AECOM Ireland Annual Review 2025

Irish Emigrant Construction Workers Urged to "Come Home and Build a Home"

24 January 2025

Est. Reading: 2 minutes

The AECOM Ireland Annual Review 2025 shines a spotlight on the construction sector, painting a nuanced picture of growth, challenges, and opportunities in the Republic of Ireland. With a robust economy and a thriving labour market, the industry finds itself at the crossroads of ambition and adversity.

A Strong Economic Backdrop

Ireland's economy continues to demonstrate resilience. In 2024, the Modified Gross National Income (GNI*) reached a record €280 billion, reflecting a 5% increase year-on-year. Domestic consumption and rising wages, bolstered by near-full employment, have been pivotal in sustaining economic growth. Key industries like technology and financial services provided the momentum, reinforcing Ireland’s status as a dynamic and growing economy.

Challenges in the Construction Sector

Despite this economic vitality, the construction sector faces significant challenges. Escalating tender prices have created financial pressures for developers, with inflation in materials and labour driving costs higher. Supply chain disruptions, a residual effect of global events, continue to impact project timelines and budgets. These hurdles are exacerbated by the ongoing housing crisis, which demands urgent and large-scale solutions.

Housing and Infrastructure in Focus

The housing market remains a critical issue. With demand outstripping supply, government initiatives aim to accelerate residential construction, including social and affordable housing projects. However, achieving targets will require innovative solutions and collaboration between public and private sectors.

Infrastructure is another area poised for transformation. Major projects like the National Development Plan 2021–2030 promise to modernize Ireland's transport networks, renewable energy facilities, and public utilities. These developments aim to address long-term structural needs and align with sustainability goals.

Sustainability Takes Center Stage

Sustainability is now a cornerstone of construction in Ireland. The drive toward decarbonization, renewable energy adoption, and green building practices is reshaping the industry. Government policies and funding are encouraging stakeholders to prioritize low-carbon materials, energy-efficient designs, and waste reduction in construction practices.

Future Prospects

The outlook for the Irish construction sector is cautiously optimistic. While challenges like cost inflation and supply chain disruptions persist, opportunities in housing, infrastructure, and sustainability offer avenues for growth. Embracing innovation, technology, and collaboration will be key to overcoming obstacles and driving progress in the years to come.

As we look ahead, the construction industry stands as a critical pillar in Ireland's economic and social development. With the right strategies, it can play a transformative role in shaping a sustainable and prosperous future.

Read the full review at https://publications.aecom.com/ireland-annual-review/