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Northern Ireland Construction Industry Expected to Return to Growth in 2015

Construction employers in Northern Ireland faced another difficult year in 2014 with a further decline in output experienced.  However a modest return to growth of 1% is expected in 2015 with the commercial, private housing and public non housing sectors expected to drive growth in the industry over the next five years, according to the Construction Skills Network (CSN) Industry Insights report, published today by ConstructionSkills.

According to the CSN Industry Insights Report for NI 2015-19, the performance of the local construction industry over the next five years is expected to show:
 

  • Annual average output growth of 2.2%, lagging behind the UK (2.9%).  Activity in NI is rising from a much lower base than the UK as a whole, given that output in the devolved nation fell by an estimated 43% between 2006 and 2013, in comparison to a drop of 13% for the UK over a similar time-frame.
 
  • All sectors bar public housing are expected to see growth, with the commercial sector leading the way with 4.4% per annum growth on average, benefiting from long term development such as City Quays and the Titanic Quarter. 
 
  • Private housing activity will inevitably bounce back from its current low levels, with a moderate rate of 3.7% a year average growth.  The public non-housing sector should also fare reasonably well, driven by a significant amount of work anticipated for the education and health sub-sectors, which should see annual average growth of 3.1% per year for public non-housing activity.  
 
  • 1,490 jobs are expected to be created each year for the next five years, with annual recruitment requirements higher for some trades more than others – including a demand for bricklayers , plant operatives, professional and technical staff, plasterers and wood trades.  
 
Barry Neilson, Chief Executive CITB NI said, “The CSN forecast shows that after a period of decline for the local construction industry recovery is on the way but it is a gradual return to growth as opposed to strong resurgence. Developments in the commercial sector will drive growth and further investment by Government in capital expenditure projects is also vital to ensure that the future growth is sustained.”
 
“Skills are a key driver of growth, performance and prosperity. Our aim is to develop a qualified and competent workforce within the NI construction industry and to help encourage and support training to ensure the right skills are in place for the opportunities growth in the industry will bring.   We are looking forward to the future with a confident and more capable workforce able to embrace the opportunities arising as our industry regenerates. As part of our work to attract a new generation, we’re rolling out a new Shared Apprenticeship Scheme , which will help apprentices to complete their training whilst working with a number of different employers. We’re also working with careers advisors and the Department for Employment & learning to promote careers in the industry.  But we’re not just committed to bringing through the next generation. Through our ‘Qualifying the Existing Workforce’ programme, we’re helping over 1,500 construction workers to achieve an NVQ Level 2 to ensure we have a better skilled and qualified workforce and to make sure our industry is world-class.”  
 
For more information on the CSN and to read the full report, click here