Wednesday 25 June 2025

The latest CIF Outlook Survey has revealed shifting sectoral trends in the second quarter of 2025. A total of 31% of companies report an increase in export turnover, while 50% of civil engineering contractors faced a drop in new orders.

The survey found that one in every eight specialist contracting companies and one in every four larger construction companies with a turnover of €9m+ are currently exporting construction services.

A total of 31% of companies report a year-on-year increase in business turnover from exports with 46% expecting turnover from exports to increase in Q2 2025.

Most common projects delivered

Data centres and pharmaceutical plants were the mos common projects delivered internationally in Q1 2025. These project types, together with commercial offices and healthcare facilities, are the most common projects expected to be delivered by Irish construction companies internationally in Q2 2025.

Hubert Fitzpatrick, director general of the Construction Industry Federation, said: “The latest CIF Construction Outlook Survey shows that the industry is strategically redeploying staff and expertise to international projects due to persistent uncertainty in Ireland’s infrastructure pipeline.

“Construction companies are ready and willing to deliver critical infrastructure here at home, but the projects simply aren’t materialising. They can no longer rely on Ireland as a stable base for long-term business.

“While workforce capacity is frequently raised in public commentary, this is not a limiting factor. Construction companies have the talent and resources to meet demand. The key barriers lie outside the industry with persistent planning delays, a lack of zoned land and slow delivery of enabling infrastructure like water and electricity.

“Irish construction companies want to work in Ireland and deliver for the population. It is in the national interest that constraints, particularly around planning and funding, are removed by government to unlock vital construction projects.

“The sector has the labour capacity and capability to deliver critical major infrastructure including water, energy, new housing, transport, educational and commercial development. But consistent roadblocks mean that for many companies, a reliable pipeline of work is not available in Ireland.

“Centralised government coordination and prioritisation of multiannual infrastructure investment are essential to provide certainty for Irish construction firms. Accelerated reform of public procurement and construction contracts is also critical to making public projects more commercially attractive. Together, these actions will give construction firms the confidence to expand their workforce and build at scale in Ireland.”

The survey of 233 construction companies found that:

Business turnover

• 27% of companies report a year-on-year increase in turnover in Q1 2025;
• 34% of companies anticipate turnover continuing to increase in Q2 2025.

New orders

• Only 29% of companies report a year-on-year revenue increase from new orders in Q1 2025;
• 35% of companies expect revenue from new orders to continue to increase into Q2 2025;
• In terms of sectoral revenue from new orders there was a notable decrease evident in civil engineering/infrastructure with over 50% of respondents reporting a decline in new orders;
• All other sectors expect an uplift in Q2 2025. Smaller sized companies are less positive regarding growth in new orders. 

New employment

• 26% of companies report a year-on-year increase in the total number of people they employ;
• 26% of companies also expect to employ more staff in the coming months. 

Cost of raw materials

• 67% of companies report a year-on-year increase in the cost of raw materials;
• 60% expect the cost of raw materials to continue to increase in Q2 2025;
• The year-on-year increase in the cost of raw materials was reported across all sectors and companies regardless of size. 

Pricing of projects

• 48% acknowledge an increase in the pricing of projects compared with the same period in 2024;
• 41% expect the prices charged to increase in Q2 2025;
• A year-on-year increase in the pricing of projects in Q1 features across all sectors and is most evident in companies with a turnover of <€4.5m. The increase in pricing will continue in Q2 in all sectors except for civil engineering/infrastructure where pricing appears static.

Read the Quarter Two 2025 Construction Outlook Survey