“A modern, efficient and dynamic construction sector will help to power Ireland’s recovery”
Minister for Public Expenditure and Reform, Michael McGrath T.D., has welcomed the publication by the Department of Public Expenditure and Reform of the annual BUILD report.
BUILD 2020 gives an update on the construction sector as it emerges from the initial Covid-19 restrictions, as well as an overview of general trends in the sector and the latest public investment plans. The timely publication of the report follows the announcement this week of the July stimulus package which includes a significant increase in public investment for shovel ready projects to boost the sector.
While the full impact of Covid-19 on the construction sector will take some time to become evident, the latest data suggests that the sentiment in June returned to expansion for the first time in four months. Over 80 percent of construction firms were back trading in some capacity as of 28th June 2020. At the same time, 27,300 construction sector workers remained on the Pandemic Unemployment Payment as of 21st July 2020.
An efficient and sustainable construction sector is more necessary than ever in order to deliver the increased level of housing and infrastructure that will be required to support the country’s recovery from Covid-19.
This annual report seeks to contribute to the evidence base informing Government and the construction sector on the performance of the industry. BUILD 2020 assesses the industry’s capacity, as well as highlighting possible constraints, risks and opportunities.
Additional public investment has already been provided in 2020 in direct response to Covid-19 and through the recent July Stimulus. Public capital expenditure is planned to increase by 12 percent in 2021 to over €9.1 billion.
In spite of Covid-19, public investment in construction in Ireland in 2020 and 2021 will remain among the highest in the EU. This investment is required for the development of new social, economic and climate infrastructure. Grasping these opportunities requires overcoming the significant challenges posed by Covid-19 as well as increasing innovation in the construction sector. Both Government and industry are undertaking a wide range of measures to address these risks.
The following four elements will continue to underpin the approach adopted going forward: