Output in the Irish construction sector is 25pc behind the average in the euro area, mainly because there are so few big house-building firms operating in the country.
The country’s 175,000 construction workers are employed mainly in small firms, and the industry's fragmented structure is hampering efficiency, according to Robert Kelly, director of economics at the Central Bank of Ireland.
“Given that the construction sector is operating at near full capacity with a constrained labour supply, improving productivity is crucial,” he told the Joint Oireachtas Committee on Housing today.
