A new survey – Export Market Watch – has found that since the Brexit vote, nearly half (45%) of Enterprise Ireland construction firms have reduced their exposure to the UK, with almost seven in 10 firms surveyed now viewing the Eurozone as providing key opportunities for growth.

The new publication by Enterprise Ireland, in conjunction with Investec, is designed to help support the global ambitions of Irish firms by providing insights into developments across the country's major export markets, as well as the outlook for exchange rates, to support their diversification plans. In this quarter's report, Enterprise Ireland and Investec look at the prospects for the Irish construction sector internationally.

Despite 45% of respondents having taken steps to cut their UK exposure since last year's Brexit referendum, the UK is still identified as the country with the best near-to-medium term opportunities by Irish construction companies.

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For those retaining a presence in the UK, currency volatility is a key issue for construction companies looking to price and tender longer-term projects. Respondents indicated that they are increasingly looking to mitigate currency risks through sourcing more UK suppliers, while others have introduced more conventional currency and raw materials hedging tactics. Key opportunity areas identified in the UK are largely around housing, ‘Build to Rent’ schemes and public infrastructure.

New markets, particularly the Eurozone, will grow in terms of importance in the next few years for companies who provide specialist data centre and pharmaceutical plant construction expertise. While 52% of firms currently do business with the Eurozone, 69% view it as offering attractive opportunities for them. However, only one in three companies believe that they currently have sufficient resources in place to expand into new markets and market knowledge is cited as the highest barrier to entry.

Stephen Hughes, Head of Construction at Enterprise Ireland said: "From an export perspective, construction exports by Enterprise Ireland clients are at an all-time high and many construction companies that diversified during the downturn, are now well positioned to capitalise on global growth in key markets.

"We can see that the constraints of moving into a new market identified by our respondents are multifaceted. Equipping construction firms with the skills to overcome these challenges will likely deliver tangible benefits, with 72% of respondents saying that they would increase their employee numbers if they move into new markets. Enterprise Ireland has developed its Eurozone Strategy, and is providing Building Information Modelling (BIM) training, to help equip such companies to build scale and expand their reach in this important marketplace."