Key funding boost for Scots construction sector

Scotland’s construction sector is to receive an eight-figure funding injection to help it generate nearly £1 billion in additional gross turnover and create more than 1,800 jobs over the next five years.

(L-R): John Forster, Karen Watt, Richard Lochhead and Stephen Good. Picture: Andy Buchanan.

Core funding of almost £11 million is in line for the Construction Scotland Innovation Centre (CSIC) to support the sector in innovating, modernising and growing.

The investment from the Scottish Funding Council (about £8m), Scottish Enterprise (£2.5m), and Highlands and Islands Enterprise (£500,000) will allow CSIC to build on the foundations of a “highly successful” first five years and underpin its Phase 2 mission to mainstream innovation in construction, leading to better productivity and growth in the sector.

As well as the turnover boost and job creation over the next five years, the funding will help retain about 4,700 existing roles.

The funding was confirmed by Richard Lochhead, Scottish minister for further education, higher education and science, at the Industrial Strategy Challenge Fund Transforming Construction event taking place at CSIC in Hamilton International Technology Park today.

In addition to Lochhead, those in attendance included John Forster, chairman of Forster Group and CSIC board chair; Karen Watt, chief executive of the Scottish Funding Council; and CSIC chief executive and Stephen Good.

It was highlighted that Scottish construction and its supply chain currently employs more than 170,000 people with up to a further 60,000 self-employed workers – 10 per cent of the Scottish workforce.

The sector also adds £21.5bn to Scotland’s gross domestic product, and makes up a tenth of its gross value added.

CSIC is one of eight industry-led and demand-driven Innovation Centres in Scotland and provides the construction sector and its clients with a single entry point to innovation support. It was launched in 2014 with initial funding of £7.5m from the Scottish Funding Council, and its mission for the first five years (Phase 1) was to connect the construction industry with academia and build a culture of innovation “that drives transformational change and delivers economic impact for Scotland”.

It has exceeded its targets for this phase, which also saw the creation of the Innovation Factory in Hamilton, while over next five years (Phase 2), its activities will fall under key areas including culture change, digital transformation, and building sustainably.

Phase 2 plans also aim to build the Innovation Factory into a “national asset” for Scotland, making sure it engages effectively with initiatives like the National Manufacturing Institute for Scotland and the UK Construction Innovation Hub network.

Stephen Good, chief executive of CSIC, said. “The construction industry is on the verge of a digital and manufacturing revolution. With this next phase of funding support in place, we can help scale up and mainstream innovation within the sector, which in turn will unlock growth.”

Lochhead hailed the potential of the funding to benefit construction, as well as Scotland and further afield: “Our vision is for a Scotland where innovation is an intrinsic part of our culture, our society and our economy.

“This relies on a pipeline of knowledge and skills from universities, colleges and research institutes. Fostering connections between the worlds of industry and academia is vital in making that vision a reality for the construction sector as in others.”