Keeping tabs on a recovery in construction

Is construction on the brink of a rebound? If so, it may be an important component of any nascent recovery in Ireland’s domestic economy over the next five years.

Anyone exposed directly or indirectly to the Irish construction industry will be wary of a prophesy about growth in activity. Of all the sectors eviscerated during the Ireland’s economic collapse, it was construction that hurt hardest.

Annual house completions imploded from 88,000 in 2006 to just 8,500 in 2012. Average house prices are down almost 50% from their highs, compounding the volume and price effect for the entire sector. Commercial properties were overbuilt and the recession postponed decisions by many companies to any expansion plans.