline in conditions is comparable to 2009.”

 

Barn continued:

“Against the background of the continuing recession in construction FMB Scotland has decided to act by launching our own manifesto to aid the Scottish economic recovery. A key concern for us is the fact that in the lead up to the elections all the major political parties are promising to create large numbers of new apprenticeships without understanding that a  construction craft apprenticeship requires employed status. The simple fact is that no construction craft apprenticeship can be created without a company owner deciding that the workload  justifies the employment of an apprentice. The decision on the number of construction apprenticeships available in any given year is not directly determined by the Government.

 

Barn concluded:
“The only way to create more apprenticeships is to stimulate the economy.  The most effective way to do that is to ensure that SME construction companies have the work and trading conditions to flourish and expand.”

 

Scottish SME Construction Sector Performance

 

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