Direct employment in the construction industry has decreased by 130,000 jobs since 2007, according to a new study.
The report, compiled by the construction consultancy firm Davis Langdon PKS (DLPKS), forecasts a further 40,000 jobs will be lost in the sector this year.
In their annual review of the sector, DLPKS predict that the Irish construction industry will see a decline of approximately 23 per cent in 2010.
From a high of €38 billion in 2007, the sector is predicted to have reduced in value to the region of €19 billion in 2009 and is expected to fall by a further €14 billion this year.
According to Davis Langdon PKS, direct construction employment totalled 260,000 in the second quarter of 2007 and is now at about 130,000.
In addition to the decline in employment, there was a 16 per cent reduction in tender prices last year with a 6 per cent fall forecast for this year. During the same period, there was a 4.8 per cent drop in material costs.
Commenting on the figures, DLPKS’s managing director Norman Craig warned the construction sector will continue to falter without support and said the future strength of the industry and the protection of skilled jobs is dependent on the Government spending its full allocation on the Public Capital programme (PCP) during 2010.
“It is imperative for the construction industry, when we have seen such a dramatic cut in public capital expenditure coupled with a near standstill in private sector investment, that the PCP delivers on spending its full allocation. If this is achieved it will help to slow down the huge numbers joining the dole queues every week and also help Government to provide much needed public infrastructure at incredible value for money,” he said.
Mr Craig also echoed the recent call by the Society of Chartered Surveyors urging the Government to appoint a chief adviser to head a new Construction Industry Consultative Council which would be tasked with promoting a sustainable industry over the medium to long term.
He concluded by stating that NAMA may present some opportunities for the construction industry in the coming years, particularly in the planning area, and that this should not be missed in rectifying the oversights of the past.
“There are useful lessons to be learned in this regard from other countries like the Netherlands, where Active Land Management is practiced by the state. This may be helpful in the delivery of vital social infrastructure such as schools, healthcare facilities and social and affordable housing,” said Mr Craig.
