Welcome to the fifth volume of the Building Information Index
This volume of the Building Information Index provides insight and key analysis of activity in the construction industry for the first six months of 2016. It also provides an invaluable foresight as to what remainder of 2016 and 2017 will bring. I hope you find it informative.
In this volume actual activity for the half year to the end of June 2016 is compared to the same periods in 2015 and 2014. The analysis takes a close look at the construction industry broken down by region, funding source and sectors; Residential, Commercial & Retail, Medical, Education, Agriculture, Industrial and Social.
The total value of Construction Project Commencements grows by €1.12bn (+44%) for the six months to end of June 2016
The value of construction project Commencements for the first half of 2016 has grown by +44% when compared to the same period in 2015. This shows continued strong growth building on what was reported in previous full year index for 2015. Year on year comparison for the first six months showed a growth of 97% when compared to the same period in 2014. Five of the seven sectors examined registered growth. The Education sector recorded the largest percentage growth with Commencements up +148% (to €218m) on 2015 figures. Residential, the largest and most significant sector continued with strong growth of +61% year on year and with the value of Commencements at €1.67bn. The Agricultural and Social sectors reported a decrease of -28% and -22% respectively.
Value of Applications static
The value of construction project Applications remained static at €8.3bn when compared to the first six months in 2015. This does however represent an increase of +37% when compared to the same period in 2014. The Commercial & Retail and Agricultural sectors reported gains of +73% and +37% respectively, with the remaining sectors reporting marginal decreases. Residential the largest sector, was down -15% on 2015 with total Applications of €3.8bn to the end of June 2016 compared with €4.5bn in to the endof June 2015.
The Building Information Index is measured by factors that correlate with the phases in a construction project. The first is project Commencements which relate to projects that are in progress on-site and where construction activity has started. The second is Applications which are a real time barometer of sentiment in the construction sector and relate to all projects yet to be approved for planning. Thirdly we look at projects that have been granted permission. This shows projects that are further along in the cycle, and being approved, they show more short term potential in the market.