NI construction sector 'may already be in recession'
- Published
Some 80 firms with headquarters in Northern Ireland were surveyed
Northern Ireland's construction sector may already be in recession, an organisation representing the industry has warned.
The Construction Employers Federation (CEF) said a survey of its members showed the most challenging conditions since 2012.
Other recent survey data has also suggested that the market is slowing.
The CEF surveyed 80 NI-headquartered firms that were responsible for turnover of almost 拢1bn in 2018/19.
Federation Managing Director John Armstrong said: "The industry is reporting alarming increases in redundancies and projected redundancies."
It asked about market conditions in the first half of 2019.
Among the key findings was that 28% of firms have already made redundancies, with a further 48% considering this likely in the next 3 months.
Almost 40% of respondents said profit margins on works had got worse or significantly worse in the last 12 months while 55% said they had stayed the same
Mr Armstrong said that lack of a Stormont Executive and uncertainty about budgets for public works was a significant factor.
Some 40% of respondents said profit margins on works had got worse, or significantly worse, in the last 12 months
"The restoration of the Northern Ireland Executive cannot, alone, solve this crisis," he said.
"However it being in place is a crucial enabler to having a sustainable pipeline of work, putting in place multi-year budgets which can provide certainty to the market and dealing with the key infrastructure funding."
Mr Armstrong said there was a particular issue with NI Water's budget which has a knock-on effect for house building.
"The consistent underfunding of NI Water has led to a drastic curtailment in much needed wastewater treatment works upgrades right across Northern Ireland.
"There is, consequently, a significant slowdown in the number of new homes being started and completed.
"We and our members find it staggering to the point of absurdity how little political focus there is on fixing this issue given how critical it is to development of all types, not just new homes."