Highlighting the challenges and opportunities facing the Irish construction and infrastructure sector, AECOM launched its 2026 review of the Irish construction industry at Anantara The Marker Hotel, Dublin 2 on Monday.
Now in its 51st year, this year’s report highlights readiness as the essential enabler of Ireland’s ambition to deliver major housing and infrastructure programmes at pace and scale, alongside actions being taken by the Government to remove delivery barriers. Defined as ‘strategic preparation’, readiness encompasses an organisation’s internal capability, such as having the right skills, systems and governance in place, as well as external factors like selecting appropriate procurement strategies and the provision of pipeline certainty to aid workforce attraction and retention.
The report also highlights construction industry output growth of 4 per cent in volume terms expected for 2026. While the outlook for tender prices in 2026 is likely to reflect the recent gradual upward trend in consumer inflation, with AECOM forecasting a 3 per cent increase in tender price inflation.
Residential completions are expected to fall well below the level of demand, exacerbating a persistent housing crisis, despite strong public investment. Viability issues, limited private investment and gaps in water, energy and transport infrastructure continue to impede the conversion of planning permissions into completed developments.
The ‘Ireland Annual Review 2026’ covers both the Republic of Ireland and Northern Ireland. It finds that while economic conditions remain generally favourable and record funding is available in the Republic of Ireland, structural and capability constraints continue to limit housing and infrastructure delivery.
In the face of these challenges, the industry’s usual ‘can-do’ attitude and resilience are being tested. ‘Report fatigue’ is growing at every level. Further delays in delivering critical infrastructure risk discouraging international contractors from entering the Irish market – and may prompt more Irish contractors and consultants to follow those who have already sought opportunities abroad.
AECOM concludes that with strong public finances, continued private investment and a resilient construction sector, the foundations exist to deliver development projects to support economic growth. The critical task is strengthening readiness internally and across the delivery ecosystem to unlock Ireland’s housing and infrastructure potential as swiftly and proactively as possible.
