Construction industry needs private sector activity to harness recovery

Galway and the West needs increased private sector investment activity to anchor its recovery – that’s according to the AECOM Annual Review of the Construction Industry.

The international architecture and project management company which worked in Galway most recently on the new, critically acclaimed Engineering Building at NUIG.

AECOM Director John O’Regan – who is based in their Galway office – revealed that the firm anticipated construction industry activity nationally would grow by twelve to fifteen per cent in 2015 with this strong growth pattern due to continue as the economy recovers.

However, the East coast is experiencing faster growth than the rest of the country – including the Galway region.

“As with other regions outside Dublin, construction activity in Galway and the West needs increased private sector investment activity to anchor its recovery,” he said.

“There is confidence that this will be achieved in 2015 and 2016 through the combination of international investors starting to look outside of Dublin for value, coupled with domestic and FDI companies re-investing and expanding,” he added.

John O’Regan said that public capital expenditure has continued to be the primary driver of activity in the western region and this is likely to continue in 2015

“In civil engineering terms, 2014 finally saw contracts signed for the Gort to Tuam extension of the M17 motorway. Due for completion in 2018, it will provide a significant boost to the construction industry in the region.”

He highlighted the importance of development work at NUI Galway such as the Human Biology building and a 450 bed on-campus accommodation project.

Other work in the education sector and at Sligo and Portiuncula Hospitals will also be important for construction in the West.

“The level of private development has been muted, however, there is increased optimism that we see the start of private sector investment in 2015. In residential development, the second half of 2014 has seen the commencement of a limited number of new multi-unit developments in Galway city.

“On the commercial front, Hewlett Packard has taken possession of its new landmark office building in Galway – one of the largest developments of its kind in the region in recent years.”

John O’Regan said that the construction industry in Ireland in 2014 experienced a two-tier recovery.

For more, read this week’s Galway City Tribune.