Republic of Ireland's construction industry is on the up despite inflationary pressures
Irish construction has endured a rollercoaster ride in demand, supply and project risk and opportunity. Lockdown-era delay pressures and schedule overruns have given way to soaring input costs and intermittent availability of key materials, first as global demand rebounded and then as the conflict in Ukraine disrupted international supply chains.
Despite all of this the results from our latest Republic of Ireland market intelligence survey indicate that overall sentiment in the construction market in Ireland is improving.
Post COVID-19 recovery
The volume of building and construction output in the Republic of Ireland increased by 23.1 percent in the 12 months to Q1, 2022, with the industry recovering strongly post-COVID-19. In the residential sector the volume of construction increased by 76.9 percent in the same 12 month period.
Inflationary pressures and supply chain issues
While our analysis finds that inflationary pressures are likely to peak this year before subsiding in 2023, supply chain stress – and the disruptive threat of contractor and sub-contractor failure – is growing. Furthermore, the inflationary and insolvency threats are increasingly intertwined. Tackling them together will require a pragmatic approach to project and programme delivery.
For the full analysis and insight into the Republic of Ireland construction industry, download the full report.
If you would like to discuss this report or any of the topics covered, please contact Mark Kelly, or your usual Turner & Townsend key contact.