The construction industry is an important sector for the Irish economy and it continues to grow at a solid pace. Alternative lending such as asset finance is a popular route to increase funding to aid expansion.
Construction industry output
Sector output growth in Northern Ireland is predicted at 1.6% up to 2021 (CITB), which, due to the uncertain climate the industry is facing, is slightly down from previous predictions. Despite this slowdown, prospects are still positive and the sector is set to withstand a changing economy. There has been a general upward trend in recorded output since late 2014, which points towards a continued recovery following the recession and future growth (NISRA).
Overall output for the Republic of Ireland is forecast to reach €20.2 billion by 2020 (CIF), while the PMI for the construction industry is at a high of 56.70 (November 2017).
The outlook for 2018
The outlook appears positive for business across the island of Ireland, with a quarter reporting growth in the past 12 months in the Close Brothers Business Barometer survey, with some citing growth of up to 40%. Trading conditions are remaining stable, with 40% of businesses across the island reporting stability.
One in five construction firms are confident about the steady recovery of the economy, and 18.1% expect business to expand in the next 12 months.
Funding growth with asset finance
A third of firms in the industry are predicting that rising costs will be the biggest challenge they face in 2018, while over half of businesses review their funding annually. 42.2% construction companies have heard of asset finance, however those that haven’t could be missing out on a sustainable form of funding to power continued business growth.
Close Brothers offers a range of flexible asset finance funding options including hire purchase, leasing and refinancing which can help firms purchase or refinance capital equipment to keep business moving.