The impact of Brexit on cross border trade by the construction sector in Ireland - an exploratory study (original) (raw)

Abstract

Cross-border co-operation can foster learning and contribute positively to business performance and social cohesion. This paper considers construction firms' economic motivation for co-operation around the Ireland Northern Ireland border. This area, while impacted by the Brexit uncertainty, shares many of the economic and developmental characteristics of border areas throughout Europe. The purpose of the study is to investigate the impact of Brexit on cross border trade by the construction sector in Ireland and investigate the current tensions and barriers to that sector. A qualitative methodology adopted a literature review and semi-structured interview strategy. Data was collected from purposively selected contractors in the North and South of Ireland, who have recent experience of cross border construction. Qualitative analysis identifies themes and issues arising which enabled examination of commonalities and differences between the respondents. Differing regulatory regimes,...

Key takeaways

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  1. Brexit significantly complicates cross-border trade in the construction sector between Northern Ireland and the Republic of Ireland.
  2. The study investigates tensions and barriers affecting construction firms' cooperation post-Brexit.
  3. Currency fluctuations have led to increased material costs, impacting project pricing and profitability.
  4. Existing regulatory misalignments hinder cross-border trade, with additional administrative burdens discouraging participation.
  5. The construction sector in Northern Ireland faces a predicted output drop of 4.9% due to Brexit-related uncertainties.

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References (25)

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FAQs

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What predicted economic impacts does Brexit have on Northern Ireland's construction sector?add

Oxford Economics predicted a 4.9% drop in construction output in Northern Ireland due to Brexit's impact on business investment.

How has currency fluctuation affected prices in the construction industry post-Brexit?add

Post-Brexit, Sterling's value fell from £1.29 to £1.14 against the Euro, causing a 60% increase in steel prices.

What barriers currently restrict cross-border trade in the construction sector?add

Barriers include misaligned regulations and administrative burdens, as seen in recognition issues for health and safety cards.

How has Brexit influenced employment patterns in the construction sector?add

Construction firms reported heavy dependence on EU workers, with aging local workforce complicating recruitment efforts.

What opportunities have emerged for the Republic of Ireland's construction sector due to Brexit?add

The Republic of Ireland may benefit from foreign investments, with financial institutions moving bases there prior to Brexit.

Last updatedOctober 11, 2025