Top 20 building firms see their exports top €1bn

Exports by the country’s top 20 construction firms have eclipsed the €1bn mark, with demand for industrial construction services showing particularly strong growth.

The companies have a combined turnover of €3.8bn, according to a recent report from the Construction Industry Federation, with estimates suggesting growth of 20% on last year.

The recovering strength of construction firms is helping them take advantage of opportunities in key export markets, PM Group chief executive Dave Murphy said.

“Irish companies have performed very well in exporting industrial construction services overseas,” said Mr Murphy.

“Realistically exports apply mainly to the UK and European markets. It’s nearer home, easier to deliver [to], and where the best opportunities lie.

“We also have a number of advantages in terms of our connectivity to these markets, the skills shortage in key sectors [abroad], our flexibility, good safety culture, and the benefit of communicating in the working language of most businesses — English.

“It is vitally important for a vibrant and sustainable construction sector that we don’t allow this industry to decline as the economy continues to improve in Ireland.”

Mr Murphy warned that a skills shortage needs to be addressed. The impact of widespread emigration which pilfered vital expertise from the construction sector is being acutely felt and will need to be addressed, he said.

Meanwhile, homeowners have been warned that they could face higher insurance premiums as building costs continue to climb.

The Society of Chartered Surveyors Ireland made the claim as it released its annual guide to house rebuilding costs. An average annual increase of 4% could result in pro-rata increases in house insurance premiums.

Its president, Andrew Nugent, said: “The key for homeowners is to check that their house rebuilding costs — the reinstatement costs involved in rebuilding a house in the event of a catastrophe such as a fire, which are required on all home insurance premiums — are adequate and fully in line with current figures. Homeowners need to check the ‘sum insured’ on home insurance premiums to ensure they are fully covered and not over or underpaying.”

In Dublin, average rebuilding costs on a standard home increased by 3% while the average minimum rebuilding costs for a standard house in Cork and Limerick rose by 5%.

Figures released by Vayu Energy yesterday also points towards a marked increase in wholesale gas prices. They were 23% higher in June on an annual basis.

The rise was attributed to a weaker euro, higher demand for gas, and a series of unplanned outages in the UK and North Sea.