67% of Irish construction companies report no (48%) or low (19%) involvement in public infrastructure projects, according to the latest CIF Construction Outlook Survey.
The primary reasons deterring construction companies from taking up public infrastructure projects, such as water and energy, include low margins, high bureaucracy, delays in awarding tenders and lowest price award criteria.
The Construction Outlook Survey, which surveyed 221 construction companies, found that 29% of companies report a year-on-year increase in new order revenue in Quarter Four, with this expected to continue into 2025. 26% report an increase in the number of people they employ. This trend is expected to continue in Quarter One 2025, with particularly strong growth in specialist contracting and companies with a turnover of +€9m.
There are notably more companies working across all sectors in Q1 2025 compared to 2024. General building contractors and specialist contractors continue to operate across a broader sectoral base. Industrial and commercial projects account for 44% of planned non-residential work in Q1 2025. Energy and water, transport infrastructure and roads projects account for 82% of planned civil engineering and infrastructure projects for Q1 2025.
68% of survey respondents experienced a year-on-year increase in the cost of labour and 61% report a year-on-year increase in the cost of raw materials in the final quarter of last year. The increase in project pricing reported on throughout 2024 appears to be tapering in 2025.
Hubert Fitzpatrick, Director General of the Construction Industry Federation said: “The results from CIF’s quarterly Construction Outlook Survey show that the industry has grounds for increased positivity in 2025 as the sector continues to expand.
“To ensure Ireland’s future economic competitiveness amidst heightened geopolitical tensions and moderating domestic economic growth, Ireland needs a plan-led approach to infrastructure to ensure critical utilities, such as water, electricity and transport are built to support future population and labour market growth. According to the ESRI, Ireland requires significant and consistent rates of investment in the domestic economy as we contend with looming demographic changes in the decades ahead.
“The new Government needs to bravely lead Ireland in responding to the critical infrastructure, housing and enterprise commitments underpinning the new Programme for Government. Irish construction companies need to see stability, investment and reform to ensure sustainable progress can be achieved across all regions in terms of project delivery.
“The CIF and its member companies will actively contribute across all policy platforms to ensure investment momentum continues to assist with critical infrastructure delivery, the backlog in planning applications, public sector procurement reform, digital and off-site manufacturing adoption and labour and skills activation.”
Read the CIF Construction Outlook here: https://cif.ie/wp-content/uploads/2025/02/CIF-Construction-Outlook-Survey-Q42024_Q12025-1.pdf
