As we just exit Q2 in 2021, the Irish Construction Industry has been hit with a serious of hammer blows over the past 18 months. The Government lockdown of this year from 8th January to 5th April means the construction industry will have been shut for 19 weeks since the pandemic started. This has given rise to widespread repercussions for construction firms, workers and clients.
It is estimated that construction output will be €21.6bn in 2021, which would be down €3bn from 2020 and €5bn from 2019 (pre-pandemic). A recent CIF Survey reported price increases for steel, timber, insulation, cladding and cement aggregates. It also reported delivery delays as a result of Brexit.
SCSI Tender Price Index
The latest SCSI Tender price index was issued in April 2021 and shows that the national annual rate of inflation was 2.2%, significantly below the “pre-Covid” tender price inflation level of 6.3% in 2019.
The rate of inflation in Dublin was reported at 0.9% for the first six months of 2020 and 1.5% for the second half of the year. The slight upward shift in tender inflation sentiment can be largely attributed to the re-opening of the sector following easing of Covid restrictions in summer 2020.
BMP have continued to try and develop our business in these most difficult circumstances, retaining experienced staff and still recruiting young candidates to ensure that we fulfil the high standards of performance that we set ourselves. The Irish marketplace is relatively small and it is massively important to us that we build on existing relationships with Design Teams and Clients.
Delivering successful projects for TU Dublin in Grangegorman and VHI in Limerick and Carrickmines and numerous healthcare projects for St. James’s Hospital has been very rewarding over the past 12 months, as has the roof refurbishment of St. Patrick’s Cathedral in Dublin.
We hope that as a company we keep rising to all these challenges in the next 12 months
Damien Morgan MSCSI MRICS Director
Brendan Merry & Partners