A prominent supplier of heavy equipment for construction work is on course to set a fresh sales record this year amid signs the recovery in the key housebuilding market is gaining momentum in Scotland.
Scot JCB expects to grow sales from the record £91 million set last year following a big increase in activity among housebuilders.
This has been accompanied by strong demand from construction firms working on road building and other projects.
"Construction customers are doing an awful lot better, builders are building homes and everyone associated with housebuilding is feeling a lot happier than they have been for a long time," said Scot JCB's managing director Steve Bryant.
The privately-owned company's experience provides further evidence that the housebuilding sector in Scotland is emerging from a long period in the doldrums.
Scot JCB suffered a sharp slow down in sales after the housing market boom of the last decade ended in 2007 in the wake of the credit crunch. Sales slumped from the previous record of £90m set in 2007 to £56m in 2009.
Mr Bryant noted the improvement in housing helped the company grow sales by 5% last year, from £87m in 2011.
The upbeat report on the housing market came weeks after Miller Group posted a 51% increase in underlying first half profits to £14.2m, from £9.4m in the same period last year. The Edinburgh-based housebuilder said official moves to encourage banks to lend, through schemes such as Funding for Lending, have had a noticeable effect on activity.
While some economists have expressed concern the Government's action may lead to a house price bubble developing, Mr Bryant appears to believe the recovery has a way to go.
"I think this year and next are going to be OK," he said.
Mr Bryant noted Scot JCB's growth has been broadly based.
In the company's accounts for 2012, Scot JCB said: "2013 has started extremely well and construction activity, both in housebuilding and in civil engineering, is increasing, with more customers having the confidence to invest in major plant purchases. The agricultural and industrial divisions are also trading strongly."
Mr Bryant said the preparations for the Glasgow 2014 Commonwealth Games have also provided a boost to trading.
Investment in renewables is stoking demand for equipment used on wind farm construction projects.
Changes to the tax regime last year encouraged farmers to bring forward spending on things like tractors to the first quarter of last year. Mr Bryant believes other tax changes may encourage farmers to increase investment in the future.
He said he hoped Scot JCB would increase profits this year after seeing margins come under pressure in 2012.
Scot JCB made £2.4m pre-tax profit in 2012, compared with £3.1m in 2011.
The fall in profits partly reflected an increase in staffing levels, which in turn reflected Mr Bryant's confidence in the company's prospects.
Scot JCB had a monthly average of 186 employees in 2012, compared with 178 in the preceding year.
Mr Bryant led a £5m management buyout of Scot JCB from the former Hewden Stuart in 1998.
Building giant Galliford Try said last week its construction arm is performing well in Scotland where the public sector has been providing a bigger boost to demand than south of the Border.
But it said demand for homes was not strong enough to merit increased investment in that market in Scotland.
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