Sunday Times August 25: Construction Sector Revival? - Dr. Constantin Gurdgiev → trueeconomics.blogspot.co.uk/201 … st-25.html
Faced with past false starts in the data and promotional advertorials in the media, we may be tempted to write off the building and construction sector altogether. This would be a mistake for at least three reasons.
Firstly, traditionally, the building and construction sector acts as one of the leading indicators of real, sustained economic recovery. In particular, in normal recessions, the recovery is led by the early return of firms to capital investment, including in buildings and structures, usually closely followed by an increase in residential investment by the households. Both the US and the UK are showing this pattern over the last two years. While Ireland’s recession is driven by deeply structural factors , one can expect any sustained growth momentum to occur only on foot of renewed domestic investment.
Secondly, based on real factor costs calculations, Irish building and construction sector contributes directly 1.6 percent of Irish GDP today. This is a significant contribution, although it is just a half of the average contribution recorded over Q1 1997 - Q1 2013 period. Furthermore, building and construction contribution to GDP rose by 7.3 percent in Q1 2013, while the overall GDP at factor costs declined 1.3 percent. Bringing Ireland’s building industry to the long-term sustainable levels in volume and value implies increasing its direct contribution to the GDP by over EUR1.5 billion on current levels to EUR3.8-3.9 billion. Reaching this level of activity will put Irish building and construction sector output ahead of that by the agriculture, forestry and fishing.
Thirdly, some of the recent data on building and construction sector does warrant extremely cautious optimism.
there is more
Due to the false and utterly unsustainable boom, which destroyed the real workaday construction industry - and we had a good one for a while - the best that can be hoped for is a very broad backwards ‘J’ in my opinion.
Mikey
September 3, 2013, 10:34pm
#4
Sisk problems in London:
Sisk Replaced on Shard hotel fit-out
Hotel operator Shangri-La has removed John Sisk from its £40m fit-out job on the Shard, which is presently running more than six months late.
Byrne Brothers-owned fit-out arm Chorus is understood to have been drafted in to complete the luxury hotel job, which is understood to be nearing completion.
November is now said to be the target opening date, almost a year later than first programmed.
A spokesman for the John Sisk Group said: “John Sisk & Son can confirm that it is no longer working on the Shangri-La fit-out at The Shard.
“Despite our best endeavours, we have not managed to find a way forward with Shangri-La and a decision has been made to end the relationship.”
A subcontractor source said: “Sisk faced a lot of technical challenges on the job and there were design changes throughout which hindered progress.”
Working between floors 34 and 52 of the 1017 feet high Shard has proved challenging because of restricted access and storage space.
The hotly-contested job was won against rivals Chorus, Mivan, Mace and ISG and was a major coup for Sisk as its largest fit-out win in London.
The 13-month long contract got underway in January 2012 . But during the early summer Shangri-La admitted it was taking bookings for a new September opening date. But this has been rescheduled once more.
A statement from the hotel operators said: “Shangri-La Hotel, At The Shard has decided to end their relationship with the present contractors for the fit out.
“A new contractor has been appointed to complete the work. Shangri-La Hotel at The Shard is fully committed to opening and running their latest European hotel.”
constructionenquirer.com/2013/09/03/chorus-replaces-sisk-on-shard-hotel-fit-out
