NEWS
OVERALL CONSTRUCTION WORKLOADS HAVE FALLEN FOR A SIXTH CONSECUTIVE QUARTER, WITH HOUSING AND PUBLICLY FUNDED PROJECTS BEARING THE BRUNT OF THE SLOWDOWN… Northern Ireland construction workload balance hits a decade low
A slowdown in house building and reduction in public investment is said to have driven down the construction workload balance in Northern Ireland to its lowest level, outside of lockdowns, in more than 10 years. The region’s balance is now significantly more negative than all other UK regions, according to the RICS Construction Monitor Q3 2023 for Northern Ireland. A net balance of -38% of respondents in NI reported a fall in workloads, down from -24% in the previous quarter. This is
balance of -7% expecting a decline, down from 4% in Q2. Surveyors in NI are less optimistic than respondents in the rest of the UK where a net balance of 6% expect a rise in workloads over the next year on average. According to the latest survey, NI respondents indicate that profit margins will continue to be squeezed over the 12 months. A net balance of -45% of respondents expect profit margins to fall, compared to -29% in Q2 and -41% in Q1. Surveyors in NI continue to note a shortage in labour, albeit the figures appear to be gradually
the lowest the workload balance has been since Q2 2020, when the industry was impacted by Covid-19 restrictions, and before that Q2 2012. All subsectors reported a decline in workloads in Q3. With publicly funded work, a net balance of -40% of surveyors reported falls in public
Jim Sammon, RICS NI construction spokesman.
“Surveyors in NI continue to note a shortage in labour, albeit the figures appear to be gradually easing quarter on quarter.”
easing quarter on quarter. Looking at construction professionals, 48% of respondents reported a shortage, down from 50% in Q2, with 50% noting a
optimistic about the future of the market. “The lack of a functioning NI Executive continues to have a significant impact on the local construction sector by causing ongoing issues such as funding concerns and delayed procurement processes which is subsequently clouding the visibility on future workloads. “We very much need a working NI Executive to ensure that necessary investment in the economy and infrastructure can be delivered efficiently and in a timely way given the importance that public sector work plays in our local industry.” T: +44 (0)28 9592 1017 E: loconnor@rics.org www.rics.org
shortage in bricklayers, down from 53% in Q2 and 56% in Q3. Half of respondents reported a shortage in quantity surveyors, on par with Q2 but down from 64% in Q1. Jim Sammon, RICS NI Construction spokesman, said, “With rising costs, ongoing skills shortages, and wider economic challenges, the results of the latest survey are unsurprising with workloads declining, and surveyors less
housing, -12% in infrastructure and -28% in other public works. Looking at private works, a net balance of -29% reported a fall in private housing workloads, -50% in private commercial, and -45% in the private industrial subsector. Looking ahead, NI respondents expect workloads to fall over the next 12 months with a net
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