THE construction industry is the bedrock of Scotland's economy. Whether it is building new headquarters for Edinburgh's booming financial institutions, developing state-of-the-art schools and hospitals or meeting the housing crisis, construction firms are central to the social and economic well-being of our nation.
Despite the importance of the sector, governments have not always been responsive to the industry's needs. Political recognition has focused on skills and overlooked the importance of construction.
Recently, economic growth has masked many of the
challenges faced by the industry. Now, with the credit crunch causing growing uncertainty, demand for government action is growing. For the sector to succeed in a leaner economic climate, answers must be found to the skills shortage, planning delays, college investment, rogue traders, environmental concerns and the bullying behaviour of utility companies.
As the voice of the Scottish construction industry, the Scottish Building Federation (SBF) is determined to put our sector's needs firmly on the political agenda. Next week, John Swinney will help us launch Blueprint 2008: Building Scotland's Future at a reception in the Scottish Parliament. The document sets out our priorities for the year, and top of the list is skills.
Industry is already leading the way on apprenticeships. The SBF is a founder member of the Scottish Building Apprenticeship and Training Council (SBATC). The SBATC registers 2,800 new apprentices a year and, if the entrants to the electrical and plumbing trades are included, this total is in excess of 4,000, a 42 per cent rise over the last four years. Forty-five per cent of all construction apprentices are trained in Scotland.
A new strategic approach is required to meet the demands both of industry and Scotland's young people. The Construction Skills Network has estimated strong infrastructure output growth of 6.2 per cent annually between 2007 and 2011, the third highest in the UK, with a key driver likely to be infrastructure projects. The Scottish Government has set a target of 35,000 new homes by the middle of the next decade but little is being done to ensure we have the skills to meet the challenges.
Around 7,000 new recruits are required every year until 2011 to meet the demands of the projects already in development. In order to achieve these, high levels of training and recruitment need to be encouraged and maintained and employment opportunities need to be sustainable, affording a quality four-year apprenticeship. New fiscal incentives are needed to encourage employers to take on more apprentices, particularly in the difficult early years. It is also vital that schools provide the option of vocational careers and universities and colleges have the necessary capacity to deliver these courses.
Planning delays must also be tackled. The recent Planning Act has proven a step in the right direction but will take some time to bed in. There are clear problems with resources at a local authority level and a lack of trained and experienced planners to deliver a more pro-development agenda is incurring unnecessary delays.
Blueprint 2008 calls for government leadership to address the obstructive practices of Scotland's utility companies. They must be made to play their part and provide significantly improved performance, treating the Scottish construction industry as a client. Delays and inefficiencies are costing the Scottish economy millions of pounds every year and resolving these will bring significant dividends to the construction sector.
To co-ordinate responses to all of these concerns, the SBF is calling for a dedicated construction minister in the Scottish Government.
Success in recent years has been achieved with little need for and few offers of strategic support from government. By approaching the needs of the construction industry as a whole instead, the building sector can ensure continued Scottish growth while the global economy rocks.
• Michael Levack is chief executive of the Scottish Building Federation.
