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Turner & Townsend releases new market intelligence as labour inflation outpaces materials and public housing leads sector performance

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Turner & Townsend has published its latest Republic of Ireland Market Intelligence Report (Q3 2025), highlighting a stabilising construction market marked by rising labour costs, easing materials inflation and strong performance in public housing.

Contractor-reported data shows labour inflation at 3 percent, outpacing materials, which increased by 1 percent over the past 12 months. Mechanical and electrical trades saw the largest increases, with plumbers and electricians rising by 4 percent. Looking ahead, contractors expect both labour and materials to increase by an average 3 percent over the next year.

Housing continues to lead sector performance, with 56 percent of contractors identifying it as the strongest-performing area. Public housing is now outperforming private residential delivery, supported by strong activity in public works and education projects, which contractors also identified as among the best-performing areas. National output data for Q2 2025 shows residential building up 1.8 percent quarter-on-quarter, despite an overall construction output decline of 0.5 percent.

The report identifies skilled labour shortages as the industry’s most significant challenge, with the highest impact score (3.5/5). Government red tape (3.1) and rising construction costs (2.7) also continue to constrain delivery. Respondents additionally note increased competition, with “too many contractors chasing too few projects” now ranked among the top three supply-chain pressures.

Market sentiment points to cooling conditions: 69 percent of contractors say the market is “staying the same,” while 19 percent believe it is cooling. One in five now describe tendering conditions as “cold,” defined by intense competition and lower pricing – a significant shift from last year. Despite this, contractors are operating at an average 81 percent capacity, although order-book visibility declines sharply beyond 2026.

Tender price inflation forecasts remain steady and below 3 percent over the medium term, with contractors expecting 2.9 percent in 2025, 2.2 percent in 2026, 2.6 percent in 2027, and 2.4 percent in 2028.

Philip Matthews, Managing Director, Turner & Townsend Ireland, said:

“Our latest survey highlights that ‘high demand for skilled labour and uncertainty in the supply chain is a major challenge’, with respondents also warning that ‘resourcing, contractor capability and availability… will continue to cause issues through 2025 and 2026.’ Despite this, contractors describe the pricing environment as stable, making it, in their words, ‘a good time for the public and private market to tender works.’”

The report is available in full at https://viewer.foleon.com/preview/91mpo3c6qnv/ .

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Reynaers wins Commercial Project of the Year at the G-Awards

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Reynaers Aluminium UK was named as the winner of the ‘Commercial Project of the Year’ at this year’s G-awards in recognition of its involvement in the high-profile Wembley Park regeneration project.

Reynaers received the prestigious award for its contribution to the Wembley NEO2 and NEO3 high rise buildings      where its innovative systems helped to achieve developer Quintain’s vision for this ambitious £227m project. 

The Reynaers team were joined by representatives from Everglade Windows Ltd and Quintain Limited, at the London Hilton Park Lane to receive the award, and to join in the celebration of innovation and best practice within the fenestration industry.      

In continuing with 10-plus years of collaboration with the award-winning development and assets management team at Quintain, Reynaers was appointed as a preferred supplier to the project from the early stages. The team at Reynaers worked collaboratively with Everglade Windows Ltd and Quintain Limited to successfully deliver the project performance specifications. 

Designed to provide high-quality, multi-occupancy housing, the aim of the North East Lands development was to enhance the residential offering at Wembley Park, prioritising safety and building performance as part of a community built around a world class stadium.

Reynaers’ commitment to quality through testing and research was essential in providing window, door and curtain walling systems to support the level of glazing required to provide high performance standards across the board, including security, air, wind and water performance, acoustic resistance and thermal efficiency.

Reynaers ConceptWall 60 (CW 60) curtain walling, MasterLine 8 windows and doors, and MasterPatio sliding doors were used across the project, providing the robust design and superior framing needed to support the high performance requirements. 

The project was delivered to plan and on-time achieving completion in early 2025, with the NE02 and NE03 development marking one of London’s first major Gateway 3 approvals.

Samantha Hill, Head of Marketing at Reynaers Aluminium UK said: “We are delighted to have received the award for Commercial Project of the Year at this year’s G-Awards and honoured to be included amongst our industry colleagues to celebrate the amazing achievements of all the finalists and winners.

“Our contribution to the landmark development at Wembley Park relied on early collaboration between our technical experts and consult team, and multiple stakeholders to ensure that a combination of high-end, aesthetic aluminium frames with top level performance were in place to serve the quality and design needed for this large-scale project.

“The G-Awards is pivotal in highlighting the innovation and excellent work that takes place across the fenestration industry, and it was delightful to attend such a prestigious event and return with such a highly coveted award. I would like to take this opportunity to thank the G-Awards team for their hard work and dedication, and to say a huge congratulations to all finalists and winners.”

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JP Corry Celebrates Marcus Harvey – Winner of Trainee / Apprentice of the Year 2025 at the Builders Merchants Awards 2025

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JP Corry is absolutely delighted to announce that Marcus Harvey has been named Trainee/Apprentice of the Year 2025 at the prestigious Builders Merchants Awards in London. This remarkable achievement has been met with immense pride across the business, with colleagues, customers, and suppliers all delighted to see Marcus receive the recognition he so thoroughly deserves.

Marcus joined JP Corry in May 2022 at just 17 years old through the JobStart programme—a 26-week placement that marked the beginning of a remarkable journey. Shy and reserved when he first arrived at the Trade Centre, Marcus quickly distinguished himself through his curiosity, willingness to learn, and determined work ethic. Guided by the support of colleagues Glenn and Rose, he consistently exceeded expectations and embraced every challenge that came his way.

Since then, Marcus has undergone an extraordinary period of growth. Between October 2024 and today, he has successfully completed a wide range of training and development programmes, including JobStart learning modules (completed ahead of schedule), Forklift Truck licensing, Fire Marshal training, and extensive cross-departmental experience spanning the yard, counter service, telesales, and security. These opportunities not only strengthened his technical knowledge but helped him build the confidence and leadership skills that define him today.

Marcus’s contribution to JP Corry has been both tangible and inspiring. His strong rapport with customers has earned him a loyal client base, and his adaptability has made him an invaluable support across multiple departments. His positive attitude, reliability, and genuine desire to help others have not only improved customer satisfaction but also boosted team morale across the business.

In recognition of his impressive development and professionalism, Marcus was selected for a full-time Telesales position ahead of more experienced colleagues. He has already been shortlisted for other industry accolades, including the Rising Star award at the 2024 Octabuild Awards. His journey also caught the attention of Communities Minister Gordon Lyons, who met with Marcus to hear first-hand about his experience with the JobStart programme.

Speaking about Marcus’s award win, Scott McDonald, Branch Director from JP Corry, praised his dedication and future potential:

“Marcus is an exceptional young man whose hard work, attitude, and commitment have made a lasting impact on our business. We couldn’t be prouder of his achievement today. This award recognises not only where he is now, but the incredible future ahead of him.”

Marcus, who hopes to progress into construction management, continues to demonstrate ambition far beyond his years. His journey from a quiet placement student to a confident, capable, and trusted colleague is a testament to the power of opportunity, support, and determination.

Everyone at JP Corry is absolutely delighted for Marcus and excited to see what the future holds for this bright, courteous, and talented young professional.

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Offices stand empty while Ireland faces housing shortages – New report poses solutions 

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  • Changes to Irish city development plans will allow office building to solve the housing crisis says CIOB
  • Across Ireland, 14.5% of office buildings were vacant in 2024 – the highest level on record
  • Dublin had the highest office vacancy rate (15.7%) of any major European city in 2024
  • More than four fifths of people in Ireland and Northern Ireland say they are concerned about the current housing situation in their cities. 

A new report from the Chartered Institute of Building (CIOB) is calling for planning regulation changes to make major urban buildings adaptable — potentially turning future vacancy into much-needed homes.

In a recent CIOB survey, more than four fifths (81%) of people in Ireland and Northern Ireland said they are concerned about the current housing situation in the cities they live in, and more than half (52%) say they feel stuck in their current home due to a lack of alternative options.

Nearly two thirds of respondents (64%) said they do not believe new construction is building what their city needs, and over half (52.5%) said their area has an issue with a surplus of offices.

This chimes with the national level data cited in the CIOB report, ‘Building Adaptably: How the construction sector can future proof Irish cities’, which highlights how commercial vacancy reached its highest ever level in 2024.

Since the Covid-19 pandemic, it is estimated 58% of office workers now spend more time away from the office than they do in it, leading to many companies downsizing their premises. Ireland’s commercial vacancy rate stood at 14.5% in 2024, with Dublin having the highest rate of any major European city. However, many of those vacant buildings are unsuitable for conversion to homes due to low ceilings, load-bearing internal walls and heating, ventilation and power systems that aren’t appropriate for residential properties or make changing the layout of the inside of the building difficult. 

CIOB’s report says if adaptability requirements had been in place when they were first built, the current mismatch of commercial versus residential real estate may not exist. It adds building adaptability is also environmentally sustainable as it avoids the need to demolish and rebuild, which reduces the embodied carbon footprint of the construction sector.

Joseph Kilroy, CIOB policy and public affairs manager for Ireland, said: “The clear concerns amongst Irish and Northern Irish people over the lack of housing options in the very places where office vacancy rates are highest, suggests a significant failure of the speculative building model to meet real demand. More than 80% have real concerns about the housing situation so it’s high time changes in how we build are made.

“In our view, the best way to achieve that change is to introduce adaptability metrics into the planning permission decision-making process. London, Paris and Amsterdam have each implemented such policies, thereby creating a potential new stream of future housing supply. The reforms we are suggesting would enable buildings to evolve alongside the societies they serve, converting underused assets into homes and communities rather than waste.”

The key recommendations in CIOB’s report are:

  • Introduce a mandatory requirement for adaptability assessments at the planning stage to ensure new developments are designed with future change in mind
  • Require planning applications for large-scale commercial or residential projects to include renovation and conversion scenarios as part of their design proposals
  • Offer tangible incentives, such as expedited planning approval to developers who adopt innovative, future-ready construction methods
  • Embed design-for-adaptability criteria into public land sales and procurement contracts to ensure publicly funded or facilitated developments are future-proofed for changing uses. 
     

Dr Michael Byrne, Lecturer at the School of Social Policy, Social Work and Social Justice, UCD, said: “The scale, depth and complexity of the housing challenge has become increasingly obvious over recent years. For some time now, it has been clear that the Irish housing system struggles to deliver adequate housing supply and that the wider real estate sector, in particular office space, is highly volatile. We also know that the role of housing in meeting our climate responsibilities is ‘the elephant in the room’ when it comes to housing policy debate. This report puts forward a compelling case for adaptability as a key concept and practice that simultaneously addresses all of these concerns. The report provides practical recommendations that have the potential to increase the supply of housing, enable the housing system and built environment to adapt to social conditions, and reduce the housing system’s carbon footprint.” 

The full CIOB report can be downloaded here

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Sisk announces 2025 Supply Chain Awards Winners

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  • Saint-Gobain named as Large Enterprise Supplier of the Year
  • Sitemate named as Small & Medium Enterprise Supplier of the Year
  • Total of 19 supply chain partners recognised on the night

Sisk has announced the winners of the prestigious Supply Chain Awards at the annual event in Dublin’s Convention Centre. The awards ceremony was hosted by Colm O’Regan and attended by over 900 industry professionals, acknowledging best-in-class suppliers from Ireland, the UK and Europe.

The Supply Chain Awards celebrate the collaboration between Sisk and its partners on a range of successful projects undertaken throughout the year. Some notable winners from the ceremony include STS Group (Life Sciences & Technology), Crean Contract Flooring (Ireland East) and Flannery Plant (Equality, Diversity and Inclusion). In total, 19 outstanding supply chain partners were recognised by Sisk for their contributions to the success of key projects.

On the night, Paul Brown, CEO of Sisk, presented a cheque to Focus Ireland for over €226,000 from its recent participation in the ‘Shine A Light’ sleepout to support Focus Ireland’s homeless services.

John Devereaux, Supply Chain Director, commented: “This has been another strong year for Sisk, with major accomplishments across our projects and operations. Our annual Supply Chain Awards offer an important opportunity to acknowledge and celebrate the exceptional contributions of our supply chain partners, whose expertise, collaboration, and commitment are central to our continued success. Their efforts are instrumental in advancing excellence and innovation across the industry. I extend my sincere congratulations to all this year’s award recipients and look forward to building on our shared success in the years ahead.”

Award TitleWinner
Health & Safety Award – 2025   Ardmac
Equality, Diversity & Inclusion Award – 2025   Flannery Plant Hire 
Digital Transformation Award – 2025   Roadstone 
Social Value Award – 2025   SES 
Sustainability Award – 2025   Select Plant Hire 
Modern Methods of Construction Award – 2025   Midland Steel 
Health & Wellbeing Award – 2025   Errigal Group 
Supplier of the Year – Small & Medium Enterprise   Sitemate 
Supplier of the Year – Large Enterprise   Saint-Gobain Gypsum 
Supplier of the Year – Plant & Equipment   Trimo Group 
Supply Chain Partner of the Year – Life Sciences & Technology   STS Group 
Supply Chain Partner of the Year – Data Centres   Deane Roofing 
Supply Chain Partner of the Year – Vision Built   Northwest Drylining 
Supply Chain Partner of the Year – Ireland East   Crean Contract Flooring
Supply Chain Partner of the Year – Regional Building   Tyrone Formwork 
Supply Chain Partner of the Year – Infrastructure – Ireland   Rossmore 
Supply Chain Partner of the Year – Infrastructure – UK   Sirius 
Supply Chain Partner of the Year – UK South   Halsion 
Supply Chain Partner of the Year – UK North   Project FF&E 

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Et Lorem x Willow Home Design alongside Rotpunkt

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Creating relaxed, elevated living with a thoughtfully designed open-plan kitchen for a modern family home in Bledlow, kitchen design specialist Et Lorem, designed and supplied a refined German kitchen by leading designer and manufacturer of climate friendly furniture, Rotpunkt, for a contemporary barn conversion in Buckinghamshire.

Curated in collaboration with homeowner and interior designer, Jade Glynn of Willow Home Design, who recently took up residence and longed for a contemporary living environment, which features a clean yet characterful kitchen living space that becomes a focal point, yet naturally blends with the rural architecture and open concept of her new barn conversion.

Taking a unified approach, Et Lorem viewed the kitchen, dining and living area as one complete space so that everything from the style, material and layout are fit for purpose. Designed to inspire greater human connection and sense of spaciousness in the home, Et Lorem supplied a climate-friendly luxury kitchen by German furniture manufacturer Rotpunkt, defined by quality raw materials, signature design elements, and the latest product innovation and technology.

0-2. Et Lorem x Rotpunkt

Contemporary Rotpunkt Ergo LX furniture in Matt White Lacquer is used across the tall cabinets, pantry doors and island drawers, with Tempo SY furniture in Bardolia Real Oak on the base units, end panels and shelving in the kitchen and secret walk-in pantry. The hidden walk-in pantry features the innovative access doors also by Rotpunkt, which open in reverse and can be designed in the same style and finish as the main kitchen interior. When in use, the illusive Ergo pantry doors open to reveal a galley style walk-in pantry so the homeowner can easily store food, kitchen supplies, and other household items away from the kitchen living space. Homeowner Jade says, “The furniture I chose by Rotpunkt creates a captivating centrepiece throughout my kitchen living space, which is high in character and unique by design. Plus, having lived with my Rotpunkt kitchen for some time now, its usability is also great with a layout and workflow that effortlessly serves my needs.”

With a distinct mix of materials, Et Lorem added depth and character to the kitchen and pantry by pairing warm wood cabinetry with white classic-style framed doors. Helping to create a lived-in look and feel that is inviting and neutral in colour, all Rotpunkt cabinets are finished with Hendel & Hendel handles in complementary dark brushed brass. The monolithic kitchen island effortlessly pulls focus to the main kitchen while subtly depicting the furniture and hardwood flooring by virtue of the warm white marble effect surfaces with grey-brown veining. With space to seat up to four diners, the island is specially designed at Rotpunkt’s special 910mm height, which creates more legroom while providing a more comfortable working height in the prep and wash zone. Jade says, “The 5-metre kitchen island, which steps down at either end is a great feature, as it helps to define the seating area with a dramatic waterfall worktop for added sense of grandeur. Another favourite is the angled worktop detail on the dining side of the island, which naturally draws the eye down to a beautiful bronze panel that is custom matched to reflect the design of my front door.”

Every element, from internal layout to finishes, was designed to support how the space is used such as the two standard height base units sitting either side of the elevated block island, which create extra storage and counter space. The culinary space located behind the central island offers a Lacanche range cooker, which introduces timeless character and a professional performance that is enhanced by a custom Dekton-clad cooker hood, and open shelving to soften and add balance to the space. Designed to conceal the practical elements of an open-plan kitchen living environment, the Westin extractor unit is a dominate feature in the cook zone and provides a direct link between the island and feature wall. Jade says, “One of the standout triumphs for me is the cooker hood — taking a purely functional component in a kitchen and elevating it to a notable statement piece, the custom hood flawlessly blends form and function without compromising performance.”

Helping to realise the overall colour palette and natural flow of the space, both homeowner and founder of Willow Home Design, Jade Glynn explains, “Having partnered with the exceptional team at Et Lorem on numerous residential projects, I knew their creative expertise would be invaluable when it came time to reimagining my own home. Interestingly, I took lots of inspiration from American-style kitchens due to the scale of my room matching their statelier style of interior design. A room of this scale can feel quite overwhelming, especially with a vaulted ceiling, so I did wonder how I would fill the space and be able to retain a homely feel. The result is a kitchen-living space that embodies ergonomic design, timeless style, and a tailored approach — a space that reflects my personal aesthetic while enhancing the way I live each day.”

Rotpunkt kitchens start from £17,500+vat (furniture only). Please contact Rotpunkt:

e info@rotpunktuk.com, w www.rotpunkt.co.uk (rotpunktkuechen.de)

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ELECTRIC JCB MICRO IS A HIT WITH HIRE CUSTOMERS

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A leading regional plant hirer has invested in one of the first electric JCB 8008E CTS micro excavators in in the UK.

Purchased by Yorkshire-based Wetherby Tool & Plant Hire, the JCB 8008E CTS is the latest addition to JCB’s zero-emission mini excavator line-up joining the proven 19C-1E in JCB’s E-TECH compact excavator range.

Supplied by TCH Harrison JCB, the JCB 8008E CTS shares its structure, bodywork and dig-end with the conventional diesel-powered 8008 CTS and has the same control lever functionality. However, the hydraulic pump is powered by an electric motor and uses the same proven battery and powertrain technology as existing JCB electric products.

Wetherby Tool & Plant Hire Owner, Scott Fletcher said: “We started buying JCB machines in 2010 as it’s a well-known brand and we’ve stuck with them ever since. We bought the JCB 8008E CTS after receiving a number of enquiries from customers about electric diggers for working inside buildings. We’ve been very impressed with the new model. 

“Our local dealer, TCH Harrison in Sheffield treat us very well. With JCB you get the whole package, the service is very good and they’re great to deal with so it’s not just the products but everything that goes along it.”

The brand new JCB 8008E CTS boasts a 9.9kWh battery, tubular boom with top-mounted ram and internal hose routing, extending undercarriage for access and stability, 10V and 230V charging capability to suit construction use and its sub-1.0 tonne operating weight makes it easy to transport behind a van or pick-up.

Wetherby Tool & Plant hire was founded in 2010 and operates across three depots in Wetherby, Harrogate and Leeds. It runs a fleet of over 70 pieces of JCB machinery from Dumpsters, 1T and 3T dumpers and micro excavators to 16C-1, 18Z-1, 25Z-1, telehandlers and compaction rollers.

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NI Water Launches Silent Valley Schools Christmas Colouring Competition

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Local pupils are being invited to get creative this festive season with the launch of NI Water’s Silent Valley colouring competition.

Running from Monday 1st to Sunday 14th December 2025, the annual contest invites primary school children to showcase their artistic flair by colouring in scenes inspired by the magic of Christmas and the natural beauty of Silent Valley. The NI Water judging panel will go on to select the standout entries that demonstrate imagination and enthusiasm, and the winners will each receive a complimentary NI Water annual family pass to Silent Valley.

Set amid the breath-taking Mourne Mountains, Silent Valley is renowned for its tranquil atmosphere, rich wildlife, and scenic walking trails. It offers an ideal place of solitude during the busy festive season with a variety of amenities, including picnic areas, a visitor centre, and interactive educational displays, making it a favourite destination for families and school groups alike.

Anna Killen, NI Water Education Officer, said: “Our Silent Valley Christmas colouring competition is always very popular and we’re very much looking forward to receiving lots of creative entries from talented local budding artists. The aim of the competition is to inspire children to learn and celebrate how vital safe, clean, drinking water is for prosperity and health, all year round.

“Silent Valley is a stunning site open for visitors to explore and enjoy all year round, while also operating as a key strategic reservoir providing drinking water for a large part of County Down and the Greater Belfast area. We have no doubt it will offer great inspiration to the next generation to creatively show the value the of our most precious of assets: water.”

To download a copy of the NI Water Silent Valley colouring competition go to https://www.niwater.com/media/g5gf4i0z/silent-valley-colouring-competition.png

Further information about Silent Valley Mountain Park is also available online via www.niwater.com/education-and-the-community/silent-valley

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Get the fluted look with Abode’s new Ornate kitchen tap collection

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Fluted design elements are one of today’s most sought‑after trends, having emerged as a style of choice in high end kitchen schemes. Abode, award-winning designer and distributor of market leading kitchen sinks and taps, boiling water taps, bathroom taps and showering solutions bring this look to life with the launch of Ornate, a new addition to its growing portfolio of British-designed kitchen taps.  

The new Ornate tap collection presents a signature range of monobloc mixer taps, which are designed with solid brass, fluted dual lever handles and a regency-style spout. Responding to the growing demand for fluted interior design, which increased by over 200% in 2025, Ornate suits both modern and traditional kitchen environments by presenting a neo-classical style, which draws inspiration from the past and present.

Dan Biddle, Product Manager at Abode says, “Offering a fresh way to introduce vertical grooves into the hybrid kitchen space, our new Ornate tap collection is designed to complement our recently introduced Optima Belfast sink, which features a fluted surface on one side and smooth on the other so you can ensure the right look in your kitchen.”

0-2. Lead image_Abode Ornate Dark Bronze

Bringing understated elegance to fluted home interiors, the new Ornate collection is available in a range of exclusive finishes including new dark bronze, a warm metallic that moves away from the brighter, more yellow tones of brass to present a darker, reddish-brown finish option with ultra-matt surface texture. Dark bronze also joins polished nickel, another new addition to the Abode finish library, which is exclusively available for the new Ornate collection to provide a richer alternative to contemporary chrome.

Ornate features ceramic disc technology to offer superior durability with easy operation using the dedicated dual flow lever handles, which keep the hot and cold water supply separate while introducing beautifully decorative, fluted detailing. Ideally suited for anyone using a gravity fed or lower pressure water system, Ornate can operate on as little as 0.3 Bar water pressure. Made from solid brass, Ornate offers smooth quarter turn handle action, and anti-splash technology, which prevents water spray, reduces water consumption, and saves energy to ensure a quality kitchen tap with lasting quality and performance.

The Ornate tap collection is also available in antique brass and brushed nickel, and over time, dark bronze and polished nickel will be extended throughout the entire portfolio of kitchen taps and accessories by Abode. For now, you can pair your choice of Ornate mixer tap alongside a traditional-style Fenton handspray and matching Fenton soap dispensers to create a truly coordinated kitchen, which enhances the functionality of the sink and prep area.

The Fenton accessory range by Abode is available in dark bronze, polished nickel, chrome, brushed nickel or antique brass, with each handspray designed with an ergonomic push button control function and single spray pattern to make light work of cooking, cleaning and filling large pots. Complementary by design, Fenton soap dispensers provide the final finishing touch to deliver convenient handwashing and minimise the risk of cross-contamination at the kitchen sink.

Prices for the Ornate tap collection start from £279 (polished nickel) up to £399 (dark bronze). Complete the look and pair the Ornate tap with a Fenton handspray from £169, Fenton soap dispenser from £99, and an Optima fluted Belfast sink in either white granite, grey metallic, black metallic or taupe granite (£499).

For further information, please contact Abode:

t 01226 283 434 | e info@abodedesigns.co.uk | w www.abodedesigns.co.uk

Connect with Abode on Pinterest, Facebook, Twitter and LinkedIn #WaterTheWayYouWantIt

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Northern Ireland construction industry poised for recovery after challenging 2025, forecasts CIS

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Northern Ireland’s construction industry is poised for recovery after a difficult 2025, with project starts predicted to grow by 10% in 2027, according to the latest Construction Industry Forecast from CIS, powered by Hubexo.

The forecast reveals that construction starts are projected to have declined by 17% in 2025 due to geopolitical uncertainty and economic headwinds. However, activity is expected to begin recovering in 2026 with 2% growth, accelerating to 10% in 2027.

Dave Thompson, VP for UK and Ireland at CIS, powered by Hubexo, says: “While 2025 has been a challenging year for Northern Ireland’s construction sector, the fundamentals for recovery are in place. Strategic government investment in infrastructure, education and healthcare, combined with improving economic conditions, will drive renewed growth from 2026 onwards. Firms that position themselves now to capture opportunities in emerging sectors will be best placed to benefit from this recovery.”

Private housing shows resilience

Private housing construction is forecast to grow by 39% in 2026 and a further 18% in 2027, following a modest 3% increase this year. The sector faced significant challenges in 2025, including political uncertainty, affordability issues and water infrastructure constraints, which dampened planning approvals and construction activity.

Social housing, meanwhile, experienced a sharp 54% decline in starts in 2025, though modest recovery is anticipated with 2% growth in 2026 and 8% in 2027.

Office sector defies wider market trends

The office sector has emerged as a bright spot in 2025, with project starts growing by 42% as demand for high-quality commercial spaces continues. New hybrid working policies are bringing people back to the office on a more consistent basis, driving demand for Grade A facilities. Growth is expected to continue at 18% in 2026, though starts are forecast to decline by 14% in 2027 as the development pipeline moderates.

Hotel and leisure sector sees surge

The hospitality sector has performed strongly, with the Northern Ireland Hotels Federation’s Hotels 2025 report highlighting continued growth driven by new investment and projected rises in visitor numbers. Hotel and leisure project starts surged by 174% in 2024, with growth remaining robust at 56% in 2025. A 47% decline is projected for 2026 following reduced approvals, though a rebound of 11% is anticipated in 2027.

Public sector investment supports long-term outlook

Budget allocations are supporting the longer-term outlook across key sectors. The Northern Ireland budget allocated £270 million in capital funding for education and £933 million for infrastructure, focusing on roads, public transport and energy projects.

Education sector starts are estimated to have declined by 30% in 2025 and are predicted to drop to 11% in 2026, before recovering with 2% growth in 2027. Health sector starts are forecast to fall 13% in 2025 and 28% in 2026, though a 10% recovery is projected for 2027 as budget allocations take effect.

Civil engineering starts are expected to decline by 21% in 2025 with a further 6% decline in 2026, before recovering with 24% growth in 2027.

Industrial and retail sectors face headwinds

The industrial sector has experienced a challenging period, with construction starts estimated to decline by 57% in 2025 and a further 15% in 2026, due to geopolitical uncertainty and cost pressures. The sector is expected to recover slightly in 2027 with 3% growth.

Retail construction starts are forecast to decline by 17% in 2025 and a further 19% in 2026 despite a 10% increase in retail planning approvals and 4.7% growth in retail output during Q2 2025. Recovery is expected in 2027 with a 10% increase in projects starting on site.

Community and amenity sector shows strong growth

The community and amenity sector has performed strongly, with project starts growing by 101% in 2025. Growth is expected to continue at 70% in 2026, before moderating with a 9% decline in 2027.

Expert insights

The full findings and many more sector-by-sector breakdowns are available in the new Construction Industry Forecast 2025–2027 from CIS. Packed with expert insights, the report delivers tailored, data-driven intelligence to help construction industry professionals in Northern Ireland grow their business, mitigate risk and make well-informed strategic decisions.

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