Construction in Ireland Key Trends and Opportunities to 2017
The Irish construction industry valued EUR10.9 billion (US$15.2 billion) in 2012, after declining at a CAGR of -28.25% over the review period (2008–2012). All construction categories registered negative growth, largely as a result of the economic slowdown experienced after the financial crisis and austerity measures implemented by the government. The Irish economy entered recession in 2008 and contracted by -5.2%. In 2009, the financial crisis also severely affected the country's economy. Ireland's GDP registered a growth rate of 1.4% and increased in value from EUR156.5 billion (US$207.8 billion) in 2010 to EUR158.7 billion (US$221.1 billion) in 2011. Ireland's budget deficit stood at 8.2% of its GDP in 2012, well above the EU's limit of 3%. The government plans to implement budget cuts and tax increases to reduce the deficit to 7.5% of GDP in 2013 and less than 3% by 2015. The global financial crisis adversely affected consumer confidence, causing a decline in investment in the construction industry.
•This report provides a comprehensive analysis of the construction industry in Ireland:
•Historical (2008-2012) and forecast (2013-2017) valuations of the construction market in Ireland using the construction output and value-add methods
•Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type
•Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
•Analysis of key construction industry issues, including regulation, cost management, funding and pricing
•Assessment of the competitive environment using Porter’s Five Forces
•Detailed profiles of the leading construction companies in Ireland
•Profiles of the top ten construction mega-projects in Ireland by value
• The Irish construction industry valued EUR10.9 billion (US$15.2 billion) in 2012, after declining at a CAGR of -28.25% over the review period (2008–2012). All construction categories registered negative growth, largely as a result of the economic slowdown experienced after the financial crisis and austerity measures implemented by the government.
• Commercial construction recorded a CAGR of -32.93% during the review period, the largest decline out of all construction markets in Ireland. The Irish retail sector has seen subdued levels of investment since 2008; fear of government spending cuts and tax hikes are discouraging businesses from making large investments. Consumer spending is cautious, owing to high unemployment, low wage growth and a depressed economic outlook.
• The country’s budget deficit stands above the prescribed limit of 3%, which has forced the government to implement austerity measures including health and education sector cuts. Consequently, the institutional construction market is expected to record a slow CAGR of 0.06% over the forecast period, to value EUR1 billion (US$1.4 billion) in 2017.
• The Irish seasonally-adjusted standardized unemployment rate stood at 14.8% in 2012, while the budget deficit reached 8.2% of GDP in the same year. Moreover, the domestic demand for goods and services declined.
• The government has announced real estate investment trusts and reduced VAT for the tourism sector in order to support the commercial construction market.
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