Turner & Townsend’s Republic of Ireland market intelligence report points to competitive conditions for contractors, but with upward pressures on labour and material costs. Figures from surveyed firms show that 50 percent of respondents consider the market to be warm, hot or overheating.
Based on the current activity in the residential sector, including build to rent and public sector schemes, Turner & Townsend anticipates continued growth in the Irish residential market. COVID-19 continues to have a detrimental effect on the Irish construction industry though and it is likely to be late 2021 or early 2022 before it starts to fully recover.
While productivity working under COVID-19 restrictions has continued to improve, construction durations remain adversely affected with 37.5 percent of the surveyed contractors reporting that their projects had increased in duration by five or more weeks. Lead in times have also dramatically increased in the last six months with the majority of respondents reporting average lead in times in excess of three to four weeks
Mark Kelly, Managing Director for the Republic of Ireland Turner & Townsend said: “COVID-19 remains a lingering challenge to the Irish construction industry. As contractors get used to the new normal and both public and private sector clients juggle multiple, competing goals and priorities. Rising costs of construction, supply chain disruption and skilled labour shortages, are quickly becoming the biggest barriers to industry growth.”