Turnover in top construction firms grows to €6.72billion

The combined turnover of Ireland’s top construction firms has increased by €720million on last year according to Construction Magazine’s annual Top 50 CIF Contractors listing for 2018.

The annual listing gives a snapshot of the overall growth in Irish construction as it delivers many largescale projects throughout Ireland and the world, attracting foreign direct investment to Ireland and exporting over €1.6bn in construction expertise.

According to Construction Magazine’s figures the Top 50 Irish Contractors reported a combined turnover of €6.72billion over the last 12 months, with €5.1billion of this activity taking place in Ireland and a €1.62billion resulting from exported construction services.

Ireland’s Top50 Contractors list was revealed at an exclusive event last night (Tuesday 3^rd July) in Dublin as industry leaders gathered to see how their firm ranked and celebrate a successful year of increased business despite the challenges that remain for the sector.

Robbie Cousins, Construction Magazine Editor said:

“This is an impressive result, even more impressive when the lack of balanced regional development and the slow rate of recovery in housing is taken into consideration. The Top50 listing gives a clear indication that construction is a dynamic industry sector looking to the future with vigour and ambition to deliver complex construction programmes at home and overseas.”

Tom Parlon, Director General, CIF said:

“Irish main and specialist contractors are absolutely critical to the Irish economy’s competitiveness. The largest corporations in the world locate in Ireland for many reasons. But, if our main and specialist contractors were not world-class they would never establish a footprint here. Ireland is working because this sector is working.

Without the success of Irish construction, we would not have had the ability to attract tech savvy and forward-thinking multinationals like Linkedin, Google, Facebook, Eli Lilly to name but a few, and this is now recognised by the IDA and the wider Government apparatus.

The construction industry is changing, we are innovating and leading the way in how we implement new and improved technology, how we attract and retain workers and how we work together more generally. We have emerged from the depths of the recession leaner, more modern, sustainable, adaptable and resilient. But there are significant improvements, that still need to be made in order to preserve and support our sector’s recovery into the future.

We must enable more companies to grow and become world-leaders. To do this, we need the Government to set out an export-led growth strategy for this important sector. We also need to fix our procurement system here at home and ensure the right supports are in place to help build companies of scale. Finally, we must also work to attract workers back into the industry and make the process of moving home from abroad and gaining work in the sector more streamlined.”

Minister of State at the Department of Finance and Public Expenditure and Reform, Patrick O’Donovan said:

“May I be the first to congratulate all the companies, their employees and, of course, their clients who have contributed to what has been yet another progressive year for the construction sector.  The increase in turnover and employment levels across the various sectors is most welcome from Government’s perspective.  It reflects an economy that has shown an average of 4.4% growth in the years 2013 – 2017 with unemployment figures down from 16% in 2012 to just below 6% in April of this year.

The increase in export activity demonstrates growing diversity that will stand the sector in good stead in more challenging economic times. Government’s commitment to advancing digital technologies in the delivery of the National Development Plan will further expand the sector’s export potential.

There is evidence too that the recovery in the sector is spreading beyond the urban centres where the ‘green shoots’ were first seen in 2013. Recent analysis also highlights a welcome increase in residential construction activity whilst growth in other areas remains strong.

Our workforce is internationally renowned for its skills, professionalism and innovation which has contributed to sustained investment, even during the toughest years of the recession.  In this regard, the construction sector has played a key role in the recovery both in the construction of vital public and social infrastructure but also attracting inward investment by recording extremely positive outcomes amongst the sectors’ large, multinational client bodies.

Confidence levels in the Irish economy are undoubtedly high but it would be remiss not to mention the challenges; housing, Brexit and the current uncertainty in global trade arrangements have the potential to impact further growth.

Skills shortages and the persistently low margins that are evident in certain sectors are challenges that are particular to the construction industry. Skills shortages allied with the uncertain global trade situation are likely to increase inflationary pressure in the short to medium term whereas low margins are impacting relationships and payments in the extensive construction supply chain. If not addressed, the capacity for the industry to grow is limited.

Government is committed to working with industry to manage these challenges. Indeed, it is imperative so that all citizens and businesses may enjoy the benefits of the substantial investment that will accompany the National Development Plan.

I look forward to positive engagement with the industry over the coming months as we consider the optimum means of procuring the necessary expertise to deliver Ireland 2040 in a sustainable, efficient and cost-effective manner.”

The Construction Magazine Top 50 CIF Contractors 2018 listing is as follows:

 Foundation Media, publishers of Construction magazine, compiles the Construction Top 50 CIF Contractors List annually.*

Businesses must be current CIF members to be eligible for inclusion on the list. Companies are listed according to their overall turnover figure (combined Irish and International) for their last trading year.

Turnover figures are sourced directly from contractors who are CIF member companies. Companies must have their primary business based in ROI to be included on The List.

Foundation Media contacted CIF member contractors directly to request available turnover figures for the business year that concluded on 31st December 2017, or their business year end that is closest to that date.

Rankings for inclusion in the Construction Top 50 CIF Contractors List are based on the overall turnover figures supplied.

For the complete listing click here