The challenges facing Ireland's construction industry in Q1 2025 are diverse, but skilled labour shortages stand alone as the most significant hindrance rated 4.0 on a 5-point impact scale. This is substantially higher than the next most challenging issues: government bureaucracy and delayed approvals, difficult contractual conditions, excessive lead times, and too many contractors competing for too few projects.

The impact on project timelines is notable, with 29.0 percent of respondents reporting three to four week increases in programme length over the past three months. Material lead-in times show a more varied picture, with half of respondents reporting no increase, but others experiencing delays of up to four weeks, potentially reflecting different material types and supply chains.

Programme length challenges are primarily driven by skilled labour shortages (rated 3.5 out of 5), followed by fixed price issues with suppliers, availability of materials, energy price related issues, and the conflict in Ukraine. Government policies face significant criticism from the industry, with 24.0 percent rating them as ‘least effective’ and 59.0 percent as only ‘fairly effective’.

Just 6.0 percent view current policies as ‘largely effective’, and notably, no respondents rated them as ‘most effective’. This widespread dissatisfaction with policy frameworks poses a challenge for the new administration as it seeks to address housing shortages and infrastructure needs.