Building hit by lack of finance, PwC poll finds

Shortages of finance and skills are threatening the building industry’s revival, according to a new study.

The PwC construction industry survey says 95 per cent of companies are confident about the next three years, while 87 per cent expect turnover to increase over the coming months.

More than two-thirds plan to increase job numbers and, of these, four out of 10 expect to up their workforces by more than 10 per cent.

However, 63 per cent say it is still difficult to get finance. Almost half have looked for alternative sources of cash rather than banks, including private equity and joint-venture deals.

The study says the main reason for the lack of zoned and serviced land in the Republic is insufficient finance.

Planning permissions

PwC tax partner Ronan MacNioclais has suggested that local authorities have granted fewer planning permissions so far in 2015 than during the third quarter of 2014.

Survey respondents also blamed excessive building regulations, levies and the recently imposed Central Bank limits on mortgage lending.

Close to half of those surveyed are having difficulty recruiting specialist staff – 78 per cent said there is a shortage of skilled contractors while almost half said they were having trouble hiring site managers. Mr Mac Nioclais said: “There is a real need to carefully manage the talent agenda, upskilling and retraining existing staff and perhaps looking abroad to bring back some of the talent that has emigrated.”