Business News

Construction in Ireland – Key Trends and Opportunities to 2025

Construction Network Ireland expects the Irish construction industry to expand by 10.9% in real terms in 2021 – up from a decline of 12.7% in 2020. The industry’s output was affected by the COVID-19 outbreak and the subsequent lockdown measures imposed to contain the virus’s spread. This has continued to weigh on construction progress and has created supply chain disruptions and project delays.

The industry is expected to be further affected in Q1 2021 owing to the closure of non-essential construction sites from early January to early March 2021. The initial effects of the latest lockdown restrictions on the industry are reflected by the fall in Ulster Bank’s Construction Purchasing Managers Index (PMI) (Explained below). It fell to 21.2 in January 2021, following an average score of 42.1 in 2020. A further downside risk to the industry’s outlook stems from the double-digit year-on-year (Y-o-Y) contraction in the number of planning permissions granted during the first three quarters of 2020.

The construction industry’s output is expected to pick up pace and improve gradually over the coming months, following the re-opening of the industry. Output will be supported by the government’s investments in roads, housing, hospitals, and school projects. In the 2021 budget, announced in October 2020, the government allocated EUR10.1 billion towards capital expenditure, with the housing and transport sectors accounting for 27.3% and 24.5% of the total allocation, respectively. Over the remaining part of the forecast period, the industry is expected to register an annual average growth of 4.4% between 2022-2025, supported by the government’s investment in transport and housing infrastructure, as well as its focus on reducing greenhouse gas emissions in the country, which will attract public and private sector investment on renewable energy projects.

For more information please click on:
Construction in Ireland – Key Trends and Opportunities to 2025 (H1 2021)

This report provides detailed market analysis, information, and insights into the Irish construction industry, including :
– The Irish construction industry’s growth prospects by market, project type and construction activity
– Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Irish construction industry
– Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Ireland. It provides:
– Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Ireland, featuring details of key growth drivers.
– Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
– Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
– Listings of major projects, in addition to details of leading contractors and consultants

Construction workers, OASIS Project, Omagh
The façade of Strule Arts Centre is in the background. © Copyright Kenneth Allen and licensed for reuse under this Creative Commons Licence.

Construction Confidence Reaches 2 Year High – PMI

The latest results of the Ulster Bank Construction PMI point to a further significant contraction in Irish construction activity in March.  The headline PMI remained considerably below the 50 no-change level for the third month in a row, as activity across all sub-sectors declined sharply for the third consecutive month. 

While the pace of decline in overall activity eased somewhat relative to the very extreme weakness registered in January and February, the March results again highlight that activity was markedly restrained by the pandemic-related restrictions throughout the first quarter.

Despite what has undoubtedly been an exceptionally weak start to the year, survey respondents are becoming increasingly upbeat about the prospects for recovery. 

The future activity index jumped again in March to stand at its highest level in two and a half years as almost 60% of firms expect an expansion of activity over the next twelve months.  The jump in confidence was underpinned by the expectation of improved business conditions for the sector as restrictions are eased and as pent-up demand is released. 

Indeed, the recent government announcement that residential and childcare-related construction can restart from this week marks an important, albeit partial, step in the sector’s recovery journey.

Source: Construction Network Ireland

Jack Mullen
Follow Me:

Related Posts