Adapting to industry change: Key themes for specialist contractors in 2025

by | Feb 20, 2025

Denise Tuffy is the Construction Industry Federation’s Director of Specialist Contracting

The coming year promises significant developments for specialist contractors as the industry continues to evolve in response to changing regulations, technology, and market needs.

From apprenticeships and digitalisation to ESG compliance and off-site construction, a series of initiatives are set to impact the sector.

Here’s a closer look at the key areas of focus:

Apprenticeship transformation

The shift from craft apprenticeships to consortium-led models under the Apprenticeship Action Plan is a major milestone. Specialist contractors, who shoulder much of the responsibility for training apprentices, are closely monitoring how this transition unfolds.

The ongoing revalidation of some apprenticeships by QQI is also anticipated to streamline training and make it more industry-relevant.

Proposed innovations, such as shorter apprenticeships in certain circumstances, stand to enhance the appeal of some programmes, providing much-needed skilled workers for the sector.

ESG compliance challenges

Environmental, Social, and Governance (ESG) requirements are becoming increasingly significant, placing pressure on contractors to measure and report carbon emissions across the supply chain.

For many members, this is an area of steep learning, reminiscent of the early days of health and safety compliance. Supporting contractors, particularly smaller firms, in developing the capacity to meet ESG standards will be critical to the industry’s success.

Digitalisation mandate

The move toward digitalisation is gaining momentum, with the mandate expanding in 2025 to include contractors on public projects over €100million in value during the first six months and public projects over €20million on the contractor side for the following six  months.

This follows its initial application to the design processes in 2024. The government has provided support to the industry through the establishment of Build Digital which has been put in place to provide the necessary tools for both the public sector and industry.

Smaller contractors, often constrained by limited resources, will require targeted support to keep pace with these changes which will be provided by this service.

Embracing off-site construction

The 2D manufacturing industry particularly in terms of timber frame continues to add greatly to the construction process in relation to housing, a trend that is set to continue in 2025.

The 3D sector however awaits a stable pipeline in order to reach its full potential. Once realised, this sector has the capacity to contribute to the productivity of the construction industry overall which is key given the current constraints that exists in terms of skilled labour and the need for critical infrastructure.

It is hoped that 2025 will provide a greater level of pipeline to the sector after 2024 being a particularly difficult year.

Government supports have and will add value to the industry such as the imminent launch of the MMC data insights Initiative which will for the first time provide baseline data on the use of off-site construction in the Irish industry, as well as schemes such as the Accelerated Housing Delivery Programme that has promoted the use of MMC in house building primarily through the use 2D systems.

Skills development

Skills remain a cornerstone for industry growth, particularly in relation to modern methods of construction. A recent report commissioned by the Department of Enterprise Trade and Employment in conjunction with other government departments ‘Skills for Modern Methods of Construction’ highlights the need for targeted training to support off-site construction across various facets of the industry.

The roll-out of the action plan that will emanate from this report and falls under the remit of the Department of Further and Higher Education, Research and Innovation is eagerly awaited, with a focus on equipping the workforce with the expertise required to meet the industry’s evolving demands.

Looking ahead

While the outlook for 2025 is bright, contractors remain vigilant about the execution of these plans. The industry seeks tangible progress on key initiatives, from SEO implementation to skills development, public works project delivery and digitalisation support.

By addressing these challenges headon, specialist contractors can position themselves to thrive in a rapidly changing construction landscape.

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