Building firms in Ireland should look to France for future opportunities, accountancy firm Mazars has advised.
The Mazars Irish and Construction 2010 Outlook survey highlighted that over 80% of construction firms in the Irish market rely on indigenous work.
But as investment in infrastructure continues to contract in Ireland, both in the public and private sectors, firms are being forced to look at wider markets, and, according to Mazars, France has the most potential.
According to Roger Alexander, Head of Mazars' Project Finance, and of the Mazars Belfast Office, unlike Ireland and the UK, France has remained immune to a collapse of its commercial property market and has a strong pipeline of public sector projects which offer opportunities for Irish construction firms.
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"It is forecast that the French construction industry will still be valued at around €166bn in 2010, as opposed to €177bn at its peak in 2007," Mr Alexander said.
"Whether due to the degree of risk aversion, the market's maturity or other factors, France has remained immune from a collapse of its commercial property market and has had a strong pipeline of public sector projects, including PPP (public-private partnership) projects.
"Indeed, France has one of the most dominant pipelines of PPP and infrastructure projects in Europe, by way of transport, social accommodation and renewable energy," he said.
The French economy also appears to be rebounding, even if there are uncertainties about the pace of the revival.
"So far, government stimulus programmes and companies reinvesting have been the main drivers of this growth," he said, also noting that the main projects defined by the French government's environmental Grenelle talks (in the construction, transport, energy and waste management sectors) will require almost €460bn of investment by 2020, of which €308bn will be in construction.
This will be split into €205bn for housing/buildings and €103bn for transportation.
(BMcC/GK)
