Stewart Milne Group adds to construction sector woes

Evidence of the housebuilding slump continues as one of Scotland’s largest construction companies, Stewart Milne Group, is to slash its workforce by one fifth.

The Aberdeen-based group said 289 jobs are to go with the majority of the cuts in the north east of Scotland.

The housebuilding company is the latest to announce cutbacks due to a downturn in sales as house prices continue to fall. In the last fortnight, other housebuilders including Persimmon, Barratts, Bovis and Redrow Homes have all announced job losses.

Last week Kier Group, the construction, housebuilding and maintenance company, announced it is to shed around 350 staff while Wolseley, the world’s largest distributor of plumbing materials, announced further job losses as a result of the housing slowdown.

JCB, one of the largest construction equipment manufacturers in the world, has announced 650 job losses last week due to a ‘severe fall in demand for its products‘.

According to chief executive, Stewart Milne, market conditions have been more challenging in England and almost 100 members of staff will lose their job.

Mr Milne went on to say that the lack of mortgages available and low consumer confidence has resulted in a fall in sales and added that no-one in the construction sector is immune from the downturn.

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