Construction sector stabilised in 2011, CSO finds

The construction sector showed signs of stabilising in 2011 following three years of decline, according to the Central Statistics Office.

Production value in the industry, representing the net selling value of work done whether sold or not, fell by just 0.6 per cent in the year, compared to 44.9 per cent in 2010 and 51.1 per cent in 2009.

Since 2008, production value has decreased by 73.2 per cent, from €31.7 billion to €8.5 billion.

The number of construction-related businesses fell by 19,500 or 40.9 per cent in the period. Between 2010 and 2011, around 4,200 businesses ceased operations, falling from almost 32,300 in 2010 to just over 28,100 in 2011, a decline of 13 per cent.

Employment in the industry also fell by 40.7 per cent, from 152,000 workers in 2008 to just over 90,000 in 2011.

Between 2010 and 2011, the number of people working in construction in Ireland fell by about 1,700, a drop of just 1.9 per cent.

Turnover fell 71.2 per cent to €9.31 billion in the same period, but between 2010 and 2011 it declined by just 1.4 per cent.

In 2008, Ireland had the highest turnover per person employed in the construction sector in the EU at over €305,000. The next closest country to Ireland was the Netherlands, with just over €195,000 worth of turnover per person employed.

By 2010, Ireland’s turnover per person employed had dropped to just under €180,000. Although this ranked second in the EU-27, the figure in 2010 was much more in line with the levels of other countries than was the case in 2008, the CSO said.

In 2011, Ireland’s turnover per person employed continued to decline and had fallen to approximately €147,000.