Construction Industry Federation (CIF) warns Ireland faces a critical decade for delivery as Q3 survey shows strong export growth but 40% of construction firms avoid public works.
Ireland’s construction sector has entered what industry leaders describe as a defining decade, with the Construction Industry Federation (CIF) warning that sustained delivery of housing and infrastructure projects will be critical to maintaining economic competitiveness and meeting growing social needs.
Speaking at the CIF Annual Conference in Croke Park, attended by Minister for Housing, Local Government and Heritage James Browne, senior government representatives, industry CEOs and policymakers, CIF chief executive Andrew Brownlee said Ireland must focus on delivery over the next ten years to maximise the benefits of the National Development Plan.
“We need greater certainty around project pipelines, faster progress through the system and stronger coordination across Government, industry and the wider infrastructure ecosystem”
The conference, themed Ready to deliver: Ireland’s decade of construction, examined measures to accelerate capital projects across housing, transport, energy and water infrastructure while addressing persistent delivery bottlenecks.
KEY NUMBERS: CIF Q3 2026 Construction Outlook
• 67% of exporters reported higher turnover in Q2
• 57% expect export growth in Q3
• 40% expect no public sector work in Q3
• 90% reported higher raw material costs
• 80% expect further material cost increases
• 28% expect turnover growth in Q3
• 28% reported higher employment year-on-year
• Only 21% expect public works involvement to increase
Editorial takeaway: Export-driven growth continues to support Ireland’s construction sector, but limited participation in public works and persistent cost pressures remain key barriers to accelerating housing and infrastructure delivery.
A critical 10-year window
Coinciding with the event, the CIF published its Q3 2026 Construction Outlook Survey, which points to continued resilience across the sector, underpinned by strong export activity and easing cost pressures.
Addressing delegates, Brownlee said: “Ireland faces a critical ten-year window before demographic pressures begin to constrain fiscal capacity. The country is entering a defining decade for construction where plans and ambition must translate into relentless delivery.
“Our quarter three 2026 survey findings show strong export growth across data centres, pharma, and transport. However, four in ten firms are carrying out no public sector work due to low margins, price-based tendering, and administrative burdens. We need greater certainty around project pipelines, faster progress through the system and stronger coordination across Government, industry and the wider infrastructure ecosystem.”
The survey, based on responses from 159 construction companies, found that turnover, new orders and employment recorded stable to modest growth during the second quarter of 2026, with expectations remaining positive for the months ahead.
Export activity emerged as one of the strongest areas of performance. Two-thirds of exporting firms reported year-on-year growth in turnover during Q2, while a majority expect further gains in the third quarter. Growth is being driven by demand for Irish construction expertise in data centre developments, pharmaceutical facilities and roads and transport projects.
The report also indicates that inflationary pressures, while still significant, have moderated. Around 90% of firms reported increases in raw material costs during Q2, down from 94% in the previous quarter. Expectations for future cost increases have also eased, while concerns around supply chain disruption have fallen sharply.
Employment remains relatively stable across the industry. More than a quarter of firms reported year-on-year increases in staffing levels during Q2, with larger contractors continuing to lead recruitment activity.
However, participation in public works programmes remains a concern. The survey found that 39% of firms undertook no public sector work during Q2, rising slightly to 40% expected in Q3. Low margins, administrative burdens and the cost of tendering were identified as the main barriers preventing greater engagement.
Commenting on the survey findings, Brownlee said: “Our latest research among the sector points to an industry that continues to perform well, with export activity in particular delivering some of the strongest results we have recorded. Cost pressures have eased since the start of the year, which is welcome, but they remain high enough to affect margins on projects across every sector.
“The area that requires most attention is public works. Four in ten firms are carrying out no public sector work at all, and the reasons given, low margins, price-based tendering and administrative burden, are within Government’s ability to address.”
Looking ahead, the CIF is calling for reforms to public procurement processes to encourage greater industry participation and support the pace of housing and infrastructure delivery.
Brownlee said: “The construction sector enters Q3 2026 with positive momentum, supported by strong export performance and cost inflation that, while still elevated, has moderated from earlier in the year. The clearest constraint on the industry’s capacity to deliver is public works participation, with four in ten firms carrying out no public sector work at all. CIF is calling for reform of public procurement to broaden participation and support the pace of housing and infrastructure delivery.”
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