Access to skilled labour was the top worry of three quarters of construction firms here between April and June, new research has found.
But a third said despite the talent crunch, they still managed to increase their turnover compared to the same period last year, with a similar proportion expecting it to continue to increase into the third quarter.
The data is contained in the latest Construction Industry Federation's Economic Outlook Survey, which polled 210 firms.
"Early data for 2023 points to positive growth in the construction sector but building and construction investment has not yet returned to pre-pandemic levels," said Hubert Fitzpatrick, Director General of the Construction Industry Federation.
There is concern though about the effect of the rising cost of labour, with three quarters saying it had increased in the second quarter and a half predicting that would continue.
Raw materials are also a worry, with 60% saying the cost of them had risen.
Overall, access to skilled labour, securing a healthy profit margin and the increased cost of raw materials remain the three most significant challenges.
"Access to a skilled workforce remains a concern in a competitive employment market for construction and other sectors," said Mr Fitzpatrick.
"Government and industry are working together to increase pathways into construction and to attract more workers from Ireland and overseas, while upskilling the current labour force to meet new demands and technologies."
The rising costs are hitting tender prices, with 60% admitting that they had gone up year on year and two out of every five predicting that would continue.
28% said the total number of staff they employ had increased during the period.
