Irish industry's decline predicted to slow to 3% this year
The pace of decline of the Irish construction industry will slow in 2013, with a 3 per cent drop in output forecast by construction consultants Davis Langdon. This compares with a decrease of 9 per cent in 2012.
Paul Mitchell, a director with Davis Langdon, says that the 2013 outlook represents relatively good news in terms of curbing the industry’s downward spiral.
Davis Langdon’s annual review counted 4,000 housing starts and 8,000 completions in 2012, less than a tenth of the annual total at the market’s peak.
Looking at the medium term, Davis Langdon believes that an industry that accounts for 10-12 per cent of GNP or 8-10 per cent of GDP would be a sustainable one.
“Even if the Irish construction industry grew by an average 10 per cent per annum over the next number of years it would be 2023 before we would reach the 12 per cent of GNP mark,” Mr Mitchell said.