Global insight

Responding effectively to risk on complex construction projects

Derry Scully, Group President at Linesight, reviews the Irish construction industry performance in 2018 so far, and looks forward to what we can expect throughout the remainder of 2018 and beyond. 

The Irish economy is forecast to continue to grow strongly for the remainder of 2018 and into 2019. The ESRI recently updated its prediction for GDP growth to 8.9% in 2018, followed by 4.5% in 2019. This prediction is informed by stronger-than-expected domestic consumer sentiment, as well as underlying trends in taxation receipts, and is based upon the assumption that a Brexit deal will be in place by March 2019. 

At these rates, Ireland will have the fastest growing economy in the EU, with growth rates at almost twice the Eurozone average.

The economy is approaching full employment with unemployment rates expected to decline to 5.6% in 2018 and 5.0% in 2019. In August, the CSO published statistics showing that the total number of people employed in Ireland reached over 2.25 million in the second quarter of 2018. This is a 3.4% increase from the same quarter in 2017 and represents the highest total ever recorded.

At these rates, Ireland will have the fastest growing economy in the EU, with growth rates at almost twice the Eurozone average.

The economy is approaching full employment with unemployment rates expected to decline to 5.6% in 2018 and 5.0% in 2019. In August, the CSO published statistics showing that the total number of people employed in Ireland reached over 2.25 million in the second quarter of 2018. This is a 3.4% increase from the same quarter in 2017 and represents the highest total ever recorded.

Against this background, it is not surprising that construction is booming also, with most sectors showing significant growth. CSO indices published in June, with some caveats, show that the volume of output in building and construction increased by 7.4% in the first quarter of 2018 when compared with the preceding period. This reflects increases of 5.6%, 5.5% and 1.1% in the volume of residential building work, non-residential building work and civil engineering work respectively.

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