Brexit takes more than just UK funds

As we are all well aware of by now, Brexit may affect the Irish economy. Although, one key part of the economy that we tend to overlook when it comes to this massive change is construction, which can and does play a significant role in our day-to-day life decisions.

Construction is much more intricate than just having laborers come in, swing around some tools, and build a structure. Specifics in supply and demand of laborers, resources, time, materials, consumers, money and a multitude of others aspects all play a part in construction outputs.

If Brexit is to occur, especially a no deal Brexit, there are a number of barriers that can arise. These barriers can and will be placed on construction companies, especially those currently working on a project. Some of these barriers include a reduced labor force, slower materials delivery, and possible construction penalties.

What current construction workers point out is that there is a steady decline in the amount of workers each year, and an even steadier decline in quality construction workers. If a hard …

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Yet Another Warning of a Property Bubble: More Perspectives

The Organization for Economic Co-operation and Development has voiced fears that the economy is overheating. This comes soon after the Fiscal Advisory Council heeded similar warnings earlier this week.

The OECD believes that the banking system is still fragile, with bad loans still accounting for 17% of the total. And while the government has already put into place plenty of macro-prudential policies, there is still the possibility that rapidly rising prices lead to another bubble and burst that would disrupt the delicate economy.

Indicative of OEDC’s stance, overall property market prices are up 8.2% this year at the end of April. The boom in construction is already visible on Dublin’s skyline. Irish Times counted 70 construction cranes towering over Dublin from the 7th floor of their office building on June 1st. This number represents a sizable increase compared to the number Irish Times counted in the first few months of this year. The number of cranes is predicted to continue to rise based on the number of large …

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Danger of a new housing bubble?

While the economy is still in recovery, housing supply has been quickly picking up in the past few years. With government construction plans such as the 2013 Forfas Strategy, Capital Investment Plan, and Action Plan for Housing and the Homeless, the housing boom will likely continue if not further accelerate in the years to come.

There are voices of warning: the Fiscal Advisory Council warns that the trends in output and employment in the construction industry may overheat the overall economy, leading to rapidly raising prices and wages. There are also those who believe that output in the construction industry is recovering slowly and still well below what it should be. DKM Economic Consultants recently published a report lamenting a lack of skilled personnel in construction and advocating for greater government funding and availability of apprenticeships.

Acknowledging that the housing supply response is driven by pent up demand, The Fiscal Advisory Council warns that the speed and scale of the response is the real issue. A dramatic increase …

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