Irish construction firms shift focus to international projects due to planning uncertainty at home.

Irish construction firms are increasingly focusing on international projects due to planning snarl-ups and uncertainty in the domestic infrastructure pipeline. One in four big construction firms are currently exporting their services, with data centres and pharmaceutical plants being the most common foreign projects delivered in the first quarter of the year. The CIF director general attributes the trend to "persistent uncertainty in Ireland's infrastructure pipeline" and calls for removal of barriers such as planning delays and lack of zoned land.

Irish construction firms are increasingly focusing on international projects due to planning snarl-ups and uncertainty in the domestic infrastructure pipeline. According to the Construction Industry Federation (CIF), one in four big construction firms are currently exporting their services, with data centers and pharmaceutical plants being the most common foreign projects delivered in the first quarter of 2025 [1].

The CIF's latest outlook survey revealed that export revenues remained stable for half of the surveyed firms in the first quarter, while 31% reported an increase. Almost half of the respondents anticipate a jump in export revenues in the second quarter [1]. This trend is attributed to "persistent uncertainty in Ireland's infrastructure pipeline" by CIF director general Hubert Fitzpatrick [1].

The primary barriers to delivering projects in Ireland include persistent planning delays, lack of zoned land, and slow delivery of enabling infrastructure like water and electricity. Fitzpatrick emphasizes that these constraints are not due to workforce capacity but rather "key barriers" outside the industry [1]. Just 29% of construction firms reported a year-on-year increase in new orders in the first three months of 2025, with half of respondents in the civil engineering and infrastructure subsectors experiencing a decrease [1].

The housing sector also faces significant challenges. A stalled social housing project of nearly 500 homes was halted by the Department of Housing due to cost concerns. The project, planned under a public-private partnership (PPP) scheme, was set to deliver homes in Dublin, Kildare, Wicklow, and Sligo [2]. This decision has raised questions about the government's strategy for future large-scale social housing projects, with four upcoming PPPs also being stalled for review [2].

The CIF criticized the government's decision, stating that it further exacerbates uncertainty in the construction sector and undermines incentives for investment and expansion [2]. The cancellation of the project has impacted approximately 1,400 employees, with contractors reducing operations and reallocating resources abroad due to the absence of a reliable project pipeline [2].

The social housing PPPs involve complex structures with up to five different partners, including developers, not-for-profit housing bodies, and maintenance companies. The CIF supports the use of PPPs, arguing that they offer greater value for money by covering a broader scope of services and ensuring cost certainty for the state [2].

The housing crisis in Ireland has seen a major demand for construction workers, but the setback in the social housing project has led to contractors reducing their operations in the country. The Department of Housing has not responded to requests for comment on the decision.

References:
[1] https://www.irishtimes.com/business/2025/06/20/irish-construction-firms-working-on-projects-abroad-amid-planning-snarl-ups/
[2] https://www.thejournal.ie/housing-ppps-6735316-Jun2025/