Low confidence in public works as construction firms fix focus abroad – CIF Q3 Outlook Survey

The CIF has published its latest Q3 2025 Construction Outlook Survey, revealing persistently low engagement with public works contracts, as firms increasingly look to international markets for growth.

According to the survey of 110 construction companies, 72% reported no or low involvement in public works contracts in Q2 2025, and 69% expect that trend to continue into Q3. Only 15% anticipate greater engagement over the next 12 months, while 10% of those currently involved in public projects expect to scale back, citing issues such as lowest-price tendering, bureaucracy, and project delays.

Despite the domestic infrastructure and housing challenges, Irish firms continue to perform strongly abroad.

40% of companies reported higher export turnover year-on-year in Q2 2025, and a similar proportion expect further growth in Q3.

The most common international projects include data centres, pharmaceutical plants, and retail developments, with commercial offices and hotels also expected to feature strongly in the next quarter.

Andrew Brownlee, CEO of the CIF, said:

“The latest CIF Construction Outlook Survey shows that the industry continues to redeploy its staff and expertise to international projects due to persistent uncertainty in Ireland’s infrastructure pipeline.

“Our research shows that Irish construction companies need confidence to reshore their capacity. Real capacity constraints are not about workforce or skills; they’re about planning delays, legal challenges, and a lack of multiannual funding tied to deliverable projects. These issues erode business certainty and push companies to seek private or international work instead.

“With €102.4 billion in capital allocations planned for 2026–2030, the Government’s upcoming sectoral investment plans must provide clear, traceable project details to sustain business confidence. A stable project pipeline and predictable planning environment are essential to deliver Ireland’s housing and infrastructure needs.”

The survey of 110 construction companies found that:

Business turnover

• 30% of companies reported higher turnover year-on-year in Q2
• 40% expected turnover to increase in Q3

New orders

• 30% reported higher revenue from new orders year-on-year in Q2
• 36% expected continued growth in Q3
• Revenue fell year-on-year in home building and general contracting, but grew in civil engineering/infrastructure and specialist contracting

Employment

• 23% reported an increase in the total number of people they employ year-on-year in Q2
• 20% expected to increase the total number of people they employ in Q3

Costs and pricing

• 72% experienced higher raw material costs year-on-year in Q2
• 68% expected further increases in Q3
• Increasing costs continue to impact on the pricing of projects with 49% acknowledging a year-on-year increase in Q2
• 42% of companies expected continued price increases in Q3

Read the CIF Construction Outlook Survey Q3 2025 Report here.