STATE OF THE MARKET
Calm after the storm After the excitement and uncertainty of last year’s referendum, Scotland is quietly returning to normality, and pushing on with its economic recovery. And electrical contractors are doing the same > Newbuilds are keeping Galloway Group electricians busy
By Adrian Holliday
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fter the excitement of the referendum, the Scottish economy remains at a crossroads. Private investment is starting to pick up, unemployment is falling, and many electrical contractors are being supported by a surge in the housing market, especially newbuild. But estate agency Savills recently warned that the Scottish property market is likely to underperform compared with the rest of the UK for the next five years. For many contractors, there’s plenty of pressure lurking: wages are rising and skills shortages remain acute, according to recent Office for National Statistics data. But how much are the headline worries really reflected on the ground? Newbuild confidence Let’s begin at the Dundee office of Bruce Bisset, a director at Galloway Group, an engineering and electrical solutions operator. In total, Galloway employs around 250 people, with 20 electricians on the books and a strong presence in 8
the newbuild housing market. “We are seeing an improvement in business, certainly since 2009,” says Bisset. That year was grim. The workload dropped dramatically, with turnover sinking to £1.25 million compared with £2.5 million in 2008. “We had 40 electricians, but had to cut down to 15,” he recalls. Looking ahead, a skills shortage is frustrating, especially when certain hotspots – Aberdeen’s oil and gas industry being one – put pressure on costs. “The oil-related business there means wages are very much higher, although that may change as the oil price goes down,” he says. Oil prices have dipped by 30 per cent since mid-summer due to lower demand and an abundance of supply.
‘We’re already securing jobs for later this year and there has been a return to spending over a three to four-year period’
But the skills issue, and the lack of local labour, is irksome. “It’s a struggle to find staff,” he says. “We’ve put countless adverts in magazines, online and other recruitment places.” Currently they have two apprentices and an adult trainee – an area Bisset increasingly wants to focus on. “They’re a bit more mature, although they’re also hard to find.” Galloway is sticking to the newbuild market. It’s had some experience with student accommodation, but the margins are tighter. Despite government rhetoric, the renewable or “green” element still isn’t really there. “Not a lot of renewables go into newbuild yet,” says Bisset. “We did look into solar panels 10 years ago, but none of the housebuilders were prepared to include it, to keep costs down. But recently we received an enquiry that does have a requirement for photovoltaic (PV).” Planning ahead Crossing the Tay and turning south-east, we head for St Andrews. Connections last talked to Ronnie Grant, owner of R.B. Grant in 2012, which at the time employed 50 people. Grant was getting through the recession with some diversification; public sector work was getting tighter. Now, things are better –
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