Construction sector in Ireland

An Expert's View about Government Procurement in Ireland

Posted on: 8 Sep 2010

The housing market in Ireland has collapsed and with it the construction sector

Sector briefing Construction Opportunities in Ireland Why Ireland? The housing market in Ireland has collapsed and with it the construction sector, large numbers of houses/ offices remain unoccupied throughout Ireland as well as a large number of unfinished projects. Architects are particularly badly affected. The closure of one of Ireland?s biggest practices Murray O?Laoire in April 2010 suggests tough times still ahead. Many associated businesses have therefore suffered badly and continue to do so. However many companies are diversifying in Country and expanding out with (e.g. many Irish companies have won contracts as part of the London Olympics), one logical area includes Find general information on Irish market the new push towards Sustainable conditions on UKTI?s website. The Doing Development and opportunities in the retrofit Business Guide for Ireland gives an overview of market. Ireland?s economy, business culture, potential opportunities and an introduction to other A recent announcement by one company relevant issues. seeking suppliers for multi-million euro projects in Dublin and Cork suggests that there is work out there. However, the sector remains in great difficulty and may still take some time to recover. UK Trade & Investment Sector briefing: Construction opportunities in Ireland Opportunities House Building Sector Procurement The Irish construction sector is in great There are many ways of conducting business in difficulty and is expected to continue this trend the Irish Construction Sector. This includes for the next two years (2010/2011). Recent direct sales, distributors, agents and attention has been focused on the consultants. However the most common housebuilding sector, which has seen a method is procurement. For private projects downturn in activity. Employment in the sector this is often via companies procurement has been falling since April 2008 and shows sections especially in larger concerns. There little or no sign of abating. The housing sector are many large, medium and small showed steeper falls in activity than the organisations that operate this way in Ireland. commercial and civil engineering sectors. In the public sector the main route for Observers say it indicates that the construction procurement is through the Office of Public slump is now likely to continue into 2011. Works www.opw.ie. There are also Public Property, and particularly the highly vulnerable Private Partnerships (PPP) operating in many housebuilding sector, remains the problem, as areas of construction (especially larger the number of new houses built more than projects). halved from 78,000 in 2007 to 25,000-35,000 for 2009. Further useful information can be found through the following: General Market Information There is more to the construction sector than For procurement on public contracts and housebuilding however. In 2008 the focus tenders in Ireland the main details are found shifted to roads, (?1.7bn) water and on www.e-tenders.gov.ie e-tenders has been wastewater facilities and social housing. developed by the Department of Finance and is A range of large infrastructure projects are still designed to help find and publish tender planned as part of the National Development notices on government and public sector Plan. Major road projects (non-motorway) are procurement across Ireland. planned or continuing across Ireland. This includes construction on many of the countries Another useful source of tender information is national primary routes. For more information the Irish Procurement portal, which provides a www.skynet.ie/~zoney/roads/road_prokects.ht useful guide to public sector procurement. ml www.procurement.ie. Market statistics With a turnover in excess of ?36bn, the If you have any questions on the opportunities construction industry employs 280,000 people above, contact the UKTI contacts named in this directly and a further 100,000 indirectly, report. Business opportunities aimed although this is reducing due to the current specifically at UK companies are added daily to economic conditions. The sector contributes UKTI?s website. These leads are sourced by our nearly ?12bn to the Exchequer annually. For staff overseas in British Embassies, High over a decade, the success of the Irish Commissions and Consulates, across all sectors economy (the ?Celtic Tiger?) has been at least and in over 100 markets. partially fuelled by the booming construction sector. Compared to an EU average of 7%, You can be alerted to Ireland/construction 14% of Ireland?s workforce was employed in business opportunities on a regular basis by the construction sector. registering on the UKTI website. Find out more on UKTI?s business opportunities service on the One quarter of Irish GDP is directly or indirectly UKTI website linked to the construction sector and one fifth of all government revenues depend on it. In 2005 construction output per head was approximately ?7,600 ? more than double the UK figure. In the same year, the housing completion rate was 21 units per 1000 population ? more than four times the European average. UK Trade & Investment Sector briefing: Construction opportunities in Ireland Major events and activities UKTI contacts Irish Building Exhibition Simon McKeever RDS Dublin Director Trade & Investment 7 ? 9 October 2010 British Embassy Dublin www.irishbuildingexhibition.com Tel: 00 353 1 205 3769 Email: simon.mckeever@fco.gov.uk Plan Expo Green Web: www.britishembassy.ie RDS Dublin 2 ? 3 November 2010 Andrew Evans www.plan-expo.com Trade Advisor British Embassy Dublin Tel: 00 353 1 205 3753 Find full details of all events in this Email: andrew.evans3@fco.gov.uk country and sector on the UKTI website. Web: www.britishembassy.ie New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis. UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small and Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events. UK Trade & Investment Sector briefing: Construction opportunities in Ireland Next steps - How UKTI can help British companies wishing to develop their This work is available via our Overseas Market business in the Irish market are advised to Introduction Service (OMIS) a chargeable undertake as much market research and service which assists British-based companies planning as possible in the UK. UKTI?s team in wishing to enter or expand their business in Ireland, with its wide local knowledge and overseas markets. experience, can provide a range of services to British-based companies wishing to grow their To find out more about commissioning this business in global markets. work, or accessing other UKTI services and specialist advice, please visit the UKTI website This can include: to find contact details for your local UKTI ? Provision of market information office. ? Validated lists of agents/distributors ? Key market players or potential customers in the Irish market ? Establishment of interest of such contacts in working with you ? Arranging appointments ? Organise seminars or other events for you to meet contacts and promote your company in the Irish market Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Construction opportunities in Ireland
Posted: 08 September 2010