Turner & Townsend’s Republic of Ireland market intelligence report points to competitive conditions for contractors, with strong competition and moderate tender prices. Figures from surveyed firms show that 83 percent of companies believe current tender conditions to be cold or lukewarm.
Despite general agreement that the full effects of COVID-19 are unclear, the residential sector is maintaining market confidence and remains the top performing growth area for surveyed firms, according to global professional services business Turner & Townsend.
Based on the current activity in the sector, including build to rent and public sector residential schemes in the planning stages, Turner & Townsend anticipates continued growth in the Irish residential market.
There is room for caution in Ireland however, with increased commercial pressure on contractor’s supply chains and lengthening programme times. Margins across the sector remain static at 4.2 percent while preliminaries are expected to rise to 11.2 percent to comply with COVID-19 safe working practices.
Mark Kelly, Managing Director for the Republic of Ireland at Turner & Townsend said “Confidence among contractors appears to be weakening and the Irish construction industry, while remaining strong, faces some key challenges in the short to medium term. COVID-19 has resulted in a short sharp shock to the Irish construction industry. As contractors get used to the new normal and find ways of improving their project’s performance they are eagerly looking to the Government to introduce stimuli to help the industry to recover to pre-COVID-19 levels”
To read the full report, please visit: https://www.turnerandtownsend.com/en/perspectives/irish-construction-industry-feels-the-impact-of-covid-19/