SCSI/PwC Construction Market Monitor 2020: Private sector activity & the COVID-19 impact

Society of Chartered Surveyors of Ireland in connection with PwC just released 4th annual report assessing current activity levels across the Irish construction sector. This joint report provides insights into current trends as well as challenges facing construction consultants and the sector at large. Moreover, the report examines surveying professionals’ expectations over the next 12 months, which is a useful gauge of expected activity levels to come in 2021.

A comparison of surveyor responses between February and June 2020 provides a very clear picture of the severity of the impact of COVID-19 on the Irish construction sector. When asked about headcount, margins and workloads, a significant proportion (up to 68%) of surveyors reported a downward trend across the three areas. This is a stark contrast to February 2020 when only up to 12% of surveyors expected headcount, margins and workloads to decrease.

Since the reopening of the sector on 18 May 2020, activity has begun to gear up following weeks of lockdown. Sectoral protocols introduced provide for new working arrangements to manage COVID-19 risk. Extended construction timelines under these new arrangements and dealing with issues that still persist in relation to supply chain delays for certain materials, has impacted output levels.

Key findings  

• Covid-19 resulted in a 20% decrease in construction related activity levels in the first half of 2020 
  
• 51% of surveyors expect a decrease in workload in the next 12 months 
• Over two thirds expect a decrease in profit during this period 
• Seven out of ten have a negative or neutral outlook on activity levels
• Raising finance, project delays and skills shortages the key challenges
• Opportunities exist to further leverage digital
• Less than one in ten are ‘well prepared for Brexit

In in addition to the disruption caused by COVID-19, Brexit remains a real and present concern for businesses in Ireland. It has the potential to have significant impacts on business operations and trade already reeling from the effects of the pandemic.

For further Information please visit: https://www.scsi.ie/news/view?id=134

Regards, 

The McPeake Team...
Stay Safe...