A majority of chartered surveyors expect construction activity to increase in the year ahead, but caution that skills shortages as well as planning and regulatory challenges continue to be the main constraints on output.
The latest Society of Chartered Surveyors Ireland / PwC Construction Market Monitor shows 56% of chartered surveyors saw an increase in construction activity in the last six months.
This was up from 46% the same time last year.
The survey also reveals that 71% of chartered surveyors have seen an increase in private housing over the last six months, an increase of 13%.
68% have seen an increase in private commercial building - an increase of 10% - while 44% have seen an increase in infrastructure, up 14%.
But the number of surveyors experiencing skills shortages rose by 7% in the last six months to 81% and Kevin James, Chair of the Quantity Surveying Group within the SCSI, said the skills shortage issue will have to be addressed in the short term.
He noted that quantity surveyors and commercial managers are in very short supply and the availability of skilled trades such as plasterers, carpenters, electricians, bricklayers and plumbers is an acute challenge.
"While 70% of surveyors expect headcount to rise in the year ahead - an increase of 9% - it remains to be seen where the additional labour will come from. It should also be borne in mind that high accommodation costs are a significant deterrent to overseas hires," Mr James added.
Meanwhile, 77% of survey participants said that they had experienced problems with planning and regulations during the last six months.
While this is the same as 2017, it means that planning and regulatory challenges have been identified as the next biggest challenge after the skills shortage.
Despite these concerns, today's survey suggests a positive outlook for the year ahead for the Irish construction sector.
90% of firms expect activity increases while 63% expect increased profits.
"For an open economy that relies heavily on foreign direct investment and exports, it is critical that we have the housing and infrastructure to support it", commented Joanne Kelly, from PwC Ireland.
"While the report outlines some acute challenges, it is encouraging that plans have been outlined in Government's Project 2040 Plan for significant infrastructure and housing investment," she added.
