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Construction activity in Scotland – June 2019

July 2019

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      Scotland has seen the most activity construction contract awards in June 2019 in both the medical & health and education sectors, compared to the rest of the UK.

      Our economic and construction market review outlines the construction activity levels throughout the UK. With a sector breakdown including a table of the top projects, we can report on current trends and developments.

      Scotland construction sector activity

      Within the medical & health sector, total contract awards were valued at £69 million. Scotland was account for a share of 31.1% of all contract awards. Comparing this figure to June 2018, Scotland held just a 4.5% share a year ago. Badenoch and Strathspey Community Hospital was the largest contract award for the region in June and was valued at £15 million.

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      In June, the value of the education sector contract awards was £388 million based on a three-month rolling average. Scotland was the largest region for education contract awards in June with a share of 25.8%. In June 2018, Scotland’s share of contract awards was just 3.9%. The largest education award in Scotland in June, was the Maybole Community Campus at the Carrick Academy Site in Kirkoswald Road, valued at £42 million.

      Tom Hall, our chief economist commented on the figures:

      “June’s figures indicate a large increase in investment in these areas for Scotland in 2019 compared to 2018. This demonstrates the Scottish Government’s £1.8 billion “Schools for the Future” campaign is having an impact north of the border. While Scotland is showing significant growth in some sectors, we have recently seen a decline in contract awards in several sectors across the UK. For example, in the three months ending June 2019, total medical & healthcare sector contract awards were valued at just £371 million. This is 14.1% lower than the previous quarter, and 37.6% lower than for the comparable quarter ending June 2018.”

      Summary

      To conclude, Scotland’s increased activity in the medical & health and education sectors has shown their investment plans come to life. This may indicate a trend that will continue into the near future. However, it’s interesting to know that both sectors have seen a decline in activity generally across the UK.

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