For many years, business investment in Northern Ireland has stalled. Against the backdrop of political instability at Stormont, a lack of long-term planning and strong decision-making has been a major influencing factor on companies’ confidence to venture into our region. There are genuine and ambitious opportunities for growth, with a pent-up ambition for investment that can enable Northern Ireland to thrive in the same way as other areas of the UK, writes Kevin McNaull, Associate Director, Northern Ireland, at Turner & Townsend
This week, we’ve seen further deliberation and the potential stalling of the much-heralded Windsor Framework with the European Union. While there are opposing views on the best route forward, there is growing appetite within the business communities to move the conversation on and help back Northern Ireland plc.
Moving on from Brexit dislocation
Of all industries, construction matters because it is the engine that drives wider growth – delivering the infrastructure, homes and offices required by a modern workforce. Yet for the construction sector, the impact of Brexit has been particularly severe. Companies worked hard to adapt and find new ways of working following Brexit, mitigating the effects of materials availability, increased prices and longer lead times. After the pandemic, we saw a rebound in activity, but this has been stymied due to macro-economic and geopolitical issues, not least the supply chain disruptions due to the Russian invasion of Ukraine.
Many of the larger local contractors have looked over the Irish Sea to Britain or south to the Republic where markets have been more buoyant. This lack of local opportunity has contributed to the region having the lowest productivity of any region in the UK. The outward migration of skilled workers following Brexit has not helped an already fraught situation with availability of skilled labour and construction sector professionals a significant concern for local businesses.
An opportunity beckons
The Windsor Framework, or a version of it that can become acceptable to all sides in NI, gives the region the potential to remedy some of these issues and unlock investment that could mark the beginning of a construction boom.
The agreement promises the best of both worlds by providing access to the EU and UK markets. This would make investment easier, building on successes like that seen with Harland & Wolff’s new Ministry of Defence contract. Ministers can have the confidence and ability to look at shaping a planned and proactive plan for industrial growth – with particular opportunities around green investment in renewables and sustainable manufacturing. In turn, this can increase NI’s attractiveness to the skilled workers that we so dearly need.
This kind of joined-up decision-making is important to maximise the benefits of new investment. One of the first priorities should be infrastructure – identifying the projects that are shovel-ready and therefore primed to deliver the biggest gains quickly.
Another is housing. At the moment, Belfast is one of the UK’s least populated major cities, with new build rates at historic lows. That needs to change if the city is to provide the homes needed for a reinvigorated regional economy.
We’re at a crucial moment for Northern Ireland to develop its long-term economic growth and become a leading low carbon sustainable economy. As we look optimistically toward a new chapter, careful planning will be essential to making sure the country is ready.
