How construction in Ireland is changing
€32bn, Employed With Was Ireland’s Estimated Output At Denis Picture: Of 2022 Value More Industry In The Overall 167,000 In The Minihane Than Construction
Having gained extensive experience in the region’s construction industry from an end user rather than a direct industry perspective, Joanne Treacy’s accumulated insights gained from working in other sectors have provided a unique understanding of both Cork and the wider region’s infrastructure successes and challenges.
“I have had the advantage of having been an end user, so to speak, so I am aware of the importance of being kept informed of industry changes, regulation updates, legislative variations and the impacts policies can have.
"My experience of being a ‘customer’ has helped me identify with the real challenges and the impacts that those have on any industry member, as well as the benefits of being part of the progress we can see the industry has made in our region”.
Her experience ranges across leadership, industrial relations and human resources. The region has recently expanded to include South Wicklow, Wexford, Kilkenny and Carlow, as well as the existing counties of Cork, Kerry, Limerick, Clare, Tipperary and Waterford.
“While the area has expanded, there are similar issues facing the industry across the country,” Ms Treacy explains. “They are not unique to one county or region, so my approach is to engage with the various branches, listen to their key objectives and support them in their goals of delivering critical projects regardless of their locality”.
Forty per cent of construction companies reported an increase in turnover at the end of 2022, with almost one in four expecting turnover to increase in the first quarter of 2023, according to the Construction Industry Federation’s latest economic outlook.
Rising costs continue to present a challenge to the industry, with 88% surveyed experiencing an increase in the cost of materials in the last quarter of 2022, and 67% expecting increases to continue into 2023.
More than three-quarters of companies reported sustainability was now a very important part of business, with more than half seeing an increase in demand for sustainable construction from clients.
The majority of companies expect the move to sustainability to increase the demand for off-site construction manufacturing, with 45% expecting off-site construction methods to become more mainstream this year.
The overall value of Ireland’s construction output in 2022 was estimated at €32bn, with more than 167,000 employed in the industry, about 10% of which are employed in Cork.
The city is on target to be the fastest-growing urban area in Ireland by 2040, with a significant population increase.
"To meet the needs of those living and working in Cork City and county we must emphasise the need for timeframes to be put in place for decision-making so delivery can progress and we can attract more foreign direct investment. Any delays with decisions on infrastructure and investment will only lead to more societal and economic issues”.
She adds the region has a proven track record, and has been hugely successful in attracting inward investment: “With the talent and skills in the region, thanks to excellent colleges and universities, the availability of an able workforce is a given.
The fact nine out of 10 top life sciences companies in the world are located in Cork is a testament to the fact the infrastructure has been here to date and the expertise is on hand. "A number of key issues dominate the construction sector in Cork, Ms Treacy points out:
“The biggest challenge is not investment, rather the ability to move at a reasonable pace to progress swiftly and smoothly.”
Moving the Port of Cork to the designated site in Ringaskiddy will have hugely positive ramifications for both city and county.
“The city will be opened up for new developments, less traffic and heavy goods vehicles, smoother transport of goods and better air quality in the city as a result.”
However, delays on the M28 road infrastructure have stalled this project significantly and are a cause for frustration among developers, retailers, investors, potential employers and employees.
“The Government has committed €19m to the road upgrade which was to be implemented by 2026, but with hold-ups in land acquisition and route selection among other areas, it seems unlikely that this timeline is currently realistic.”
Given rising inflation, cost increases across every sector rising and the attendant labour and material budget increases, acting sooner rather than later yields optimal return and results, she believes.
"Consequently, housing and commercial developments are unlikely to commence until the transport network is upgraded. Cork is ideally placed for future development opportunities but we must progress with decision-making and open doors to ensure we retain our attractiveness for FDI and maintain our workforce in the region.”
Other regions have been able to capitalise on recent opportunities, she highlights, with Limerick in particular quick to respond — and witnessing significant investment as a result.
“There are a number of large-scale construction projects currently ongoing in the Mid-West that are creating employment in construction, as well as creating opportunities for future investment. Construction Industry Federation Southern Region members are keen to support local government initiatives to develop vital infrastructure and to build more homes for more people,” she adds.
The CIF Southern Region annual dinner on May 12 is already a sell-out event, with 300 delegates from the industry due to attend.
“The annual construction dinner in Cork is a great occasion for stakeholders and industry representatives to meet, network and discuss some of the challenges and opportunities within our region,” Ms Treacy says, adding the CIF Southern Region hosts a wide range of events throughout the year incorporating the various needs of the industry, its stakeholders and the public.
“We are currently in the process of planning our Southern Construct Summit, which is due to take place in September this year and will focus on how we can support Cork’s growth into the future”.
Looking forward, the CIF Southern Region is keen to mobilise the ambition and opportunity as part of its campaign to support the construction industry, as well as industry networking.
“We are meeting regularly with Government officials and ministers to ensure open communications and provide insights on the challenges particular to the region and to our sector. Our mandate is clear — to harness the opportunity for all in our region.
"Decision-making processes must be defined by time also, so that lags and slippage on timelines do not impede successful developments, and diminish the region’s significant competitive advantage.”