Dive Brief:
- Scotland currently has approximately $62 billion worth of construction projects in the pipeline, but a fifth of those projects are being funded by outside sources, according to a construction intelligence specialist at Barbour ABI.
- On Thursday, the country votes to decide if it wants to leave the United Kingdom and become its own independent country. Right now, polls are suggesting the vote could go either way. If the country votes yes to independence, construction projects will likely stall as England and Scotland enter negotiations.
- The issue of currency will be the biggest question mark for construction projects in the pipeline if the country votes to leave the U.K.
Dive Insight:
Scotland has actually seen a drop in approved construction contracts this year because of the uncertainties the upcoming referendum brings. If Scotland achieves sovereignty, "it will be important that the key economic issues, from the currency to the operation of energy markets, are quickly resolved," said Allan Wilén, Economics Director at Glenigan, a contracts research company.