Cash flow has completely dried up for nearly 80% of firms in the construction industry in Scotland, according to businesses which responded to a survey carried out by the newly-established Construction Industry Coronavirus (CICV) Forum.
More than half of firms who took part in the new poll also say they’re owed vital monies from public and private sector clients, with invoices now overdue.
As a consequence of the current pandemic, more than two-thirds of all companies who took part in the survey say they’ve furloughed staff, over a third are shut completely, while more than a quarter currently have staff and sub-contractors in self-isolation.
The effect of the COVID-19 crisis and the recent Scottish Government instruction for all non-essential work to cease is revealed in the survey, which was carried out on behalf of the CICV Forum between 1 and 14 April.
The survey analysed responses from 377 construction companies across Scotland, ranging from electricians, builders and plumbers to surveyors, architects, roofers and joiners.
Among its findings, the poll revealed that:
– 78.92% of respondents, or 262 firms, said cash flow has stopped.
– 67.74% of respondents, or 231 firms, have furloughed staff.
– 36.53% of firms are now closed, while 54.13% are carrying out emergency
work only.
– 56.10% of firms have overdue invoices that were sent directly to public sector clients.
– 55.42% of firms have overdue invoices that were sent directly to private sector clients.
– 26.39% of firms have staff and sub-contractors who are currently self-isolating.
– 33.13% of firms say they are finding it difficult to source appropriate materials.
John McKinney, Secretary of Forum members the National Federation of Roofing Contractors (NFRC), the Stone Federation and the Scottish Contractors Group,said: “These disturbing results illustrate very clearly that the construction sector in Scotland is being hard hit, despite the measures that have been put in place to alleviate the pain.”
