Skills shortages and ageing workforce threaten €24bn transport projects, NTA warns

Ken Foxe

The State’s ability to deliver billions of euros worth of transport infrastructure is being compromised by acute skills shortages, ageing workers, and a building sector dominated by small firms.

A board paper said productivity was still well below Celtic Tiger peaks and that there was poor uptake of modern methods of construction.

The National Transport Authority (NTA) document said delivery of Ireland’s complex transport projects – with more than €24 billion in planned investment over the next five years – was a “significant risk.”

It said: “Without targeted and timely interventions, Ireland’s ability to deliver on its infrastructure ambitions will be constrained by acute skills shortages, capacity bottlenecks, and rising costs.”

The paper said construction productivity was still “20 per cent below pre-crash levels” and one-third lower than international benchmarks.

It said a “boom-bust dynamic” discouraged companies from investing in skills and technology while complex planning processes drove inefficiency.

The NTA briefing said there were persistent gaps in trying to recruit project managers, engineers, and skilled trades workers.

“Employers have responded with salary increases and hiring for potential rather than experience, but these measures alone cannot resolve the structural deficit,” it explained.

It said other countries managed these skills gaps through local training, automation, education programmes, and targeted visa arrangements.

The research detailed how insufficient investment in skills and digital infrastructure would challenge the State’s ability to deliver major transport projects.

It warned: “Without decisive action, the transport construction sector risks failing to attract and retain the skilled workforce needed to meet peak demand.”

The paper said the construction industry faced a “reputation challenge” because of “outdated perceptions of working conditions.”

It said there was a risk the next generation of talent would be lost to other industries and that employment permit ineligibility for certain key transport construction roles “compounds labour shortages.”

The NTA research added that even when an employment permit was available, salary thresholds set by the Department of Enterprise were a significant barrier.

“These thresholds … often exceed industry-standard pay rates,” it said.

The paper recommended publishing a central project pipeline for transport to allow companies to invest and plan their workforce long-term.

A follow-on presentation said the State needed to focus on ‘quick wins,’ promoting longer contracts and learning lessons from the UK and elsewhere.

It said a marketing campaign could be developed to attract school-leavers while creating new education and career pathways.

The presentation concluded: “By acting decisively now, the NTA can mitigate the critical risk of failing to build and maintain delivery capacity and capability, ensuring that infrastructure investment delivers not only physical assets but also enduring social and economic benefits.”

Asked about the records, a spokesperson for the NTA said they had nothing further to add to the contents.