Brexit: The Impact on Construction in Northern Ireland
The construction sector in Northern Ireland is in an exciting period of growth right now, but the looming threat of Brexit is causing some uncertainty and even anxiety for many business owners.
Last year the construction industry experienced a seven year high, according to figures from the Northern Ireland Statistics and Research Agency (NISRA). However the precarious nature of negotiations surrounding the UK’s departure from the European Union has cast a cloud for some.
Current Construction Market
NISRA reports that the sector is performing well. Figures show 3.6% of growth in 2017, with new work accounting for 65% of output. Repair and maintenance was 12.5% higher than the corresponding period of 2016.
However businesses are still facing significant challenges. The volume of public sector construction work put to tender has halved over the last twelve months. This period of relative inactivity is believed to be due to a combination of the collapse of the Stormont Executive and the continuing political stalemate, and uncertainty over Northern Ireland’s future, post-Brexit.
Gleeds, a global property and construction consultancy, conducted research which found that sixty six percent of industry leaders believe that Brexit uncertainty is having a negative impact on their business and the sector. Almost a quarter expect things to get worse in 2018.
Insurance and risk management has never been more important.
Maurice Boyd, Director at Abbey Bond Lovis says: “In addition to insuring property and premises and covering themselves for liability, construction companies should also consider surety bonding to provide extra confidence and to help businesses ride out any turbulence.”
While ensuring the right cover and policy is in place will help companies withstand a loss, should an issue arise, it is just as important to have the right advice and expertise on hand. To achieve resilience, businesses need a carefully balanced combination of risk management and insurance solutions – all designed around their specific needs and budget.
If you’d like some free, no obligation advicecontact our Belfast, Armagh or Coleraine teams.