Construction sector forecast to grow by 26pc over the next two years

Construction Sector Output Grows by 10% in 2014, Forecasts Strong Growth Ahead

Paragraph: According to a report released by the Society of Chartered Surveyors Ireland (SCSI), the volume of output in the construction sector witnessed a significant growth of 10% in 2014, reaching €11 billion. Furthermore, the report predicts a substantial increase of approximately 26% in the sector’s output over the next two years.

Housebuilding and Commercial Property to Drive Future Growth

Paragraph: The SCSI’s report, titled ‘Irish Construction Prospects to 2016’ and prepared in collaboration with DKM Economic Consultants, highlights that the growth in construction output will be primarily driven by increased activities in housebuilding and commercial property sectors. These sectors are expected to contribute significantly to the expansion of the construction industry.

Positive Signs Reflecting Economic Improvement and Sector Confidence

Paragraph: Andrew Nugent, the incoming president of the SCSI, emphasizes the positive implications of the 10% growth in the construction sector. He states that this growth is indicative of improved economic conditions and increased confidence within the industry. However, Nugent also notes that the sector’s growth is still relatively modest, considering its current output accounts for only about 7% of Gross National Product (GNP).

Striving for Sustainable Growth Levels

Paragraph: Nugent points out that while the recent growth is encouraging, the construction sector’s output is still below the sustainable level recommended by European standards. The current 7% of GNP falls short of the 12% threshold deemed to be a sustainable level. This suggests that further progress is needed for the construction industry to reach a more stable and robust state in line with European benchmarks.