Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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394. To ask the Minister for Enterprise, Trade and Employment the residential construction productivity levels recorded in 2023 and 2024; how these compare to EU averages; and the measures planned to increase productivity to meet the housing targets. [63924/25]

Peter Burke (Longford-Westmeath, Fine Gael)
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A recent analysis of Residential Construction Productivity levels, including for the years 2023 and 2024, is contained in the Central Statistics Office web publication (September 2025): Productivity Construction: A National Accounts Perspective 2024. Here, labour productivity is calculated as output per hour worked, where output is measured as Gross Value Added (GVA) in constant prices. The latest available data shows that labour productivity for the Construction sector as a whole was €43.5 per hour in 2024, marginally higher than €43 per hour in 2023. In 2024, 324 million hours of work were estimated for the construction sector, an increase of 10.4% on 2019 (pre-COVID), when 293.5 million hours were worked. Quoting latest Eurostat comparative data in the same publication, the CSO reports that in terms of labour productivity in the construction sector, Ireland was ranked 7th in the EU-27 in 2023. Construction productivity data is not currently available for the residential construction sector.

One of the actions in the Government's recently published Action Plan on Competitiveness and Productivity published by my Department in September 2025, is to prioritise increased construction sector productivity in national infrastructure and housing programmes, through further embedding supply and demand-side initiatives at design and procurement stages and strengthening industry capability through initiatives such as Enterprise Ireland’s 'Built to Innovate' and the Construct Innovate Technology Centre, and development of the national MMC Demonstration Park at Mount Lucas; maintaining a focus on digitalisation, sustainable practices, lean processes and adoption of MMC.

My Department, working closely with the Department of Housing, Local Government and Heritage, and other relevant stakeholders, is progressing work to increase innovation and delivery capacity in the residential construction sector, including through promoting the adoption of Modern Methods of Construction (MMC). This is a strong focus in the Government's new Housing Plan, Delivering Homes, Building Communities.

MMC is an umbrella term used to capture a range of innovative construction processes that includes 2D panelised housing systems and 3D volumetric/modular pod systems. More widespread adoption of MMC can help increase productivity in home building; cutting construction times and helping in the faster delivery of high-quality, sustainable, and more-affordable housing.

Initiatives led by my Department to support construction innovation and MMC adoption include:

• The establishment of Construct Innovate, an industry led technology centre, bringing together research and industry that focuses key construction challenges, particularly in housing;
• Enterprise Ireland’s ‘Built to Innovate’ package of innovation and productivity supports to the domestically focused residential construction sector that to has to date made grant support of over €6.5 million in total available to 45 companies in the residential sector to drive adoption of efficient construction practices, digitalisation, and the use of MMC; and
• National Standards Authority of Ireland (NSAI) working to enhance Ireland’s Agrément system that enables innovative construction products and systems be brought into use in compliance with Irish building regulations.

• Use MMC in at least 25% of all new social and affordable homes built during the lifetime of the Plan.
• Scope potential for the development of an Irish Standard for Light Gauge Steel.
• Promote opportunities for MMC manufacturers to use ISIF backed funds to support new and existing factories.
• The Local Authority Accelerated Delivery Programme, which continues to deliver at least 1,500 MMC units across Local Authorities.
• Increase the use of 3D Volumetric via funding and support for pathfinder projects in Limerick and Wexford.