BUILDERS are building again as confidence in the north's construction sector is at its highest in more than two years, according to the latest Royal Institution of Chartered Surveyors (Rics) and Tughans quarterly barometer of the industry.
Northern Ireland was one of the only areas of the UK to see a pick-up in the pace of output growth (a net balance of 27 per cent) in the final quarter of 2016 - and the significant majority of respondents (83 per cent) expect workloads to rise during the course of this year.
The findings come days after a separate report for Deloitte found that the building sector in Belfast has experienced its busiest year since 2008, with 30 major schemes either currently under construction or recently completed.
According to Rics, housebuilding remains a key source of workload growth for Northern Ireland construction surveyors, with private housebuilding activity rising particularly strongly. Private commercial activity was also rising firmly, according to the survey.
But in contrast infrastructure workload growth remained weak and was significantly below the UK average, while labour shortages and rising costs are also an increasing concern for the sector.
Rics' regional construction spokesman Jim Sammon says the picture painted by the quarter-four survey "is one of growth, and expectations".
The majority of respondents in the study anticipate that the year ahead will see a considerable improvement, driven by rising activity in Belfast, where a significant number of hotel, office, and student accommodation projects have come on site.
"Local companies are also continuing to do a significant amount of work in GB, and increasingly Dublin, where the market is buoyant and appears sustainably so," he added.
But Mr Sammon cautioned: "Challenges for local firms remain, however, in terms of skills and price inflation, and a number of respondents are also citing delays in planning as holding back investment.
"We also need to see more broad-based activity beyond Belfast into other parts of Northern Ireland.”
He added: “The lack of growth in infrastructure workloads remains a key concern for Northern Ireland. Infrastructure investment from both the private and public sectors, is essential to delivering long term growth, particularly as we seek to continue to attract foreign direct investment.”
Michael McCord from Tughans Solicitors said: “The survey is another indicator of increased sentiment in the Northern Ireland business community, and it is encouraging that surveyors expect workloads to rise this year.
"Clearly some uncertainty lies ahead, and rising input costs may impact on profitability, but a weak sterling also has the potential to help increase the competitiveness of Northern Ireland companies working in the eurozone.”
