AKC News // Review of the Construction Industry 2006 and Outlook 2007-2009

Construction Review 2006 Summary
The Irish economy has come to rely heavily on the construction sector with the result that construction accounts for a sizeable proportion of economic activity. The direct contribution of the construction sector to the Irish economy, using the gross estimates presented in the Construction Industry Review and Outlook (CIRO) is almost 35.5bn. or almost 24% of GNP. The construction sector itself relies heavily on new residential construction, with over one half (55%) of the sector's output or €19.5bn, attributed to new housebuilding alone. This leaves the economy and employment vulnerable to the current slowdown which is underway in the new housebuilding sector.

The balance, some 16bn, is made up of new construction output arising from projects in the private and public non-residential sectors (9bn.) and output from investment in repair, maintenance and improvement projects associated with the existing stock of buildings and infrastructure (7bn.).

Based on the other approaches to measuring construction output, the "value-added" (outputs less inputs) by the construction sector represents over 10% of GNP compared with agriculture, for example, which accounted for less than 3% of GNP in 2006. In the context of the total value added by all industry, the building and construction sector also represents the largest share, representing 29% of the total, ahead of chemicals, the second-largest sector, which accounted for 22% of the total value added by all industry (including construction) in 2006.

Click here to download the full of the Review of the Construction Industry 2006 and Outlook 2007-2009 report in PDF format.

Source: Department of the Environment, Heritage and Local Government

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Date : 30-09-2007