The future of construction

In the last year, Brexit has been ruling the headlines. While some see it as a challenge to be overcome, Guaranteed Irish see it as an opportunity for growth and diversification. Here, business experts weigh in on the future of construction

While some see Brexit as a challenge to be overcome, Guaranteed Irish see it as an opportunity for growth and diversification. Business experts weigh in on the future of construction

There is a real sense within this sector that companies have worked hard through the recession and are well equipped to face future challenges

Guaranteed Irish believes that Irish businesses must be proactive if they are to survive and thrive. Expanding and diversifying to other markets is essential if businesses want to succeed in a changing global economy. Guaranteed Irish supports Irish businesses in expanding and scaling up, and it endorses the search for foreign investment and delivery of jobs to Irish communities. These initiatives are important for sustaining growth in the Irish economy.

While the future of the economy looks bright, the Brexit referendum has created uncertainty for Ireland.

Ireland has always been heavily reliant on the United Kingdom as a trading partner. Figures released by the Department of Foreign Affairs show that Ireland and Britain trade over €1 billion worth of goods and services every week. It also shows that 55pc of Irish exports in the construction and timber sectors go to the UK each year.

So what can Irish businesses do to protect themselves going into the future?

Carmel Logan, a Board Member with Guaranteed Irish and Tax Director with KPMG Ireland specialising in Real Estate and Construction, says, “Planning ahead is key so that businesses are ready for the opportunities and challenges that Brexit will bring.

“It’s important to consider every part of the business supply chain. Understand who your UK customers, suppliers and service providers are. Guaranteed Irish gives every member a tool to connect with other Irish diaspora who are in a position to open doors in new markets.

“Planning early will allow for contingencies to minimise the cost and impact. In the short term, managing exchange rate volatility will be important when exporting into the UK, sourcing materials from the UK, or pricing quotations for UK jobs.”

DIVERSIFYING TO SUCCEED

Brexit has been a key focus point for Guaranteed Irish.

Brid O’Connell, CEO of Guaranteed Irish says, “There is a real sense within the construction sector that companies have worked hard through the recession and are well equipped to face future challenges. As such, they are perfectly positioned to share insights on the current housing crisis and how best to develop a sustainable construction sector, particularly given the new challenges we are facing in light of Brexit.”

The events during the Guaranteed Irish Construction Month are dedicated to creating a sustainable construction strategy for Ireland.

“One key objective for our members is to work with the Government to create sustainable construction strategies. We want the future of the sector to be more like a continuous straight line rather than peaks and troughs. We want to create an environment that triggers opportunities for sustained growth. This is a highly innovative, creative sector, with hugely skilled people who are constantly creating world-leading solutions for their industry. Along with new housing developments, we also want to see national infrastructure developments that will showcase our skilled workers and help ensure that we hold onto them here.”

Stephen Hughes, Head of Construction for Enterprise Ireland, says, “69pc of construction sector companies recently surveyed, now view the Eurozone as attractive. The language can be a challenge to overcome as can the access to market knowledge and finance but, none of these challenges should be insurmountable.

“Our construction sector companies who are committed to the UK will remain committed to the UK and they will be looking to find solutions to help them continue to trade successfully into that market region. But, it’s incredibly important to diversify away from the UK and into the rest of the Eurozone and North America. There’s an increase in interest in those areas and our companies can definitely compete in certain segments of those markets.

Guaranteed Irish supports this approach and hosts events for members on opportunities in new markets as well as showcasing opportunities for domestic growth.

Brid O’Connell says, “It’s by using a twintrack approach that we can help our members sustain and grow their share in competitive markets.”

A GROWING INDUSTRY

Despite the challenges ahead, the future looks to be filled with growth for the construction industry. This is according to a report by DKM Economic Consultants, commissioned by the Construction Industry Federation. With a forecast of 9pc annual growth and 112,000 additional workers in construction, it can become a €20 billion industry by 2020.

Shane Dempsey, Director of Communications for the Construction Industry Federation (CIF) says, “The construction industry is currently seeing a long-term increase in employment numbers. Each month, construction companies hire an additional 1,000 workers into the industry. The industry’s employment is expected to grow by 50,000 in early 2018.

“The reason for the increase in employment levels is a strong increase in construction activity driven by Ireland’s economy and growing population; both are the fastest in the EU. The DKM prediction of an additional 112,000 employees is a huge opportunity for the Irish economy to generate employment and drive sustainable economic growth.” Guaranteed Irish is committed to economic growth in the construction industry with its support and endorsement of Guaranteed Irish members which create quality jobs, contribute to the Irish community and enhance Ireland’s image both at home and abroad as a great place to do business.