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AECOM in Ireland: Profi Le reviewAECOM Ireland Annual Review 2017 North South Interconnector, CoverAECOM photo: services: Overhead line routing, consultations, Dropbox,environmental impact assessment, expert witness for Oneoral hearingPark Place, and Hatch public Street inquiry. Upper, Dublin 2. AECOM services: Project management, cost management. Image courtesy of Donal Murphy Photography Current projects include: A6 Randalstown to Castledawson, Northern Ireland Department of Justice, Value for Money Review of Prisoner Transport Athy Distributor Road, Co. Kildare Dublin Airport Authority runway works BBC, Northern Ireland Dublin Airport capacity development Beaumont Hospital, Dublin Dublin Airport masterplan Belfast City Council, Leisure transformation programme Dublin City Council Ballymun boilerhouse, Dublin Belfast City Council Office Dún Laoghaire Shopping Centre, Dublin Bon Secours Hospital North Block Extension, Cork D7 Educate Together primary school, Grangegorman campus Brown Thomas, Dublin & Cork Endoscopy, Physical Medicine and Oncology, Capital Dock, Dublin Naas General Hospital, Co. Kildare Castlebar Hospice, Mayo ESB, Project Fitzwilliam fit out, Dublin Castletownbere Transport Study EY Offices, Dublin, Limerick and Belfast Cath lab and theatre, Our Lady’s Children’s Hospital Crumlin, Failte Ireland capital programme Dublin Foynes–Limerick improvement scheme, Limerick Central Bank headquarters, Dublin Frascati Shopping Centre, Dublin Churchfield Housing Phase 1, Southill, Limerick Grangegorman Development Agency, primary care centre, Citi North Wall Quay amenities, Dublin Dublin Clancy Quay residential scheme, Dublin Grangegorman Development Agency transport planning Clare Cultural Centre, Ennis, Co. Clare advisory services, Dublin Coláiste Chiaráin, Limerick Hynes Building, Galway Connemara Visitors Centre, Galway Irish Glass Bottle site, Dublin Cork City North West Primary Care Centre IT Tallaght campus, Dublin Cork-Limerick Strategic Corridor Assessment JP Morgan, Dublin Courts bundle PPP, Ireland Liffey Valley Shopping Centre, West Dublin Curragh Racecourse, Co. Kildare Limerick City & County Council, Opera site DCU Block F teaching block LinkedIn Headquarters, Dublin 2 AECOM Contents Introduction 3 Industry review: Republic of Ireland 5 2016 performance and medium term outlook 6 Sector performance 8 Construction costs and tender prices 11 Industry review: Northern Ireland 13 Business intelligence 17 Angela McGowan, Regional Director, CBI Northern Ireland 18 Danny McCoy, CEO, Irish Business and Employers’ Confederation (Ibec) 20 AECOM in Ireland: profi le Geographies 23 Ireland 24 European construction activity trends 28 Thought leadership 31 Event venues: a catalyst for regeneration 32 Empty building syndrome 34 AECOM 2017 Review Survey results 36 Indicative building costs 38 AECOM in Ireland news 39 AECOM 1 AECOMRoscommon Ireland County Annual Council Review Civic 2017 Offices, Roscommon. AECOM services: Cost management. Image courtesy of Christian Richters Photographer Introduction 2017 – Ireland needs significant infrastructure and residential spend to sustain economic growth At the Dublin launch of AECOM’s development in central Belfast also continued growth in construction 2016 Ireland Review, economist, Jim increased, with office rents at about output forecast across the Island, Power, warned that the biggest risks half central Dublin levels. Similarly the opportunities remain strong. to continued economic growth across rent across the residential sector also As we previously noted, skills the Island were uncertainties in the shows a disparity, with typical rent in shortages and cost competitiveness national and international economic Belfast around 35 per cent cheaper are the principle risks. On a macro and political arenas. Twelve months compared to the equivalent in Dublin. level, the risks are likely to be the on, we have a minority government in same uncertainties that Jim Power the Republic of Ireland and political AECOM analysis 2014 (see page previously identified, such as Brexit, uncertainty in Northern Ireland, the 6), suggests that if the ROI’s coupled with increasing political UK has voted to leave the EU and construction industry had progressed unease across Europe and the Donald Trump is the president-elect at the recognised ‘normal’ level of potential for rising international of the United States. 12 per cent of GNP from 2009 to energy costs to hit growth. 2016 inclusive, there would have Despite these upheavals, economic been €63 billion more spent on This review looks at these output in the Republic of Ireland (ROI) construction compared to actual opportunities and risks, and includes continues to rise, with the Economic spend in the same period. This is interviews with Irish Business and and Social Research Institute (ESRI) an oversimplification, but it is clear Employers’ Confederation (Ibec) estimating GDP growth of 4.2 per that years of under investment by CEO, Danny McCoy, and the Regional cent in 2016; the fourth year of strong the private and public sectors in Director of the Confederation of growth. Construction output has also physical and social infrastructure British Industry (CBI) Northern Ireland, continued to grow at pace, with an will diminish the attractiveness of Angela McGowan, who share their estimated 15 per cent increase in the the Island as an investment location thoughts on the uncertainties of value of output during the year. While if spending is not accelerated. For Brexit and a Trump presidency. there has been significant growth our 2017 Annual Review, we have across all sectors and the ROI regions, carried out a survey of approximately It also contains thought leadership the central Dublin commercial sector 4000 people from across the Island’s articles and detailed AECOM 2017 is booming. Other sectors, such property and construction sectors. Review Survey findings. as retail and residential, must While the results of our 2017 Review perform better in 2017 and beyond Survey suggest the general sentiment We hope you enjoy the read and look to catch up. is very positive, a key finding forward to delivering more exciting indicates that skills shortages, cost projects with you in 2017. Meanwhile, Northern Ireland’s competitiveness and deficiencies economy continued to grow at a in physical infrastructure have modest level in 2016. Construction presented challenges in attracting John O’Regan output in the 12 months to mid 2016 foreign direct investment. Programme, Cost, Consultancy Lead, was up 8 per cent compared to the Ireland previous 12 months, with continuing So, what are 2017’s potential growth anticipated. Commercial office opportunities and risks? With john.o’[email protected] AECOM 3 AECOM Ireland Annual Review 2017 It is essential that we attract back our skilled resources, maintain competitiveness and work to a cohesive plan to address the significant deficits from seven years of under investment. LinkedIn, Munich, Germany. AECOM services: Integrated multidisciplinary services. 4 AECOM Industry review: Republic of Ireland AECOM 5 AECOM Ireland Annual Review 2017 2016 Performance and to the right. Here we are stuck in the recruitment being seen as the biggest medium-term outlook middle”, on social media. The truth is, challenges to business; it is clear By any measure, 2016 has been no one really knows how these events that the drive to attract experienced another good year for the construction will impact the economy generally, let craftsmen and industry professionals industry. Employment has continued alone the construction sector. to the sector will move into full swing in to grow, with the number employed in 2017 as more projects begin. the sector up over 9,000 in Q3 2016, When asked specifically about the compared to the same period in 2015, impact of the UK leaving the EU, Domestically, businesses involved while planning permissions granted for respondents to the AECOM 2017 in public sector schemes will be non-residential floor space were up 70 Review Survey were largely pessimistic, required to adopt the interim public per cent in the 12 months to July 2016, with 49 per cent believing Brexit will works contract measures, which creating a positive outlook for 2017 have a somewhat or very negative become mandatory in 2017. While and beyond. With 2016 construction impact on their businesses over 2017- the nine-month transitionary period output sitting at around €14.5 billion 2018, followed by 34 per cent who has been beneficial for the industry, it in 2016, this represents a 15 per cent were neutral and 17 per cent who feel is still early days. Only in 2017 will we increase on 2015, largely driven by somewhat or very positive. have a better understanding of how the commercial boom and to a lesser the measures are being applied and extent by the residential market which Nevertheless, respondents had an received by the industry. Certainly the is starting to increase output, albeit overall positive outlook for 2017, with measures are being seen as a positive much slower than required. It is also 69 per cent expecting business to move; however, there are concerns worth noting that construction activity grow, with those who proffered an regarding the complexity of the started to pick up in the regions in estimated percentage of this growth process; the additional time needed the second half of 2016, but remains averaging 21 per cent. We expect for tender evaluation and award; the sluggish compared to the greater the value of construction output risk that projects will stall;
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