Irish Construction Industry Remains Strong in the Face of Covid Challenges - Construction Network Ireland - Construction Network Ireland

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Published in Construction on 30/03/2021

Irish Construction Industry Remains Strong in the Face of Covid Challenges

CNI Editor reports

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 90 percent of companies believe current tender conditions to be cold or lukewarm.

COVID-19 continues to have significant effects on the Irish construction industry with all surveyed contractors reporting reduced productivity levels, increased commercial pressure on contractor’s supply chains and lengthening programme times.

Margins across the sector are at 3.7 percent (down from 4.2 percent) and overheads and profit are at 4.6 percent (down from 7.4 percent). While this is good news for clients, we expect to see the levels increase once the construction industry starts to recover fully.

Mark Kelly, Managing Director for the Republic of Ireland at Turner & Townsend said: “The Irish construction industry, while remaining strong, faces some key challenges in 2021. With the current vaccination programme for Ireland in place, it is likely that construction sites will operate under the current COVID-19 restrictions for the remainder of 2021 at a minimum, meaning that the majority of current issues will remain for some time yet”

Read the full report HERE

Report background:

Turner & Townsend has been interacting with the supply chain to better understand the market dynamics which are fundamentally affecting construction price and cost movements in the Republic of Ireland. Every six months we collate survey responses from Irish contractors, allowing us to glean a snapshot of the local marketplace. This enables us to provide our clients with the most relevant and up to date market intelligence.

This market intelligence report contains all the core findings and conclusions drawn from the 2020 H2 survey period, undertaken in January 2021.