Labour shortage threatens target of 40,000 new homes each year, builders warn

The Construction Industry Federation also want the planning process streamlined

Stephen Garvey, CEO of housebuilder Glenveagh said: "We are going to have to double output and if you double output you are going to have to double labour."

A labour and skills shortage in the construction industry is placing the goal of 40,000 new homes a year under threat, builders have warned.

The Construction Industry Federation's annual conference heard yesterday that the sector was at full capacity and that more than 11,000 new workers are required to meet the growing demand.

Speaking at the event, Stephen Garvey the CEO of Glenveagh, one of Ireland's largest house builders, said that once Covid was in Ireland's rearview mirror the main obstacles to delivering more homes would be planning and labour.

"As an industry we are producing 20,000 to 22,000 units and we want to get to 40,000 units a year. We are going to have to double output and if you double output you are going to have to double labour," he said.

"When we went through the restrictive lockdown this year a lot of migrant labour didn’t come back. So that has caused issues and you hope that will unwind. However, on the issue of labour the first question I get asked is where can they get accommodation. That’s the challenge we will face going forward."

In his keynote address to the summit, the Taoiseach Micheál Martin said they are committed to expanding construction apprenticeships substantially. "We recognise the critical importance of apprenticeship as a key supply of talent into the construction sector," he said.

"Employers will need to play their part in supporting skills development, through engagement in traineeships, apprenticeships and Skillnet Ireland programmes."

The CIF President Frank Kelly said they have been highlighting the labour shortage in the industry since 2016. 

"Between 2013 and 2018, in recovery mode, the industry was hiring 1,000 people a month. That rate has slowed somewhat, while in the meantime, the Government’s ambition has dramatically increased, with ‘Housing for All’ envisaging an annual output of 35,000 homes and €165bn in the NDP," he said.

The CIF's Director General Tom Parlon raised other barriers to development saying there were too many systemic barriers adding costs and delays to government-related infrastructure and housing. 

"These threaten to undermine the ambition of this and future Governments. If we don’t streamline the planning process, reform public sector procurement, amend the Government’s contract and ensure there are adequate supports for construction companies our housing and infrastructure delivery will be sub-optimal.”