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Executive action needed to tackle downturn in fortunes of construction sector
Published in January, the latest CEF Construction Survey reflected a clear view within the Northern Ireland construction industry that the NI Executive must urgently agree its 2025/26 Budget to boost flagging confidence in the sector. It should also use the first half of the year and the UK Government’s Comprehensive Spending Review to chart a path towards a systemic and long-term change in how we deal with the decades of underfunding of our water and wastewater system. The survey, which collected data from NI-headquartered firms which have a collective annual turnover of approximately £2.8bn, covers 2024 and reflects on many of the key challenges that contractors, civil engineers and homebuilders are facing currently. The main findings included: • 35% of respondents said their turnover had increased by at least 10% in 2024; however, 30% said their turnover was down at least 10% on 2023. • 40% said that their profit margins were worse in 2024 than 2023, while 25% said profit margins
were better year on year. • Over the last year, only 65% of firms were operating at full or almost-full capacity. On the industry’s skills challenge, the four top priorities identified were: • Attracting new entrants by promoting construction careers in schools and communities. • Identifying skills needs and providing specific training tailored to the industry. • Development of entry-level skills programmes. • Enhancing the understanding of the routes into the construction industry. Inflationary issues continue to cause concern • 75% of respondents said they now had a moderate impact but were manageable, and 15% said they were continuing to have a serious impact causing financial concern. The industry’s three main priorities for the NI Executive in 2025 are: • Urgently agree the NI Executive’s 2025/26 Budget and ensure that it funds NI Water to its full PC21
need for 2025/26 as set out by the Utility Regulator. • Commence an independent, expert-led review of the
governance and funding of NI Water, as recommended
by the NI Audit Office, to ensure it can meet the long-term needs of key economic drivers such as homebuilding. • Once the UK Government publishes its Comprehensive Spending Review, the Executive must immediately begin a consultation on a multi-year budget through to 2029, agreeing this by mid-summer, at worst. When looking to the GB and Ireland markets, three main reasons were given as to why they are more attractive for contractors than the NI market: a more secure pipeline, stronger profit margins and company growth in new markets. Looking to the next six months, the key challenges identified are: • Impact of NI Water underfunding. • Access to skilled labour. • Insufficient public sector budgets leading to a limited procurement pipeline.
Open Doors initiative coming to Northern Ireland over March 18-22
Construction Futures has partnered with Build UK to bring the successful Open Doors initiative to Northern Ireland for the first time. The initiative offers schools and colleges the chance to visit construction sites and offices for tours and interactive sessions, helping to inform and inspire the next generation about careers in construction. The initiative will take place from Tuesday 18th to Saturday 22nd March, with a variety of construction companies hosting over 30 events across NI. With the fantastic response from both employers and the education sector, it is hoped that the initiative will continue to grow in future years, providing even more opportunities for young people to explore careers in a growing sector. For information, visit www.constructionfuturesni.com/open-doors-live-bookings
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