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Tweet of the week
America is still the land of promise

As the result of the US election came through, it was clear to those in the know that shares in US construction companies would be one of the key winners.

The market quickly banked the promises Donald Trump had made to spend trillions on infrastructure if he came to office, and stocks in construction and engineering companies saw significant growth.

However, even before the election, construction spending for the year to date was a mighty $1.15 trillion.         

Irish companies are already winning business in this sector with a variety of products and services such as glazing systems, insulation, electrical systems, HVAC (Heating, Ventilation and Air Conditioning).

Construction technology, including project management software and Building Information Modelling capability, are also growing in demand. For example, software from Initiafy is being used by several large construction firms here.

Linesight (formerly Bruce Shaw), is involved in projects such as the build of Primark stores in over 20 states from their New York and San Francisco offices, and Irish players including Kingspan and Dortek are also gaining traction here.

US construction projects that should appeal to Irish companies include data centres; retail and commercial developments, healthcare, pharma and life sciences facilities.

Companies considering the US market should first do careful research because each of the 50 states offer different opportunities. For instance, construction methods differ hugely from the warm south to the chilly north.

Further, sustainable building methods are seeing real growth across the US, as design and construction firms are under pressure through building codes and regulations to deliver projects that meet green principles. Some state and local governments offer financial incentives, grants and tax exemptions for developments that achieve these standards.

Owners and developers are also becoming more aware of the benefits of green buildings in terms of better environment, comfort and significant cost-saving over the lifetime of a building.

The key challenge, however, is that buyers will ask about reference sites in the US or even in their own state, so securing those first few projects is difficult but essential.

Regulations can be another sticking point. Building and construction codes can vary from state to state; and it is important to note that architects and engineers expect drawings and product details to use imperial measurements.

Naturally, Irish companies will face local competitors but this can pose a problem that goes beyond price.

Construction professionals can be reluctant to use products or services from companies they are not familiar with or those without US reference sites. Therefore, having a local presence in the market is important for building relationships and trust with local buyers.

Marketing materials such as website and brochures should be adapted for the US market and show relevant project examples. Buyers are mostly interested in knowing what projects you have worked on, not only in the US but in their state or city.

A very strong positive for Irish companies is that US construction professionals acknowledge that design and construction standards in Europe can be far more advanced in terms of sustainable practices and innovation.

It is also recognised that Irish companies often deliver competitive lead times, which can be crucial for fast-paced construction environments like New York city.

Furthermore, the strong relationship between Ireland and US is acknowledged with many construction professionals in the US proudly claiming Irish heritage. Just recently, the year of Irish Design initiative hosted two events in the cities of Chicago and New York entitled, ‘We Built this City’, which explored the influence that the Irish have had in shaping the cities’ built environment.

Even today in New York city there are networking groups that bring Irish-American construction professionals together to build and strengthen important business relationships and keep the link with Ireland going.

Recent developments suggest those networks may soon be getting a lot bigger.

Caroline Donnelly is Enterprise Ireland Market Advisor for construction in the USA

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