Builders remain positive about the industry’s health despite the rising cost of labour and materials, according to a survey by a construction sector representative body.
The Construction Industry Federation (CIF) quarterly economic outlook, published on Monday, found increases in house building, civil and general construction, but fewer office projects.
According to its survey of 220 member companies, more than half are positive about the industry’s health, despite three quarters reporting further increases in labour costs and two thirds highlighting rising raw materials prices.
Hubert Fitzpatrick, CIF director general, warned that inflation could threaten some projects’ viability. “Regrettably, increasing costs in the form of labour and raw materials continue to put upward pressure on pricing across all sub sectors,” he said.
One third of those surveyed reported that sales had risen year-on-year in the three months ended September 30th, while 26 per cent expected turnover to rise in the current quarter.
One in four companies had hired more workers during the third quarter of the year, while 22 per cent predicted that this trend would continue.
However, companies warn that planning delays could slow down big civil engineering projects, which are mostly State-funded infrastructure.
These delays, stalled public projects, funding and a skills squeeze will continue to challenge builders through next year, the CIF outlook predicts.
Some respondents believe that their pipelines of future work will improve in the first half of 2024, says the survey.
Mr Fitzpatrick said given global uncertainty and economic headwinds, investment funds announced by Government in the budget would help create more certainty.
