Turner & Townsend Ireland market intelligence report
– Covid-19 continues to have a detrimental effect on the Irish construction industry and it is likely to be late 2021 before it starts to recover more fully.
– 37.5% of the surveyed contractors reported that their projects had increased in duration by three to four weeks.
– Lead-in times have increased with a third of respondents reporting an average increase in lead in times of one to two weeks
Strong competition and moderate tender prices
Turner & Townsend’s Republic of Ireland market intelligence report points to competitive conditions for contractors, with strong competition and moderate tender prices. Figures from surveyed firms show that 90% of companies’ believe current tender conditions to be cold or lukewarm.
Covid-19 continues to have significant effects on the Irish construction industry with all surveyed contractors reporting reduced productivity levels, increased commercial pressure on contractor’s supply chains and lengthening programme times.
According to the report, margins across the sector are at 3.7% (down from 4.2%) and overheads and profit are at 4.6% (down from 7.4%). While this is good news for clients, Turner Townsend says it expects to see the levels increase once the construction industry starts to recover fully.
Key challenges for Irish construction in 2021.
Mark Kelly, Managing Director, Republic of Ireland, Turner & Townsend, said, “The Irish construction industry, while remaining strong, faces some key challenges in 2021. With the current vaccination programme for Ireland in place, it is likely that construction sites will operate under the current Covid-19 restrictions for the remainder of 2021
at a minimum, meaning that the majority of current issues will remain for some time yet.”