**Dublin**: Paul Sheridan of the CIF predicts a positive outlook for construction in 2025, yet warns that civil engineering growth is hindered by planning inefficiencies and infrastructure deficits, particularly in water services, which could impact housing and foreign investment opportunities.
Paul Sheridan, the Director of Main Contracting at the Construction Industry Federation (CIF), has provided an insightful analysis into the construction landscape for the year 2025, highlighting a generally positive outlook for construction activity. However, he noted concerns regarding growth in the civil engineering sector.
Sheridan emphasised the significant role of the government in establishing the necessary conditions to foster construction activities both in the upcoming year and beyond. The critical challenge he identified is the delivery of essential infrastructure, particularly concerning water and energy supplies.
Both Uisce Éireann, which oversees Ireland’s water services, and ESB Networks are currently grappling with inefficiencies within the Irish planning system. Speaking about Uisce Éireann’s operational limitations, Sheridan pointed out, “Uisce Éireann is very much hamstrung because it cannot raise its own funds. It must rely on a convoluted bureaucratic system to access funding from government.” This detailed insight underscores the intricacies faced by the authority which could impede progress.
There is significant concern regarding the recently announced €1 billion allocated by the government for water and wastewater infrastructure, with fears that these funds may not result in tangible improvements such as new pipe installations. Sheridan noted that the current lack of water capacity is a critical factor hindering the issuance of planning permissions for housing developments, adding that without addressing these water infrastructure issues, meeting housing targets will be unrealistic.
Further, the CIF’s members were assured that Uisce Éireann would increase its infrastructure delivery capabilities, yet many now find that the entity is actually scaling back its efforts at a moment when expansion is crucial. This situation has led contractors, faced with numerous “shovel-ready” projects on hold, to seek opportunities abroad due to a lack of work available domestically.
Sheridan articulated the broader implications of such underinvestment, signalling risks that extend beyond the water sector and could negatively impact foreign direct investment (FDI) and other areas of domestic economic activity. He refuted claims that additional capital funding for Uisce Éireann might cause overheating in the economy, arguing, “There are approximately 6,500 skilled employees in the contracting water infrastructure sector spread across Ireland. This is hardly enough to overheat an economy suffering from a drastic infrastructural deficit.” He underscored the principle that capital investment in infrastructure consistently yields positive economic returns for the state.
Moreover, Sheridan emphasised the necessity for a clear distinction between operational funding for Uisce Éireann and the provision of loan facilities, asserting that adequate funding for water infrastructure is as vital as new housing developments.
While recognising the overriding risk posed by inadequate water infrastructure, he also noted other enabling factors for construction activity, such as the expedited reform of public procurement processes. The CIF has also released a new strategy aimed at enhancing the delivery of public infrastructure, accessible via their contracting resource hub.
Despite the challenges, Sheridan pointed out some positive developments, including the introduction of the new Construction SEO, which is intended to bolster industry stability. He remarked that these new standards provide robust incentives to attract skilled talent to the sector while also promoting innovation and technological advancement in construction practices.
Additionally, the rollout of ARM5 is cited as a support mechanism for sustainability and lifecycle assessments, offering contractors a degree of relief when it comes to the measurement and pricing of design liabilities in tenders.
In conclusion, Paul Sheridan’s analysis paints a picture of an industry that possesses the potential for growth, contingent on the government taking decisive actions to create the necessary conditions for development.
Source: Noah Wire Services
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