Overall construction workloads in Northern Ireland were marginally lower through the final quarter of 2024 according to the latest Royal Institution of Chartered Surveyors (RICS) Construction Monitor, however surveyors appear to be more optimistic looking at the year ahead.
Overall, a net balance of -3% of respondents in NI reported a fall in construction workloads in Q4 2024. Looking at the subsectors, public housing, private housing and private industrials all fell flat. Surveyors report that workloads in private commercial, infrastructure and other public works all declined (net balances of -3%, -8% and -15% respectively.
Respondents cited a lack of wastewater infrastructure capacity as a factor in the lack of house building growth.
Looking ahead, Northern Ireland respondents’ expectations for overall construction workloads in NI are more positive than seen previously, as a net balance of 10% of surveyors expect a rise, up from 2% in Q3. In saying this, it is still below the UK average which sits at 20%.
NI respondents also indicate that profit margins will continue to be squeezed over the next year; a net balance of -23% of NI respondents expect profit margins to fall – the lowest balance seen in over a year.
Surveyors in NI continue to report labour shortages. 58% of respondents reported a lack of quantity surveyors, up from 52% in Q3, 39% note a shortage in construction professionals, up from 31%, and 47% of respondents report a deficit in bricklayers, up from 40%. However, NI surveyors appear to be more optimistic looking forward, as a net balance of 8% of respondents anticipate a rise in employment over the next 12-month period.
Jim Sammon, RICS NI Construction Spokesman, said: “The NI construction market continued to face challenges through 2024, including in the final quarter. However, output increased by a healthy 14%[1] over the year as a whole, which was a 15 year high, reflecting the activity across various sectors, including housing and infrastructure. But it wasn’t without difficulties. Planning delays, a lack of wastewater infrastructure and increased cost of materials all impacted the sector through the course of the year, and these issues are expected to continue through 2025. In saying this, it is hoped that Northern Ireland’s construction industry will be on a path of positive momentum in the year ahead.”