Ireland’s construction sector is entering a critical decade, with the Construction Industry Federation (CIF) warning that sustained delivery of housing and infrastructure projects is necessary to maintain economic competitiveness and meet growing social needs.
Andrew Brownlee, the chief executive of the CIF, stated that the country should concentrate on delivering projects during the coming decade to fully reap the advantages of the National Development Plan.
He highlighted that clearer project pipelines, quicker system processing, and improved collaboration among government, industry and the broader infrastructure network are essential.
Construction Outlook Survey
The Construction Outlook Survey for Q3 2026 released by the CIF indicates that the sector remains robust, supported by vigorous export performance and diminishing cost pressures.
The survey found that 67% of exporters reported higher turnover in Q2, while 57% expect export growth in Q3.
However, 40% of firms expect no public sector work in Q3, citing low margins, price-based tendering, and administrative burdens as the main barriers.
The poll also notes that roughly 90 % of companies experienced higher raw-material expenses in Q2, a drop from 94 % the quarter before, suggesting a modest relief in cost pressures.
Key Findings
Drawing on answers from 159 construction firms, the survey revealed that turnover, fresh orders and staffing levels showed either stability or modest growth in the second quarter of 2026.
Export work proved among the top-performing segments, as two-thirds of exporters recorded year-over-year turnover growth in Q2.
This expansion is fueled by demand for Irish construction know-how in data-centre projects, pharma plant builds, and road and transport initiatives.
In addition, the survey found that 28% of firms reported higher employment year-on-year, with larger contractors continuing to lead recruitment activity, and 28% expect turnover growth in Q3, indicating a positive outlook for the sector.
Challenges Ahead
Brownlee noted that the area that requires most attention is public works, with four in ten firms carrying out no public sector work at all.
The CIF urges changes to public procurement procedures to boost industry involvement and accelerate the delivery of housing and infrastructure.
The construction sector enters Q3 2026 with positive momentum, supported by strong export performance and cost inflation that has moderated from earlier in the year, although it remains higher than desired.
With 80% of firms expecting further material cost increases and only 21% expecting public works involvement to increase, the CIF’s call for reform and greater coordination across Government, industry, and the wider infrastructure ecosystem is key to unlocking the sector’s full potential and meeting Ireland’s growing social needs.