NEARLY half of employers in the Scottish construction industry expect to employ more people over the next 12 months.

However, around the same number say they are uncertain about the impact Brexit will have on their business and what effect it will have on the wider industry, with a third expecting it to have a negative effect. Only nine per cent think leaving the EU will have a positive effect.

Over half predict that fragmentation and a trend towards more self-employment within the industry will have a negative impact on their business, while 59 per cent fear that the growth of project management companies and a trend towards outsourcing labour rather than providing direct employment will have a negative impact on the industry overall.

Around 67 per cent of those surveyed say an increase in public funding for housing would have a positive impact on the industry as a whole. The survey by the Scottish Building Federation found that employer confidence in the industry had recovered slightly after a drastic slump immediately following the Brexit vote, and was remaining steady for the third consecutive quarter.

Nearly half (43 per cent) employed more people over the last 12 months compared with 20 per cent who reported a decline. The remaining 37 per cent saw no change. A total of 41 per cent expected the size of their workforce to increase over the next 12 months, while 14 per cent thought they would have to reduce that number, and 43 per cent expected employment within their businesses to remain stable.

“Looking at this latest set of results, there is a real sense that the industry remains stuck in a state of limbo just now,” said Scottish Building Federation managing director Vaughan Hart. “The recent economic signs have been positive with strong output and rising employment within the Scottish construction sector.

“At the same time, ongoing uncertainty on the political and constitutional fronts is making industry employers feel quite nervous about the future. Most building employers judge that prioritising additional public investment, particularly towards housing, would bring the greatest benefit to the industry.”