In the second quarter of this year, the building industry saw continual growth in employment and revenue, with an optimistic trend of continued progression, as reported by the Construction Industry Federation (CIF).
A recent survey conducted by the CIF, which is taken quarterly, collected responses from 231 construction firms in July. Of these firms, a third had seen a year-on-year rise in revenue, while 30% had seen a year-on-year growth in staff numbers. A quarter anticipated hiring further personnel in the upcoming months.
Additionally, 28% of businesses noted a revenue boost from fresh orders throughout the general contracting and house building industries. However, revenue from new orders experienced a reduction in the civil engineering and specialist contracting sectors. Despite this, all sectors (excluding civil engineering) predict growth during the forthcoming third quarter.
Meanwhile, inflation of labour and raw material costs continued to intensify pricing within all subdivisions. 67% of surveyed businesses encountered a year-on-year rise in labour costs. A similar proportion reported a year-on-year hike in the cost of raw materials, while over half of companies forecast an increase in labour costs over the next quarter.
CIF Director General, Hubert Fitzpatrick, stated that anticipated investments in vital infrastructure like water services, housing and transport, would likely surpass current capital limits in Ireland. He also mentioned the strain hyperinflation had put on the cost of some infrastructure projects within the National Development Plan. He argued for an expansionary budget in 2025 to support the government’s differing policy preferences in the coming year.
Mr Fitzpatrick highlighted the need for construction companies to invest billions in critical infrastructures in cities, provincial towns, and regional communities under the National Development Plan to stimulate economic growth. He emphasised the essential need for the construction industry to produce at least 50,000 housing units annually from now until 2050. For steady economic growth, he concluded, investment momentum must be maintained.
The research determined that the principal obstacles encountered by the construction industry included the procurement of capable workers, sustaining a robust profit boundary, elevated material costs and consistent workflow.
Mr Fitzpatrick stated, “The trade has perpetually shown its ability to escalate operations and procure the necessary resources for execution. It is able to reassign commodities from one sector to another depending on necessity.”
A visible line of trust in a reliable batch of primed infrastructural construction enterprises is paramount to reassure the industry to boost investment and obtain the needed assets for project accomplishment.
“We implore the Government to augment investment in the nation’s vital infrastructure needs and persist with their support of encouraging initiatives educating our youth about the fulfilling career prospects within the construction field,” he concluded.