Contractors order books filling up but costs rising fast

Our latest Workload Trends Survey painted a contrasting picture of the civil engineering contracting industry in Scotland, with firms reporting healthy order books but costs are still rising at record levels.

The report for the last quarter of 2021 is avialable to download here.

• Workloads rose in Scotland, according to 45% of firms, the highest balance in nearly seven years.
• A balance of 45% of Scottish firms also reported that orders had risen, the highest in nearly six years.
• For a second consecutive quarter, all Scottish firms reported an annual rise in costs.
• Employment data showed an improvement from Q3.
• The proportion of Scottish firms citing issues with the supply of skilled operatives and materials/products fell to 68% and 59% respectively, in Q4.

While the news about rising costs is unexpected, it makes for worrying reading for the industry as a whole. The survey took place before the Ukraine crisis and energy costs and price inflation have continued to rise.

We have called on the UK Government to take immediate action, including by delaying the planned removal of the rebate on red diesel.