Last week, the results of a Deloitte survey of chief financial officers in Ireland showed that 96% believe the Irish economy had already returned to growth, or will do so in 2014. In the words of Bill Clinton “You’d have to be nuts not to take advantage of the unique investment opportunity presented by one of the most business-friendly countries in the world, with the youngest, best-educated workforce in Europe.” Here are some concrete indicators that the construction industry is returning to a sustainable growth path:
1. According to Ulster Bank’s Construction Purchasing Managers’ Index (PMI) the construction sector has stayed in expansion territory in the last 5 months between 59.3 from 63.2, in its fifth consecutive monthly reading above 50. The seasonally adjusted index monitors changes in total construction activity. Any reading above 50 indicates an increase in activity.
2. Latest figures from the CSO released last week show that Ireland’s unemployment rate dropped to 12.3pc in January – its lowest level in four years. Hays Ireland, the local branch of the multinational recruitment business, reported a 52 per cent increase in earnings from construction
3. According to Davy, output for the construction sector in 2013 was up by 11.2% on the previous year. (Source: Davy Research September 2013)
4. Ireland’s first Real Estate Investment Trusts (REITs) were launched on the Stock Exchange late last year. This heralds the recovery and potential of the Irish commercial real estate market, which will directly result in increased activity in the construction and fit out sectors.
5. The CIF estimates the value of construction activity in 2013 came to approximately€9.9 billion, up from the 2012 level of €9.07 billion. (Source: CIF News)
6. Construction employment as measured by the Central Statistics Office (CSO) Quarter National Household Survey grew by 9,100 between Q1 and Q3 2013.
7. €6.8 billion of large and medium projects are already scheduled for 2014 as recorded by Construction Information Services.
8. A €2 billion rollout in working capital and the €2 billion in seed finance promised by NAMA in 2014 marks the third year of those four year programmes. (Source CIF)
9. The CSO’s latest Production in Building and Construction Index recorded a 16.6% in civil engineering activity and 6.9% increase in non-residential building.
Many of the world’s biggest and most successful companies across a range of industry sectors already have considerable operations in Ireland, such as Google, Pfizer, Hewlett Packard and Intel. These companies are rolling out significant investments in their Irish operations indicating their confidence in the future of Ireland and our workforce. Alongside the giants are the tech startups who are seeking to expand in the ‘friendliest city in Europe’. Looking at the trends (and the skyline) it appears the only way is up!
