Analysis from foreign exchange specialist Fexco Corporate Payments of more than 2,100 transactions made through its services revealed that by the end of May 2018, Irish construction firms had spent 240% more on UK goods and services than they did in the first five months of 2016.

Figures showed that the amount spent in the first five months of 2018 was up 31% on the amount recorded during the same period in 2017.

Although this was less than the 152% rise recorded between 2016 and 2017, it is a clear sign that Irish construction firms are ramping up their import boom.

The analysis also revealed that Irish construction firms were importing more – and more frequently – from the UK, as the number of transactions increased by 22% between 2016 and 2018, while the average transaction size has nearly tripled from €5,729 (approximately £5,077) in the first five months of 2016 to €15,211 (approximately £13,480) in the first five months of 2018.

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David Lamb, head of dealing at Fexco Corporate Payments, said that two years on from the UK’s decision to leave the EU, the construction industry in Britain and Ireland was living a ‘tale of two Brexits’.

“Uncertainty over the impact of Brexit on the UK economy has slammed the brakes on Britain’s construction sector, with output falling sharply in 2018. 

“Meanwhile, in Ireland the boom times continue to roll, with Irish building firms cashing in on sterling’s weakness by snapping up imports from the UK.

“Yet this tactic is likely to be about more than just opportunism. 

“British goods and services are cheaper for Irish builders than they were this time last year – and a bargain compared to their pre-referendum levels – but switching to an import-led procurement strategy is also a way to offset rising cost pressures at home.”

David concluded by saying: “With booming demand and a shortage of skilled workers driving up construction sector wage bills, many Irish builders are trying to insulate themselves from an overheating market by importing more of the materials they need.”