Irish construction industry feels the impact of COVID-19

Mark Kelly - square.png

Mark Kelly

Managing Director, Ireland

Results from our latest Republic of Ireland market intelligence survey indicate a market expected to cool, bringing increased pressure on the Irish construction industry.

As the Government looks at stimuli to re-start key segments of the economy, the construction industry waits for signs of these to filter through to increased tender opportunities and to instil confidence in the sector. Our survey for Q2 echoes this sentiment, with 61.5 percent of respondents believing that the construction market is cooling.

Effects of COVID-19

COVID-19 has had a significant effect on the outlook for the Irish construction industry with respondents reporting that the market has stalled and is very difficult to predict. While the longer-term impact won’t be known for a while yet, tendering conditions will become more difficult in the short to medium term.

According to surveyed contractors, the Irish construction market is weakening. A combined total of 83.3 percent of those surveyed believe current tender conditions are cold or lukewarm, compared to 43.8 percent of respondents in our Q4 2019 report.

The residential sector is the top performer again despite the COVID-19 crisis, with 46.2 percent of respondents stating it is their top-performing sector.

Key challenges 

There is room for caution in Ireland however, with increased commercial pressure on contractors' 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.

Download the report to read more about these challenges and see the full analysis and insight from the survey.

Further resources

Please visit our COVID-19 response page for all of our resources relating to the impact of COVID-19 on the construction sector.

For further information contact:

Mark Kelly - square.png

Mark Kelly
Managing Director, Ireland

t: +353 (0)1 400 3300