Latest data from the Office for National Statistics show a new record output from the Scottish construction industry over the 12 months to September 2015, rising to more than £14bn.
This compares to a previous record output of more than £13 billion over the 12 months to June 2015.
But according to Scottish Building Federation managing director Vaughan Hart, this might not be an entirely good thing.
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 & 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.â€
He continued: “Unfortunately, growth is not balanced across different sectors of the Scottish construction industry. As an overall percentage of Scottish construction industry output, infrastructure has risen from around £1.5bn or 13% of total industry output over the 12 months to September 2008 to almost £4bn or 28% over the 12 months to September 2015.
“As a comparison, new housing was worth around £2.5bn or 22% of total industry output in 2008 but is now worth £2.2bn or 16% of total industry output. Private commercial activity has also declined over that period from £3.1bn or 26% of total output seven years ago to £2.4bn or 17% today.
“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.â€
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