Construction Scotland. Industry Survey Analysis Report. June Compiled by

Transcription

1 Construction Scotland Industry Survey Analysis Report June 2012 Compiled by

2 Background Employing over 170,000 people, in more than 31,000 businesses across Scotland, the construction industry is a major contributor to the country s economy. The health of the sector directly links to the wellbeing of Scotland and is responsible for shaping our country s built environment. The economic conditions of the last few years have brought increased pressure on the sector which has led to a decline in output and revenue, reduced employment and business closures. At the same time, many businesses are capitalising on changes in legislation and customer demands, and responding to new opportunities. Industry Survey 2012 The findings from the ConstructionScotland Industry Survey 2012 will help shape the support provided to businesses and the construction sector as a whole. The Survey asked respondents for views on the construction industry across the following areas: Opportunities and challenges Innovation Exporting Skills & training The Low-Carbon Economy & Sustainability Confidence & Growth

3 The information provided through the survey will be used to inform the direction and strategies needed to manage issues, respond to opportunities and take the sector forward. The survey was promoted via Construction Scotland s social media channels, and a link was sent directly to several industry professionals. Media outlets, such as Business7 and Scottish Construction News, included a link on their Twitter feeds to the survey which served to boost participation. 177 respondents took part in the minute survey between early March and late April The overall findings and key insights are highlighted in this report.

4 About the businesses which took part in the survey What is the nature of your business? The above pie chart shows that the majority of respondents which took part in the survey identified the nature of their business as General Building (28.8%). 24.4% described their business as architecture & design, while 17.3% described their business as project management. Many respondents also came from civil engineering, housebuilding, civil engineering contracting, and repair and maintenance businesses. How many employees do you have? The results show that 29.1% of respondents reported that they employed between staff, with 22.2% employing between staff, and 20.9% employing between 1 10 staff.

5 The following pages detail the overall results and summary by question. Results Question 1 Respondents were asked which of the following represent significant opportunities for their business Top 5 responses: Retrofitting/ refurbishing other existing buildings represents significant opportunities for business. (62.07%) Education (Schools, Further/ Higher Education, Nurseries represents significant opportunities for business. (57.5%) New Build Private Housing represent significant opportunities for business. (48.85%) New Build Social Housing represent significant opportunities for business. (37.36%) Large Scottish infrastructure projects (Dundee Waterfront/ Energetics etc) represented significant opportunities for business. (35.53%)

6 Summary: The results show that over 100 respondents each selected Retrofitting/ refurbishing other existing buildings and Education (Schools, Further/ Higher Education, Nurseries) as areas which represent significant opportunities for their business. Building Products, Provision of services to Construction industry, and energy (onshore wind, geothermal, energy from waste) were seen as the areas which least represented opportunities. In total 174 respondents answered this question.

7 Question 2a Respondents were asked what they felt presented a significant barrier to the growth of their business Top 5 responses: Economic downturn (88.9%) Lack of deamand from the private sector (59.3%) Competition from companies not based in Scotland (55.8%) Procurement processes (54.6%) Access to funding (43.1%) Summary: The results show that the economic downturn is seen as the area which presents a significant barrier to the growth of their business with 153 respondents selecting this option. At the other end of the scale, political uncertainty and fuel costs, were seen as a barrier to growth by only two respondents. In total 172 respondents answered this question.

8 Question 2b Respondents were asked what they felt were the most critical areas affecting their business Top 5 responses: Downturn/ Depressed Demand (99.4%) Competition/ Approach to Procurement (68.2%) Finance/ Cashflow (37%) Low Margins (22.1%) Cost of Energy/ Fuel/ Raw Materials/ Equipment/ Transport (14.3%)

9 Summary: The results show that 153 respondents felt that Downturn/ Depressed Demand was a critical area affecting their business. Other areas identified as critical for many respondents were Competition/ Approach to Procurement and Finance/ Cashflow. In total 154 respondents answered this question.

10 Question 3 Respondents were asked whether their business would be more competitive if: Top 5 responses: Improved how the business was marketed. (43.5%) Adopted more efficient or innovative construction methods. (39.5%) Collaborated with other businesses (i.e. to tender for business). (38.3%) Red tape was reduced. (35.8%) Innovated more (new products and services). (33.5%) Summary: The results show that the majority of respondents (74) saw improving how the business was marketed as a route to making their business more competitive. At the other end of the scale responses such as Industry investment in innovation and a common sense approach to health and safety, were seen as least popular in enhancing the competitiveness of the business. In total 162 respondents answered this question.

11 Question 4 Respondents were asked if in the last 12 months their company had: Top 5 responses: Improved efficiency. (55.90%) Reduced waste. (47.83%) Improved its processes (introduced new construction menthods etc). (44.10%) Improved productivity. (41.61%) Reduced impact on the environment. (40.99%) Summary: The results show that 90 respondents reported having improved efficiency in the last 12 months, while 77 respondents reported reducing waste. In total 161 respondents completed this question.

12 Question 5 Respondents were asked if over the next year (2012/13) their business plans to Top 5 responses: Improve its processes (introduced new construction methods etc). (63.3%) Collaborate with another business. (45.6%) Launch a new product or service. (27.8%) Participated in Research and Development. (27.8%) Work with a University/ Research Institute. (24.7%) Summary: The results show that 100 respondents reported that they plan to improve processes (introduce new construction methods etc) over the next year, while Collaboration with another business was also a popular choice with 72 respondents selecting this option. In total 158 respondents completed this question.

13 Question 6a Respondents were asked if their business plans to export.(export defined as outside Scotland) Summary: Over half of the respondents said their business had no plans to export (56.8%). 29% said the business does export with 14.2% interested in finding out about export opportunities. In total 162 respondents completed this question.

14 Question 6b Respondents were asked (if their business does export) where does the business export to. Summary: The results show that England, Wales and Northern Ireland were reported as the areas which countries exported to most (87.3%). 34.5% of respondents said their business had exported to Western Europe, 27.3% said their business exported to the Middle East, 20% said their business exported to USA & Canada, while 18.2% exported to Eastern Europe. In total 55 respondents completed this question.

15 Question 7 Respondents were asked what the main skills issues were for their business Summary: The results show that 45.9% of respondents reported that they did not have any skills issues of concern. 39.6% said that cost/ affordability of training was the main skills issue affecting their business, 30.8% reported skills gaps/ shortages, 14.5% highlighted availability of labour, while 8.8% viewed links with Further/ Higher Education as a skills issue. In total 159 respondents completed this question.

16 Question 8 Respondents were asked if they see the forthcoming carbon reduction targets Summary: The results show that just under half of the respondents said that they saw the forthcoming carbon reduction targets as an opportunity for their business (45.3%). At the other end of the scale, only 4.4% saw the new targets as a threat to their business. In total 159 respondents completed this question.

17 Question 9 Respondents were asked if they would like to explore how their business could take advantage of the carbon reduction market Summary: The results show that over ¾ (75.8%) of respondents said that they would like to explore how their business could take advantage of the carbon reduction market, while only ¼ (24.2%) would not like to explore this further. In total 157 respondents completed this question.

18 Question 10 Respondents were asked how their business turnover had changed over the last 12 months Summary: The results show that over a third of respondents (36.9%) said that their business turnover had stayed roughly the same over the last 12 months. 30.6% said that their business turnover had decreased by up to 25% in this period, 20% said that their turnover had increased by up to 25%, 11.3% said that their turnover had decreased by 25% or more, while only 1.3% said that their turnover had increased by 25% or more. In total 160 respondents completed this question.

19 Question 11 Respondents were asked if over the last 12 months their business Summary: The results show that 41.6% said that their business had reduced the number of employees over the last 12 months. 39.8% of respondents reported that the number of employees had stayed the same in this period, while 18.6% had increased the number of employees. In total 161 respondents completed this question.

20 Question 12 Respondents were asked what their projections for business turnover are over the next 12 months. Responses: Over half of respondents (53.8%) reported that they expected their business turnover to stay roughly the same over the next 12 months. 21.3% said that they expected their business turnover to increase by up to 25% in this period, 15.6% expected the business turnover would decrease by up to 25%, 5.6% expected the business turnover to increase by 25% or more, while 3.8% expected the business turnover to decrease by 25% or more in the next year. In total 160 respondents completed this question.

21 Question 13 Respondents were asked if over the next year, they expect their business to Responses: Half of the respondents (50%) reported that they expected the number of employees in their business to stay the same over the next year. Over a quarter of respondents (29.4%) expected their business to reduce the number of people it employs. 20.6% expected to increase the number of people it employs. In total 160 respondents completed the question.

22 Question 14 Respondents were asked what they felt were the main strengths of the Scottish Construction sector Summary: Top 5 responses: People (Skills, Qualifications, Expertise, Knowledge & Experience). (40.9%) Company base & diversity/ breadth. (15.6%) Resilience & flexibility. (9.8%) Quality of Projects/ Opportunities. (7.4%) Quality. (6.5%) Innovation and research. (6.5%) There was a wide range of answers to this open response question. The results show that the majority of respondents (50) see People as the main strength of the Scottish construction sector, while 19 respondents view Company base & diversity/ breadth as the sector s key strength. In total 122 respondents completed this question.

23 Question 15 Respondents were asked what they felt were the main weaknesses of the Scottish Construction sector Top 5 responses: Approach to procurement/ focus on price. (18.1%) Lack of demand. (13.53%) Labour Market (low pay, skills shortages etc). (13.53%) Lack of vision/ No clear view of opportunities/ slow to change. (12.1%) International competition (incl. UK) (11.3%)

24 Summary: The results show that 24 respondents view the approach to procurement/ focus on price as the key weakness of the Scottish construction sector, with a lot of respondents also documenting lack of demand and vision, and the labour market as shortcomings. In total 133 respondents completed this question.

25 Question 16 Respondents were asked what they felt would be the main areas of growth for the construction sector over the next 5 years. Summary: Top 5 responses: Renewables. (25.8%) Retrofit & Refurbishment. (21.1%) Public Infrastructure. (19.5%) Private sector new build. (17.2%) Sustainable buildings. (14.1%) The results show that the majority of respondents (33) view renewables as the main area of growth for the construction sector over the next 5 years. Many respondents also identified retrofit, refurbishment, public infrastructure, private sector new build, and sustainable buildings as key areas of growth. In total 128 respondents completed this question.

26 Question 17 Respondents were asked if they would like to make any general comments about working in the construction sector.(issues listed below) Top 5 responses: Procurement & focus on price. (23.1%) Industry model unsustainable etc. (19.3%) Downturn. (17.9%) Government support. (11.5%) International competition. (10.3%)

27 Summary: The results show that just under a quarter of respondents (23.1%) made comments on Procurement & focus on price. Several respondents also used this question as an opportunity to comment on the Industry model, the downturn, and Government support. In total 78 respondents completed this question.