Justin Molly is the Construction Industry Federation’s Director of the Western, Midland and Northern Region
The construction industry in Ireland is currently navigating a dual reality: a booming demand for housing and infrastructure but significant barriers slowing progress.
While contractors remain busy and projects are underway, issues such as bureaucracy and infrastructure delays weigh heaviest on the sector.
Whereas much publicised labour challenges are a factor, the industry is, and has always, proved capable of addressing that challenge.
The bottleneck: Bureaucracy and infrastructure
One of the most pressing concerns is the bureaucratic red tape surrounding planning and infrastructure development.
That major infrastructural initiatives undertaken by the likes of Uisce Éireann and Transport Infrastructure Ireland must go through an exacting arduous process slows progress considerably.
The time taken for appeals and approvals creates a domino effect of delays, particularly in housing projects. The saying “no infrastructure, no building” aptly captures the crux of the issue.
Without essential services like water, electricity, and transport links, construction cannot proceed. Planning today for what’s needed 20 to 30 years ahead is critical, but the current system seems focused on solving immediate needs, leaving the industry playing catch-up.
This inefficiency has cascading effects.
Delays in infrastructure lead to higher project costs, which in turn burden the end user. Developers face rising expenses for connections, permits, and other approvals, all of which inflate the cost of housing.
Regional infrastructure deficits hinder Ireland’s ability to develop a balanced economy as envisioned in the National Planning Framework (NPF), leaving regions unable to counterbalance Dublin’s dominance.
A lack of infrastructure stalls building, investment, employment, and ultimately, population growth.
To address this, the government should establish an independent National Infrastructure Commission, akin to the UK model, composed of industry experts tasked with prioritising, planning, and monitoring state infrastructure delivery – operating consistently across political cycles.
Immediate actions should include accelerating the National Development Plan (NDP), fast-tracking critical infrastructure, creating a robust pipeline of projects to foster industry confidence, increasing funding to delivery bodies, and reforming public contracts to promote collaboration over conflict.
Labour supply: Challenges and opportunities
While securing skilled labour at every level remains a challenge, the industry is actively addressing this issue.
Apprenticeships and collaborations with schools and colleges are helping attract new talent. The introduction of ‘earn and learn’ professional apprenticeships in civil engineering is one such initiative.
However, additional disincentives, such as taxation policies, exacerbate the issue. For example, the application of Benefit-in-Kind (BIK) taxes on vehicles, which are essential tools for construction workers, is counterproductive.
This policy, alongside rising accommodation costs and outdated allowances for workers traveling far from home, makes the industry less attractive to young people.
Rethinking infrastructure delivery To address these challenges, the government must adopt a more imaginative and efficient approach to infrastructure delivery.
It needs to fast-track critical infrastructure projects and align policies to reduce unnecessary costs.
Collaboration with industry stakeholders is essential to develop solutions that work for everyone. The construction industry exists to serve the economy.
If housing and infrastructure projects can proceed without unnecessary barriers, the economy benefits from investment, employment, and improved quality of life.
The construction industry is ready and able to deliver for the country, it’s economy and its people, what is necessary now is to develop the system that allows it to do so.
