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Ireland’s Demand for UK Construction Products Eases

The Irish construction industry is thriving and continuing to increase all imports from the UK. However, the pace of the growth is slowing according to recent reports by the foreign exchange specialists.

 

Whilst the industry is growing rapidly, there has been a significant drop reported in the results from an analysis of over 4000 transactions made by Fexco Corporate Payments over the past year. In the last three years, spending has gone up by 128%, increasing by less than 20% over the past twelve months. With Irish building firms spending a modest rate of 17% more on goods and services than they did in the previous year.

The number of transactions made increased by 7%, with the average transaction size reportedly rising by 7.5% - from €4,902 to €5,269. In the 12 months prior to February 2017, the average purchase size was recorded as €3,159, making the current results two-thirds higher at a great 66.8%.

Structural Defects Insurance

 

David Lamb from Fexco Corporate Payments said that; “The cooling of Irish builders’ appetite for UK imports is likely to be driven by two factors; a modest strengthening of sterling – which has risen by 4% against the Euro since the start of 2019 – and a greater willingness to import materials from other EU countries.”

“If Britain leaves the EU without a trade deal, Irish imports of construction materials from the UK would be subject to WTO tariffs of up to 6%, so clearly it makes sense to investigate alternative supply chains. However, the UK’s proximity and the ease of buying from British suppliers means it remains the number one source of imports for Ireland’s booming construction industry.”

“Even with sterling’s rally this year, a Euro is still worth 11% more against the Pound than it was on the eve of the UK’s Brexit referendum, making British imports an attractive way to mitigate the cost pressure of rising wage bills at home.”

While the industry is growing, specialists are interested in the upcoming statistical analysis of the future of product demands form Ireland, to clarify whether there will be another increase or a further decrease for the industry’s spending rates.

 

Specialists in Construction Insurance

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