The majority of growth we have seen in the last 2 – 3 years has been largely held in the commercial sector. This level of growth could be maintained if we take the opportunity to improve the infrastructure of schools, housing and transport.
If the construction industry is to potentially benefit from Brexit it will probably happen via Foreign Direct Investment (especially the financial service sector).
However, this could be ineffective due to lack of infrastructural investment and the failure for housing to reach the target of 25,000 plus homes per annum.
As we look across the skyline of Dublin with the ever-increasing number of cranes which are mainly building commercial office blocks it is obvious within the construction sector that there is huge scope for civil engineering projects which is currently posting the weakest rise in activity.
The infrastructure required to support Ireland’s growth lies firmly on the shoulders of the Government.
A lot of construction businesses are expanding their services into the wider European market where there is plenty of room for firms with specialist knowledge.
Many of our engineering and construction companies have successfully been involved in European projects that can be highly lucrative.
There are no competitive barriers to working in Europe, it’s about being able to demonstrate you have something local firms are not capable of.
We all know construction is a high-risk industry and many people outside the industry think that contractors are crazy for taking on such risks. But construction companies don’t see it that way, they relish in risk. After all risk and reward come hand in hand.
However that’s not to say it’s a smooth ride for contractors – they are always placed in the middle of a scenario where they do not have full control. For example, there are rising costs, market forces, labour market issues and simply getting paid!
In this regard, a contractor’s bonding capacity is critical to winning contracts and in turn, their financial strength and fiduciary strategy help them get their bonds.
Partnering with global surety providers who understand each countries laws and regulations is key to protecting their organisations as they venture into unknown territory.
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