NEW research has found ‘cautious optimism’ for Scotland’s construction sector.
The latest market intelligence report from construction and property management consultant, Rider Levett Bucknall UK (RLB), found that sector-specific advancements are being tempered by economic and policy-related challenges. A revised Q2 tender price forecast of 3% reflects a ‘circumspect but steady’ outlook.
While the industry shows signs of recovery, RLB said factors such as economic uncertainty, labour shortages and inflationary pressures continue to influence growth. The housing sector continues to drive the market, as well as repair and maintenance, which saw an 8% rise last year. Major projects such as the A9 dualling have seen investment in infrastructure, while the private commercial sector is forecast to grow by 1.5%, driven by refurbishment projects.
Macro-economic events, including the US imposition and relaxation of tariffs, have dampened investment confidence, with knock-on effects in UK construction. However, with markets looking like being on the way back to the highs of the turn of the year and expanding data centre growth, there is cautious optimism ahead of the spending review on 11 June.
In a tight labour market with low levels of unemployment and ongoing worker shortages, RLB added that new workload distribution and local availability of labour could hold the key to whether any influx of project work could result in tender price breakout.
Martin McConnell, partner at RLB Scotland, said, “The Scottish market continues to be complex with signs of recovery and growth in sectors like housing and infrastructure, but challenges like labour shortages and economic uncertainty.”
For RLB’s full Construction Market Intelligence Q2 2025, visit https://www.rlbinsights.com/publications/construction-market-intelligence-cmi-q2-2025/
