Local firms reap rewards of motorway construction

The construction of the Gort to Tuam motorway is benefiting some 130 local firms who are supplying the project. That’s in addition to around 220 locals who are also employed on the scheme.

Work on the motorway began in the middle of January but it is believed that it has a huge knock on effect for local companies.

At the moment the main suppliers are those who are providing stone and gravel for the foundations of the motorway which is expected to be completed by early 2018.

But according to the consortium who are behind the project, hotels, restaurants, retail organisations and other rental accommodation are also benefiting.

It is estimated that the construction of the €550 million motorway will result in millions of euro in revenue to the local economy while it lasts.

The contract for the motorway was awarded to Direct Route and this involves three companies, Lagan Construction, Roadbridge and Sisk.

Work has been progressing steadily on all sections of the route and the consortium say that they are confident that it will be finished on time.

The route will take motorists from North Galway to a super junction at Rathmorrissey near Athenry. They then have the option of heading towards Gort and Limerick or Galway by joining the M6 motorway.

However, Declan Carney of Direct Route said that there were over 130 local companies had been or were currently directly involved in the project through supply of materials, plant and machinery and sub-contracting.

“In respect of employment numbers there are over 220 people from the region engaged directly in work on the project, which is a high percentage of the overall total employed on the scheme at present.

“There are further knock-on effects to indirect employment as in within companies supplying support to those directly involved, and induced employment in the region’s services industry like hotels, retail, and rental accommodation,” Mr. Carney added.

He said that it was difficult to estimate with complete accuracy how many companies benefit from the trickle-down effect and the additional employment generated by the investment cycle.

Published studies of the effects of infrastructure investment over the years demonstrate that indirect employment can be anywhere between 20% to 40% of the direct numbers.

This is dependent upon the level of off-site fabrication and the like, and induced employment in the region of 15% of the direct numbers. Practically all of these opportunities are fulfilled through local employment, Mr. Carney said.

He added: “Between now and the expected project opening in early 2018 there will be many more employment opportunities generated and as is the case to date, we would be hopeful that the majority of these will be filled by local people and businesses”.