Discovering the future of the financial industry in Galway.
Discovering the future of the financial industry in Galway
Ireland is a renowned exporter of financial services across Europe. Over 50% of the World’s top-ranking banks are located in Dublin. Ireland generates over 2.1 billion euros as taxes that is conveyed from the exchequer. There has been a survey indicating that over 64% of accountancy and finance professionals are changing their jobs. Recently, most of the financial institutions have been restructuring to adapt to changes in the market as well as generate high-value and enhanced service-based employment. However, there are other industries contributing to the transformation of the financial sector in Ireland. These industries include the manufacturing and the real estate industry, although the latter has more impact.
What is the situation of the construction industry?
The construction industry is a globally growing sector, with most of the nation experiencing a boom in real estate development. The heightened development of properties and land attract intensive investment. Investors are taking money from financial institutions and investing in real estate for future returns. In 2019, the Irish construction industry grew by 5.8 per cent (The Irish Times, 2018). This was due to the presence of a partnership between private and public industries that triggered an enhanced growth. However, the Central Statistics Office (CSO) has been focusing on recommending ways in which organizations can be able to adapt to a changing environment (The Irish Times, 2018). It was apparent that the construction industry was highly affected, with certain cities in the nation will be significantly affected.
The role of Galway in Ireland
Galway has been Ireland’s harbour. Recently, there has been a wide range of contracting with the Engineering industry attracting international markets to the Harbour. As a result, there is an enhanced business in the City. Hosting over 79.934 inhabitants, the businesses in the region have been focused on the establishment of boutiques, art galleries and retail business. In comparison to other cities such as Cork and Belfast, the city has been a beehive of activities directing its business to the export and import business for the country. Thus, Galway plays a key role in shaping Ireland’s international business.
What does the future have to offer? However, the future for the construction and the finance sector still remains bleak. This is owing to global business trends that have seen the fluctuations affecting almost every business across the World (BusinessWire, 2020). In addition, the issue of globalization and the adoption of advanced technology has a great impact on the financial sector in the region. Most of the institutions are adopting the use of online money and the resulting trend is that lack of credible resources for borrowing collateral. Almost 70 per cent of the construction firms depend highly on the provision of finances from the banks. However, only 34 per cent of the total construction companies in Ireland got a positive response to funding from financial institutions (Linesight-Future trends, 2020).
Our conclusion However, this is likely to change in the future. The targeted return on investment cannot be attained within the changing attributes market environment. Most of the institutions may only end up developing property and not being able to get the returns within the expected period of time. The financial regulator is also cautioning how financial service providers are addressing funds needed to finance construction. Nevertheless, the rise in Fintech within the City is likely to attract international investment in the construction industry.
BusinessWire. (2020, September 15). Construction in Ireland - Key trends and opportunities to 2024 post-COVID-19 - ResearchAndMarkets.com. https://www.businesswire.com/news/home/20200915005899/en/Construction-in-Ireland---Key-Trends-and-Opportunities-to-2024-Post-Covid-19---ResearchAndMarkets.com
The Irish Times. (2018, October 4). Financial services sector needs to amplify its voice. https://www.irishtimes.com/sponsored/pwc/financial-services-sector-needs-to-amplify-its-voice-1.3647883
Linesight-Future trends. (2020, August 7). Linesight – Future trends | | Irish building Magazine.ie | Ireland's leading construction news & information Portal. Irish building magazine. https://www.irishbuildingmagazine.ie/2020/08/07/linesight-future-trends/