One third of companies surveyed in the latest Construction Industry Federation’s Construction Outlook Survey reported an annual increase in turnover during the second quarter of 2024.
30% of companies also reported a year-on-year increase in the total number of people they employed in the same period, with 26% expecting to employ more staff in the coming months.
Meanwhile, 28% of construction firms reported an increase in revenue from new orders.
This increase was seen across general contracting and home building, with a decrease in new order revenue across civil engineering and specialist contracting.
All sectors expect an uplift in the third quarter, apart from the civil engineering sector.
Today’s survey reveals that the cost of labour and raw materials continues to put upward pressure on pricing across all sub sectors, with 67% of survey respondents seeing an annual increase in the cost of labour and 64% reporting an increase in the cost of raw materials.
54% of companies expect the cost of labour to continue to increase in the quarter of this year, it also noted.
The survey also found that the key challenges facing the construction sector are access to skilled labour (73%), securing a healthy profit margin (61%), increased cost of materials (56%) and continuity of work (50%).
Hubert Fitzpatrick, Director General of the Construction Industry Federation, said that unprecedented demographic growth and an ageing population will mean that demand for investment in critical infrastructure will reach beyond the existing capital ceilings, especially in water services, housing and transport.
“The Construction Industry Federation is calling for an expansionary Budget in 2025 to support Government’s competing policy choices in the year ahead, in the context of Europe’s twin green and digital transitions and growing geopolitical and economic instability,” Mr Fitzpatrick said.
“Hyperinflation in many building and construction materials in recent years, as well as fuel, has put a strain on the cost of delivering some of the infrastructure projects in the National Development Plan, as capital budgets are pre-determined. The Construction Outlook Survey results have been tracking this for some time,” he said.
“Though easing, the duration of inflation and rising prices remains somewhat uncertain. Slow economic growth and diverging levels of inflation across European Member States is now a reality,” he stated.
Mr Fitzpatrick said that Irish cities, provincial towns and regional communities require Irish construction companies to deliver billions of investment in critical infrastructure under the National Development Plan to drive economic growth.
“At a minimum, Irish society needs the construction industry to deliver at least 50,000 housing units annually from now until 2050. For economic growth to be sustained, investment momentum must be supported,” he added.
Article Source – Construction industry calls for ‘expansionary’ Budget – RTE
