CONSTRUCTION SECTOR REVIEW
“The Northern Irish construction industry
to trade with the UK, while also staying in the EU single market. In the 12 months to the end of June 2023, total construction volume output in Northern Ireland was up 7.8% year on year. Growth was primarily driven by repair and maintenance work, which in 2023 saw a year-on-year increase of 17%. Infrastructure saw an increase of 9.3%, slowing to only 2.6% in the last quarter. Tender price inflation in Northern Ireland rose 9% over the course of last year, down from 2022’s figure of 12%. Overall material and labour costs are still rising, said AECOM, but at a much slower rate than over the past two years and at a lower rate than general inflation within the wider economy. While the type of projects and composition in costs between labour and materials will change, tender price inflation is expected to continue to ease over the course of 2024 to an average of 3.1%. Jody Wilkinson, Director AECOM Northern Ireland, said, “While there are signs in the wider UK economy that a
slowdown is coming, Northern Ireland’s economy is more closely related to the Republic of Ireland which remains strong. “The Northern Irish construction industry continues to adapt to change in supply chains, inflation and shifting demand between public and private sectors. It seems to be holding up. “The higher growth, more independent private sector will benefit from foreign direct investment, particularly from the US. “It is vital that this year brings renewed determination by industry and investors alike to seize on Northern Ireland’s decarbonisation potential. Northern Ireland was the last part of the UK to pass its own climate change legislation and as a result is decarbonising at a slower rate than the rest of the UK. “With the long-awaited introduction of the Climate Change Act in 2022, energy transition policy for Northern Ireland is now in place. Time is of the essence as we have much catching up to do.” T: +44 (0)28 9060 7200 www.aecom.com
continues to adapt to change in supply chains, inflation and shifting demand between public and private sectors.”
• Total construction volume output +7.8% • Tender price inflation +9% • Repair and maintenance output +17% • Infrastructure output +9.3% • Housing output +15.1%* Northern Ireland construction sector performance 2023
* 12 months to August 2023 (all other figures for 12 months to June 2023)
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