The outlook for Ireland’s construction industry remains bleak with 50% of companies anticipating further restructuring and redundancies in 2010, a new survey has suggested.

According to Roger Alexander, head of Construction & Property at accountancy and consulting firm, Mazars, over three quarters of companies are also predicting further contraction in turnover due to "cut throat competition for the few opportunities that are emerging".

"In Ireland, 82.9% of respondents are principally reliant on the Indigenous market for opportunities and business generation," said Mr Alexander.

"With the slowdown in opportunities, we are noting increased competition and a significant strain on margins with predicted further reduction during 2010. This will make it increasingly difficult for companies to operate profitably."

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The findings are published in the Mazars 'Irish Construction Outlook 2010 Survey' which was conducted in conjunction with Irish Construction Magazine. The survey gauges the attitudes and opinions of many of Ireland’s most prominent construction and property industry leaders at Chief Executive, Managing Director or Finance Director level covering over 250 organisations.

Most companies believe that 2010 will be a challenging year for their organisations and potentially even more difficult than 2009.

Roger Alexander continued: "There are a number of obstacles to growth for most companies but the most pertinent is a lack of a pipeline of projects. Companies are organically doing everything they can to face the current challenges by restructuring and entering new markets. There is a broad consensus that the government needs to do more in stimulating recovery within the industry but with the economic uncertainty, pressures on public spending and project planning requirements, this is unlikely to materialise in 2010.

"There is some optimism that the economy will improve as the UK and most other European countries come out of recession and general business confidence returns. In Ireland however, the market is still holding its breath in anticipation that momentum created by NAMA will assist in recovery."

(NS/GK)