Linesight report provides a useful overview of the performance of the Irish Construction Industry
Linesight Strategy Management Consultancy published the ‘Ireland Regional Analysis’ report this week. The report presents a positive outlook for the Irish construction industry with strong growth in output levels for 2015 and 2016 (€15 billion in 2016, an increase of 18 percent on the 2015 level) expected to continue.
The growth in new commercial office space and office fit-outs in the Greater Dublin Area, a key driver in the recovery of the construction industry, is now becoming more evident in other major urban centres throughout the country, with renewed activity also taking place in the hospitality and retail sectors.
Looking to the residential sector, the severe supply issue that has dominated the headlines in recent years is anticipated to improve, with residential construction seeing a return to viability with the easing of funding restrictions and various Government initiatives.
Public sector capital expenditure in the transport, education, enterprise, housing and health sectors is also set to increase significantly under the Governments Multi-Annual Public Capital Investment Allocations for 2017-2019.
With continued growth in the commercial, retail and residential sector anticipated, industry output is anticipated to grow to approximately €17 billion in 2017 and to reach €19.6 billion during 2018.
Looking forward, the Linesight report warns that one of the biggest challenges for the construction industry will be to address the significant skills shortage that now exists right across the sector, a legacy issue of the mass emigration of construction industry professionals during the downturn. Other factors, such as the uncertainty surrounding Brexit and the potential for changes brought forward by the new Trump administration in the US, are also discussed in the Linesight Report.
FAC are currently collaborating with a pan-European consortium on a proposal to research the skills and training enhancement needs of certain sectors of the construction industry, including the use of BIM, technology and green construction solutions in the built environment. In addition, FAC serves as the Independent Evaluator to the BIM Innovation Capability Programme led by the Construction IT Alliance and supported by Enterprise Ireland.
With the release of Census 2016 data this week, the value of quality data to inform socio-economic assessment and sectoral trends is reaffirmed.
For more on FAC’s research areas and service offering, see www.futureanalytics.ie.