The construction sector in Northern Ireland is struggling against a raft of headwinds and activity is expected to ease further for the remainder of the year.
That’s according to industry body RICS (Royal Instutute of Chartered Surveyors) which reported that workloads amongst its members had fallen for the fourth consecutive quarter in the three months to the end of March.
It put the malaise down to the inflationary environment which is driving the cost of materials higher and resulting in tightening profit margins. According to the quarterly RICS survey of its members in the construction sector, the situation in Northern Ireland appears to be more difficult than for those across the rest of the UK
All subsectors in the province reported a decline in workload, including public housing, private housing, private commercial and infrastructure.
Meanwhile, the majority of construction companies who responded to the survey reported a slide in profits and, worryingly, they are expected to remain under pressure.
Jim Sammon, RICS NI Construction Spokesman, said the industry is facing headwinds, not helped by a lack of leadership at Stormont.
“The industry continues to face significant challenges with cost increases and declines in workloads, and continued skills shortages,” he said. “We can see that surveyors in Northern Ireland aren’t as optimistic as can be seen in other parts of the UK.
“Northern Ireland hasn’t had a functioning government which makes things more challenging for the construction sector. Public sector work is a huge part of construction activity in NI and without an Executive, there is a lack of certainty about budgets and the pipeline of work. RICS in Northern Ireland is calling for a working NI Executive to ensure that necessary investment in the economy and our infrastructure can be delivered efficiently and in a timely way.”
