Future outlook and strategic considerations
Looking ahead, continued stability is expected for the Irish construction market, with modest growth, though several factors could disrupt this trajectory. Housing demand remains strong, particularly in the private sector, however, affordability challenges and planning bottlenecks threaten to constrain expansion. The public works sector, especially education and healthcare, offers reliable opportunities but may be subject to government funding constraints.
Contractors anticipate a gradual easing of tender price inflation over the coming years, which could help improve project viability if realised. However, persistent labour shortages represent a structural challenge that may limit productivity gains and drive wage inflation, particularly if housing output accelerates.
The industry continues to struggle with the transition toward more sustainable practices, though progress varies significantly across companies and project types. This transition presents many challenges, however, early adopters are potentially gaining competitive advantages as environmental requirements become more stringent.
Despite the recently published implementation plan for the enactment of the Planning and Development Act 2024, planning reform remains a critical need, with bottlenecks in the approval process consistently cited as impeding project progression.
Similarly persistent is the need to address the skilled labour shortage through training initiatives, immigration policy changes, and technological innovation for the sector's long-term health.