Construction BUSINESS

The Construction Industry Federation’s Quarter 1 Outlook Survey reveals positive trends in turnover and employment for the construction sector. Surveying 240 construction companies, the results show a steady rise in both areas, signalling a promising outlook. However, challenges persist, primarily driven by increasing costs of labour and raw materials. Despite these challenges, the survey highlights a nuanced landscape for the industry in 2024.

The survey delves into the diverse projects anticipated in 2024, with housebuilders mainly focusing on new builds, general building contractors diversifying across various sectors, and civil engineering contractors concentrating on energy, water, transport infrastructure, and roads. Construction investment is projected to increase by 4% in 2024, with continued expansion in residential, non-residential, and civil engineering sectors, emphasizing sustainable infrastructure development. However, challenges like capacity constraints and deliverability issues within planning and procurement systems need addressing.

Key survey findings point to a positive trend, with 39% reporting a year-on-year increase in turnover in Q4, 26% noting an increase in the total workforce, and 68% facing a rise in labour costs. Challenges include access to skilled labour, securing a healthy profit margin, and the increased cost of raw materials. As the industry urges the government to avoid interventions that could lead to further price increases in energy-intensive construction products, strategic policy interventions are needed to address these challenges and ensure sustained and efficient development in the construction sector.

Source: Irish Building Magazine