The results from Turner & Townsend’s Spring 2025 market intelligence survey shows signs of continued stability in Q1 2025 as the Republic of Ireland's construction industry starts to feel the impacts of the first 100 days of the new government. It is important to note, however, that the survey was completed before the introduction of imposed tariffs and their potential impact on the global construction sector, which could lead to sudden cost surges.

The data indicates a market that is largely holding steady, with 73.0 percent of respondents characterising conditions as ‘staying the same’, though a notable 18.0 percent perceive a cooling trend emerging - this is an increase from just 11.0 percent in our Autumn Q3 2024 report. This growing perception of market cooling suggests shifting sentiment among industry participants that may reflect concerns about policy direction or economic headwinds.

Material and labour costs are experiencing moderate inflation, with 64.0 percent of respondents reporting marginal increases in material costs (Figure 1) and 45.0 percent noting similar rises in labour expenses (Figure 2). These pressures, while persistent, represent a moderation from previous years' more aggressive inflation. Tender price inflation projections show a gradual easing, forecast at 3.3 percent for 2025, declining to 3.1 percent, 2.7 percent, and 2.4 percent for subsequent years through 2028, according to contractor forecasts.

Current operating capacity stands at 80.0 percent across surveyed contractors, indicating reasonable utilisation but with capacity for additional work. This aligns with the order book projections, which show strong short-term security (73.0 percent full for 2025 – 2026) but decreasing certainty for longer-term periods (43.0 percent for 2026 – 2027 and just 22.0 percent for 2027) as shown in (Figure 3).