THE BIG INTERVIEW
provide the infrastructure to support housing developments. We can already see the impact, with a lower number of plans submitted, approved and projects starting on site compared to Q1 2023. The devolved government returned to NI in February after a 24-month hiatus. Following the return, CEF - which represents around 70% of construction businesses in the province - set out a 10-point plan for stimulating the country’s construction sector. The list includes planning reform, fresh housing targets and the creation of an independent infrastructure commission. In May 2023, the Department of Education’s process for new buildings at 28 post-primary schools was paused but it has been announced that seven new-build projects will be progressed. The tendering procedure commenced in March. What are the differences and similarities between the markets in NI and ROI? As part of the UK, NI’s construction market is influenced by UK-wide economic policies, and funding and regulatory frameworks are aligned with UK standards. The ROI operates with the EU framework, benefiting from EU funding programmes and adhering to EU regulations. This affects material costs and worker mobility, as well as market access. The Irish government’s Shared Island Fund benefits both NI and ROI. This fund earmarks a substantial amount of funding
for cross-border infrastructure projects. For example, €600m has been allocated for the A5 Western Transport Corridor Scheme – a crucial road project aimed at improving safety and connectivity in the region. These investments aim to boost the all-Ireland economy and improve infrastructure throughout the island. Both markets are increasingly focusing on renewable energy projects driven by the need to reduce carbon emissions. Major infrastructure projects are crucial in both NI and ROI too, with significant investments in transport, education and health infrastructure, which are providing consistent demand for construction services. The whole island is facing increasing demand for private housing, including affordable housing solutions and this has seen a growth in residential construction. There is also a shared focus on introducing digital technology into building practices as well as green building techniques. Both markets have shown resilience in bouncing back from economic downturns, supported by robust construction sectors. Government support packages and a steady pipeline of private projects contribute to this. What is driving NI firms’ success in securing major projects? NI firms often possess expertise in areas such as engineering, construction and infrastructure development, with technical
capabilities and knowledge that contribute to their success in securing major projects. A strong reputation and a proven track record of delivering high-quality projects play a crucial role in winning large contracts. NI firms that have successfully completed previous projects are more likely to be trusted and awarded new opportunities. Furthermore, NI firms often embrace innovation and leverage technology to enhance their competitiveness. This includes adopting advanced construction methods, utilising digital tools for project management and implementing sustainable practices. What sectors offer greatest opportunity for NI construction firms? The private housing sector is expected to continue its growth trajectory, which is being fuelled by demand for new homes across Northern Ireland. This year so far, most of the investment in construction has been focused on the residential sector, with £249.6m of a total of £394.1m allocated to scheme housing. There has also been a great investment in the education sector, with £304.5m being dedicated to school infrastructure. Examples include the Ballycastle Shared Education Campus in Co Antrim and the new Strangford Integrated College in Co Down. The industrial sector takes the third place this year in the investment ranking, with £262.7m allocated to factory, warehouse and storage projects. There is also growing interest in the repair and maintenance sector, which we expect to steadily grow as aging buildings require modernisation. The growing focus on renewable energy sources also contributes to a higher number of projects in renewable energy infrastructure, such as wind farms, solar parks and hydroelectric projects, as they are driven by the need to reduce carbon emissions to meet the government’s net zero target by 2050. This includes onshore wind energy with projects like the Slieve Kirk Wind Park, contributing significantly to Derry/Londonderry’s renewable energy capacity.
Office 41, Banbridge Enterprise Centre, Scarva Road Industrial Estate, Banbridge BT32 3QD. T: +44 (0)28 4064 8110 - E: sales@cisireland.com www.cisireland.com
www.nibuilder.co.uk
FOLLOW US ON:
NI BUILDER | 47
Made with FlippingBook - professional solution for displaying marketing and sales documents online