I was asked by a construction journalist recently to share my predictions for construction in Scotland for 2024. Here are my thoughts and I very much welcome the views of my network.... and whether you agree, disagree or have any points to add! ?? There is no doubt that the economic outlook remains challenging post-pandemic and 2024 is likely to be similar while interest rates and energy costs remain high. Materials prices have thankfully now stabilised, but the cost of products derived from timber, oil and steel and that are highly energy-dependent will continue to rise. The situation in Ukraine is the major factor in this price instability. There is still a very significant shortage of skilled labour in the construction industry in Scotland and a reducing number of apprentices.??♂???♀? The education sector remains a strong source of work in Scottish construction and for Deanestor, and that is likely to continue for at least the next two years following the announcement on the LEIP phase 3 funding. I believe healthcare will continue to be weaker and is dominated by a very small number of large hospital projects. Student accommodation will be an important source of work for construction in Scotland over the next 2-3 years but by contrast, investment in build-to-rent (BTR) and new project starts have slowed significantly. This is due to The Scottish Government’s policy on rent caps and eviction protections and so is unlikely to change in 2024 and beyond. There is a clear trend towards offsite in the BTR and student housing sectors in Scotland. ?? Bathroom pods, for example those manufactured by our sister company Offsite Solutions, now feature at front-end design stage and more developers and contractors are keen to explore offsite to help address skills shortages and achieve better quality control. MMC is now part of every pre-qualification, and we predict it will be similar to the sustainability agenda and that offsite will be front of mind on every project. #loveconstruction #constructionindustry #scotland #scottishproperty #education #healthcare #studentliving #buildtorent #fitoutinteriors #contractors #architects #developers #localauthorities #NHStrusts
