CONSTRUCTION Market Report - REPUBLIC OF IRELAND 2007

Abstract

AMA Research has published the 2nd Edition of the Republic of Ireland Construction Market report. The report should be of particular interest to individuals and institutional investors, and provides a comprehensive and easy to use review of the rapidly evolving Irish construction sector.

The industry has seen considerable growth over the last decade underpinned by unprecedented development in the house-building market. This report focuses on market characteristics, recent developments and key suppliers to the €36 billion sector; analyses the activities of the major contractors within the market; and provides a comprehensive review of key influences on the Irish construction sector.

Key Areas Covered:-

• Review of Construction Contractors - analysis of major contractors, corporate activity, key project experience, financial indicators and forecasts of major trends.
• Detailed Assessment of the Construction Market - construction output by value, analysis by sector (residential, private non-residential, productive & social infrastructure), regional construction output, private finance, Government investment, planning issues, trends and forecasts.
• The National Development Plan - analysis of the impact of the Plan across 2000-2006, and the forecast levels of investment for the new 2007-2013 Plan.

Of Particular Interest:-

• Key financial results reported by many of the major construction contractors.
• Structure of the Construction Sector - which remains highly fragmented, with no one player (with the exception of John Sisk) having more than 3% of the market.
• Key Output Drivers - House building remains the key driver of output in the Construction Sector, accounting for 67% of the market, followed by Productive Infrastructure (16%), Private Non-Residential (11%) and Social Infrastructure (6%).
• The National Development Plan 2007-2013 - will see investment levels climb to €184 over the 7 year period and contains a strong emphasis on infrastructure investment, with almost €80 billion or 50% of 2007 GNP budgeted for infrastructure spending (both economic & social).
• Analysis of Regional Construction Markets.

Key areas of coverage in the report include:-

CONSTRUCTION CONTRACTORS

• Analysis of the size and structure of the contracting industry in Ireland.
• Ireland’s Top 20 Construction Companies by Group Turnover.
• Analysis of the major quoted construction contractors, including corporate activity, key project experience, financial indicators and forecasts of major trends etc.

CONSTRUCTION MARKET

• Current market conditions, overview of the market during 2005/06 - outlook for 2007 and forecasts 2008-2009.
• Analysis by sector - Construction output and activity in the Residential, Private Non-Residential, Productive Infrastructure and Social Infrastructure sectors.
• The impact of residential house building - a major sector of the Construction Market.
• Review of regional construction activity by value and sector.
• Analysis of construction employment levels, which now account for around 13% of the total Irish workforce.

FACTORS AFFECTING THE CONSTRUCTION INDUSTRY

• Analysis of the National Development Plan 2000-2006 and levels of investment in roads, water services, waste management, public transport and social housing.
• Details of specific investment levels in each sector for the new €184m National Development Plan 2007-2013.
• Analysis of the market size and use of Public Private Partnerships in the procurement of construction projects.
• Review of the main points of the 2007 Budget, spending allocations, investment in the Multi-Annual Capital Envelopes and Budget projections to 2009.
• Review of the planning sector in Ireland, including the impact of Strategic Development Zones, zoned land for housing, the problem of planning delays and the new Planning and Development Regulations 2006.
• Overview of the use of pre-fabricated building materials and techniques in the Irish construction industry, together with commentary on the major suppliers of timber frame housing units and prefabricated kitchen and bathroom pods.
• Overview of the market of Timber Frame Housing in Ireland.

Table of Contents

1. INTRODUCTION

2. SUMMARY

3. ECONOMIC ENVIRONMENT & SOCIAL BACKGROUND

• 3.1 GENERAL
• 3.2 ECONOMIC BACKGROUND.
  • 3.2.1 Economic Growth in 2006
  • 3.2.2 GDP
  • 3.2.3 Interest Rates
  • 3.2.4 Imports and Exports
  • 3.2.5 Consumer Confidence
  • 3.2.6 Impact of the 2007 Budget
• 3.3 DEMOGRAPHIC PROFILE
  • 3.3.1 Population
  • 3.3.2 Regional Profiles

4. CONSTRUCTION MARKET OVERVIEW

• 4.1 TOTAL CONSTRUCTION MARKET
  • 4.1.1 Value of Output - Construction New Work
  • 4.1.2 Performance in 2006
  • 4.1.3 Forecasts for Construction Output in 2007-2009
• 4.2 REGIONAL CONSTRUCTION OUTPUT
• 4.3 CONSTRUCTION EMPLOYMENT LEVELS
• 4.4 CONSTRUCTION COSTS
  • 4.4.1 Labour Costs

5. SECTORAL CONSTRUCTION ACTIVITY

• 5.1 OVERVIEW
• 5.2 RESIDENTIAL SECTOR
• 5.3 PRIVATE NON-RESIDENTIAL
  • 5.3.1 Industrial Construction
  • 5.3.2 Commercial Construction
• 5.4 PUBLIC NON-RESIDENTIAL
  • 5.4.1 Social Infrastructure
  • 5.4.2 Productive Infrastructure

6. KEY FACTORS AFFECTING THE INDUSTRY

• 6.1 THE NATIONAL DEVELOPMENT PLAN
  • 6.1.1 2000-2006 Plan
  • 6.1.2 Infrastructure Developments under the 2000-2006 NDP
  • 6.1.3 National Development Plan 2007-2013
• 6.2 PLANNING AND LAND DEVELOPMENT
  • 6.2.1 Strategic Development Zones
  • 6.2.2 Zoned Land for Housing
  • 6.2.3 Planning and Development Regulations 2006 (S.I 685 of 2006)
• 6.3. CAPITAL FUNDING
  • 6.3.1 2007 Budget
• 6.4 PUBLIC PRIVATE PARTNERSHIPS (PPP)
  • 6.4.1 Market Size
• 6.5 USE OF PREFABRICATION
  • 6.5.1 Types of Prefabricated Building Construction
  • 6.5.2 Application of Prefabrication to the Irish Construction Industry

7. CONSTRUCTION COMPANY PROFILES

• 7.1 OVERALL MARKET
• 7.2 STRUCTURE OF THE CONTRACTING INDUSTRY
• 7.3 KEY CONSTRUCTION COMPANIES AND CONTRACTORS

8. FUTURE PROSPECTS

TABLES AND CHARTS

• CHART 1 VALUE OF CONSTRUCTION OUTPUT NEW WORK 1999-2009 (€ BILLION)
• TABLE 2 IRELAND - ANNUAL AVERAGE % CHANGE GDP 1998-2008
• TABLE 3 IMPORTS AND EXPORTS FROM AND TO IRELAND 1996-2006 BY VALUE - (€ MILLION)
• TABLE 4 IRELAND - ANNUAL AVERAGE % CHANGE IN CONSUMER PRICES 1997-2007
• TABLE 5 POPULATION OF THE REPUBLIC OF IRELAND 1995-2015 (MILLIONS)
• TABLE 6 VALUE OF CONSTRUCTION OUTPUT NEW WORK 1999-2009 (€M)
• TABLE 7 STRUCTURE AND VALUE OF THE IRISH CONSTRUCTION INDUSTRY 2006 (€ BILLION)
• TABLE 8 VALUE OF CONSTRUCTION OUTPUT BY REGION - 2003 AND 2005 (€M)
• TABLE 9 NUMBERS EMPLOYED IN THE IRISH CONSTRUCTION INDUSTRY 1999-2009
• TABLE 10 WHOLESALE PRICE INFLATION FOR BUILDING MATERIALS IN IRELAND (JAN-JUNE 2005 AND JAN-JUNE 2006):
• CHART 11 TOTAL CONSTRUCTION MARKET IN THE REPUBLIC OF IRELAND BY SECTOR - % BY VALUE 2006
• TABLE 12 VALUE OF CONSTRUCTION OUTPUT BY SECTOR* - 2004-2008 (€M)
• CHART 13 IRELAND - HOUSE-BUILDING COMPLETIONS 1996 - 2011
• CHART 14 PRIVATE NON-RESIDENTIAL CONSTRUCTION OUTPUT BY SECTOR - % BY VALUE 2006
• CHART 15 IRELAND - INDUSTRIAL CONSTRUCTION OUTPUT 2002-2006 (€ ‘000)
• CHART 16 IRELAND - COMMERCIAL CONSTRUCTION OUTPUT 2002-2006 (€ ‘000)
• CHART 17 IRELAND - RETAIL CONSTRUCTION OUTPUT 2002-2006 (€ ‘000)
• TABLE 18 IRELAND - RETAIL SCHEMES CURRENTLY UNDER CONSTRUCTION 2006-2009
• CHART 19 SOCIAL INFRASTRUCTURE CONSTRUCTION OUTPUT BY SECTOR - % BY VALUE 2006
• CHART 20 IRELAND - EDUCATION CONSTRUCTION OUTPUT 2002-2006 (€ ‘000)
• CHART 21 IRELAND - HEALTHCARE CONSTRUCTION OUTPUT 2002-2006 (€ ‘000)
• CHART 22 PRODUCTIVE INFRASTRUCTURE CONSTRUCTION OUTPUT BY SECTOR - % BY VALUE 2006
• TABLE 23 NATIONAL ROAD SCHEMES DUE TO START IN 2006
• TABLE 24 THE NATIONAL DEVELOPMENT PLAN 2000-2006 - CAPITAL ALLOCATIONS TOWARDS INFRASTRUCTURAL DEVELOPMENT (€ BILLION)
• TABLE 25 ESTIMATED CAPITAL ALLOCATIONS UNDER THE NATIONAL DEVELOPMENT PLAN 2007-2013 - (€ BILLION)
• TABLE 26 IRISH BUDGET - SUMMARY OF DEPARTMENTAL ALLOCATIONS 2006-2009
• CHART 27 FORECAST GOVERNMENT CAPITAL SPENDING 2007-2013 (€ ‘000)
• TABLE 28 NATIONAL DEVELOPMENT PLAN 2007-2013 PPP FINANCE PROJECTS
• TABLE 29 NUMBER OF BUILDING AND CONSTRUCTION FIRMS IN IRELAND 2003 & 2004