SCOTLAND'S construction industry looks set for some challenging times ahead. The credit crunch and a slowdown in contracts for major infrastructure are squeezing an industry that has literally been the foundation of economic growth in recent years.
No other industry, with the possible exception of the retail sector, acts as a better barometer of business confidence than ours. Figures published last week by the Scottish Building Federation (SBF) show that 60 per cent of construction firms are
slightly or much less confident in the economic prospects facing their business over the next 12 months, compared to the previous 12 months. Only 7 per cent report that they are slightly or much more confident.
The results come from the quarterly SBF Scottish Construction Monitor and will appear as no surprise to people in the sector. Recent headlines paint a picture of an industry facing a turbulent year. However, the reality suggests that planning delays, difficulties with utilities and the skills gap are having as much impact on productivity as any economic factors. That does not hide the fact that in certain areas some companies are still coming to terms with a wider downturn.
Despite the gloom, construction firms are still in great demand. Major projects like the Forth Road Bridge and the M74, not to mention the 2014 Commonwealth Games, remain in the pipeline or under way, and there are still many reasons to be optimistic. The challenge for us is to plan for the future while responding to the current economic climate. Tackling the structural problems that bedevil our sector and that remain despite the boom of recent years will be crucial, and we can start by addressing the skills gap.
Apprenticeships will re-enter the political spotlight next week when the consultation closes on John Park MSP's Apprenticeship (Scotland) Bill and a major conference is held at Dynamic Earth in Edinburgh. This will look in detail at the opportunities apprenticeships create for both young people and industry.
For my part, John Park's bill and the conference provide an opportunity for the industry to scotch a few myths. I will be looking to set out a pragmatic case for investing in apprenticeships to enable Scotland to achieve sustainable economic growth. One myth is the idea that construction employers stopped offering apprenticeships in recent decades. The reality is that the Scottish Building Apprenticeship and Training Council has been registering new apprentices every year since 1934. Last year, we registered over 2,800 apprentices and overall the Scottish construction industry recruited over 4,000 apprentices.
No other industry can point to a similar track record of investing in young people and adults looking for a career change or an upskilling opportunity. John Park's proposal to give every suitably qualified young person the right to an apprenticeship is a principle we can support. Glasgow is already showing the way with its commitment to achieve this by next summer.
Apprenticeships remain the best way to meet our skills requirements. There is no quick and easy solution to skills training. It requires significant investment of time and money from the employer, as well as commitment from the apprentice. While training programmes have a role to play, a four-year apprenticeship remains the gold standard. That is why businesses need to be confident there will be sufficient work over this period.
The Scottish Government should lighten the burden for employers by sending a signal of intent by listening to those who have an established track record in apprenticeship training. They can start by green-lighting new infrastructure projects and supporting the right to an apprenticeship. They should also set a new ambition for Scotland to become the highest skilled country in Europe. If the construction industry can continue to play its part during these uncertain times, then I hope others will do the same. Leadership at all levels of government and industry will determine our success.
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