New chair appointed to lead Scotland’s construction industry
First industry survey highlights innovation as key to growth
Issued on behalf of Construction Scotland
Scotland’s construction industry marks the start of a new era with the appointment of Tim Clarke, Divisional Managing Director of Balfour Beatty Construction Scottish and Southern, as chairman of the new Construction Scotland Industry Leadership Group.
The announcement comes ahead of the industry’s annual conference next week (22 October) where a new strategy document for the industry will be launched.
Mr Clarke brings over 30 years of industry experience, and will play an instrumental role in establishing the new Industry Leadership Group to drive the industry’s ambition for growth forward.
Commenting on his new appointment, Mr Clarke said: “Scotland’s construction industry is key to the wellbeing of Scotland’s economy, community and society. Its broad and diverse range of businesses, from designers, private and social house builders, commercial developers, to contractors, universities and major infrastructure, the industry contributes over £21 billion to Scotland’s economy every year.
“It’s no secret that the industry has been badly affected by the economic downturn over the years, but building on our key strengths and working together with the public and private sector partners, academia and industry representatives, we will realise our full potential and make an even bigger impact on the Scottish economy.”
Mr Clarke’s appointment coincides with the announcement of the industry’s first annual Construction Scotland Industry Survey Analysis Report, the first study of its kind involving businesses in Scotland’s construction industry.
The results highlight that a quarter of Scottish construction businesses expect their business to grow over the next year, despite the economic downturn which remains the biggest issue for the sector.
That said, businesses recognise the benefits innovation can bring in addressing the challenges of the downturn with over 60 per cent of respondents saying they want to use new construction processes, over 40 per cent saying they had improved their processes in the last year, and almost 40 per cent agreeing that changing the way they worked would make them more competitive.
Respondents also told how they are still struggling with access to finance and public procurement processes, but are buoyant about the opportunities afforded by new green targets.
The survey showed businesses are using waste reduction and new building methods to increase turnover and also see renewables and the refurbishment of existing buildings as Scottish construction’s two key growth areas.
When asked what they felt would be the main areas of growth for the construction sector over the next five years, more than a quarter of those surveyed said renewables were their main hope, while 21 per cent said retrofitting and refurbishment of the existing built environment were action areas.
Public infrastructure projects – like the Borders Rail route and the Aberdeen Western Peripheral Route – were seen as more attractive than private sector new build projects.
Encouragingly, the survey also showed how almost 30 per cent of respondents are currently involved in exporting – mainly to the rest of the UK, Western Europe and the Middle East.
Collaboration was also recognised as being key to the industry’s future success, with 38 per cent saying they think their business would be more competitive if they collaborated and almost half of respondents said that they plan to work with others to compete over the coming year.
Tim Clarke added: “This survey provides a fascinating look into the minds of people who are on the front line of Scotland’s construction industry. It gives us a clear picture of how businesses are feeling about the opportunities which lie ahead, what their intentions are over the coming months and what issues the industry is facing today.
“Projected growth over the coming months is encouraging, as is the importance companies are placing on innovation - improving efficiencies while increasing productivity is key to delivering ambitious growth plans.
“It’s also reassuring that companies are seeing opportunities emerging from the low carbon agenda, whether its adopting a more sustainable approach to their business or contributing to the development of a world class business environment for companies looking to invest in renewable energy, the construction sector is perfectly placed to capture a slice of this rapidly growing market.
“Feedback from this survey has been beneficial during our strategy development process and I’d like to thank the businesses for their time and commitment in helping us deliver it.
Enterprise Minister Fergus Ewing said: “The construction industry makes a major contribution to Scotland’s economy and the Scottish Government and our enterprise agencies are focused on strengthening the sector.
“We are determined to help revitalise the industry both through planning and procurement reforms and by encouraging growth through innovation and development. Our commitment was demonstrated in our draft budget, which focussed on jobs and growth and provides further investment in construction, skills and the green economy, backed by £180 million of stimulus.
“I would like to record my personal thanks to the outgoing Chairman Archie Ferguson for his work over the years to strengthen the industry and wish Tim Clarke every success in his new appointment as Chairman of the Construction Scotland Industry Leadership Group. Construction Scotland can be assured that this Government will do all it can to support and grow the industry sector, which makes such a significant contribution to Scotland’s economic success.”
Construction Scotland, is tasked with providing leadership and direction for the sector by engaging with Scottish Government Ministers, key stakeholders such as Scottish Enterprise, Highlands and Islands Enterprise, Skills Development Scotland and Scottish Development International, and the wider industry.
The Scottish construction industry is made up of 31,000 businesses which employ 170,000 people (10% of Scottish jobs). The sector is worth £21.4bn annually.
A joint conference between Construction Scotland and BRE Scotland at the Grand Central Hotel, Glasgow, on 22 October, will see the launch of Building for the Future – The Scottish Construction Industry’s strategy for 2013-16.
- 177 respondents answered a series of questions about the state of their industry in the first Construction Scotland online survey. This input has helped to inform the development of a new strategy for Scotland’s construction industry which will launched at the conference.
- Biography for Tim Clarke, Divisional Managing Director, Balfour Beatty Construction Scottish and Southern
With over 30 years of construction experience, Tim has delivered many successful projects across all market sectors under various forms of contract. His current portfolio includes the recently completed £170m New Victoria Hospital at Kirkcaldy, four schools for North Lanarkshire Council under its framework, two projects for Strathclyde University, the re-roofing and platform works at Waverley Station, the refurbishment of 50 George Square for Edinburgh University and the Buchanan Street development for Land Securities in Glasgow.
Tim has a keen interest in how the industry can work closer with customers in both the public and private sectors to meet their needs and, in return, for them to understand how they could assist the industry. In particular, he cares about how public projects are procured and suggests that the quality of product and service be given greater status.
The Scottish division of Balfour Beatty Construction Scottish and Southern has an annual turnover of £140m and currently employs 160 people and 50 of its own trade operatives.