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Irish Building*
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Apprentices
and perceptiontop priorities

Headof DesignerGroupMichaelStoneis the CIF'snew President.Hetalks to IrishBuildingMagaiine

about jugglingroles, sector challengesand why we shouldbe proudof our constructionindustry.
new President of the CIF is not short of ideas when
it comes to reviving the industry. Michael Stone was
elected the new President of the Construction Industry
Federation last November and will serve as leader of the CIF
Executive Body for the next two years. Along with acting as
President, Michael is the founder and CEO of an electrical and
mechanical contracting firm, Designer Group, so its fair to
say he doesnfehave much free time at the moment. The first
couple of months as President were hectic but by focusing on
time management, things have improved and I am enjoying
the challenge.
Originally an electrical contracting business, Designer Group
was formed in 1992 by Michael. The firm branched into
the mechanical sector in 2001 and in 2006 established its
operations in the UK. It was tough during the recession in
the UK but now that we are in a growth phase, there is no
shortage of exciting projects available to us. We are on a high
growth curve in the UK and we see huge opportunities for
us, particularly in the London and south east region. The big
challenge we face in the UK is sourcing quality management
to deliver the projects we have secured.
The situation in Ireland is, however, very different. The
market here remains extremely competitive. If we go back to
2007 and take a list of the top 10 building contractors, you
will find now that five of them are no longer trading. In the
mechanical and electrical sector, all bar one are still operating.
We have some very good companies that are our competitors
and there is just not enough work for the players in the market

The
'The first coupleof
monthsas President
were hecticbut by
focusingon time
management,things
have improvedand
I am enjoyingthe
challenge'

at present however, we do feel that with some of the bigger

projects due to come on stream in 2016, the situation will
improve.
Recent key projects delivered by Designer Group include the
new brewery at St Jamess Gate, the Olympic International
Broadcast Centre for the 2012 games in London and the
new Bioscience Facility for Trinity College along with new
corporate Headquarters for Google, Amazon, Yahoo, Dropbox
and Eaton.
Michael is well placed to take up the role of CIF President.
He has served as President of the Electrical Contractors
Association, ECA, and the Mechanical Engineering &
Building Services Contractors Association, MEBSCA and
has participated in most of the Federations sub committees
over the years. I know the challenges facing construction
firms and specialist sub contractors, particularly those who
are reliant on the domestic market and whose turnovers
have shrunk as a result of the severe recession over the last
seven years. Every sector has its own difficulties and thats
why its crucial that work is spread around the country and
not confined to the capital and the larger cities. Government
policy must be directed to bringing work to the regions. The
recent announcement such as the 300 million investment in
Local Authority housing is, says Michael, the sort of news the
industry needs. That type of work keeps smaller contractors
around the country going. The school building programme is
also vital for firms. I think there are huge opportunities with
Irish Water; the requirements they have for the infrastructure

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upgrades with water treatment plants and replacement of of work has been put into the establishment of CIRI,
pipework means regional contractors around the country will the only Register of construction companies, sole
traders and specialist contractors that are vetted by
get an opportunity to win some work.
In relation to the current housing shortage Michael believes Government nominees and industry professionals.
there are a number of factors causing this, the main one being We want construction taken out of the black market
the acute lack of finance for house builders which prevents once and for all. It is not good for our industry, it causes
them from getting working capital together to commence problems with wage levels and competitiveness in the
building on their sites. Michael points out that many of these economy.
housebuilding companies are second and third generation Michael acknowledges how difficult a task it is
operations who have built some fantastic schemes all around to change mindsets and to improve the industrys
the country to the highest standards. A further issue is quite reputation. We know construction in Ireland has
simply that the market has not risen in most places to a level taken a battering but its important to remember the
where it is financially viable for house builders to build new brilliant people working in our industry who have
stock as the price in the market tor second hand units is far delivered such fantastic jobs right around the country.
cheaper than the cost to build new units.
The sector has built world class facilities and that is
A lack of skilled workers to carry out projects as the market what we want to be recognised for. It is so important
picks up will have serious repercussions for the industry, says that we have people who have a desire to work in
Michael. I firmly believe that as an industry, we have a duty our industry and who want to be a part of building
to look at how we are training our people and ask where they these exciting projects for our clients to world class
are going to come from in 10 years time. We need to keep standards. There needs to be a strategic plan put in
our talented and trained people working in Ireland and to do place by Government and stakeholders with a focus
that, we need them working at the front edge of construction on the medium to long term so we can identify a range of
technology. Initiatives such as B1M and lean construction projects that need to be delivered over the next 10 years
are crucial for us and the industry needs to embrace these with a better outlook for the industry which will result in us
technologies at all levels.
being able to attract the bright minds that we need to take the
The GIF is currently pushing Government to implement industry forward.
initiatives that will encourage firms to start hiring graduates According to Michael, there are still some people who see the
and apprentices again but its an issue that needs to be CDF as the body that represents developers, some of whom
approached in a different way, says Michael. We need to delivered poor quality buildings and housing. We need to be
be more flexible when it comes to the type of courses we are seen as the body that represents the construction sector, the
providing. We need to be looking at co-operatives for smaller body whose members build pharmaceutical plants, schools,
companies so that they can share an apprentice or graduate hospitals, company headquarters, roads, bridges, tunnels and
to ensure that he/she can get through their training period. water treatment plants as well as housing and apartments. It
Maybe a small company doesnt have the work to keep that might be slow but Michael sees the industrys perception as
person going for the length of their apprenticeship but if two changing for the better. There is no doubt it is improving but
or three companies get together, they can share the apprentice I do think we need to sell ourselves better. We have been lying
and get them through their training. If the apprentice issue down and taking a beating for too long. Most of our members
isnt addressed we are looking at a potentially massive brain are contractors who work on very low margins, typically
drain, particularly when it comes to the wet trades. Numbers around 3% in a good year. Our members have not made huge
are dangerously low in plastering, bricklaying, painting and amounts of money at the expense of the Government or the
decorating and wall tiling and companies working in these people of Ireland. We have built and delivered projects that
trades suffered during the recession. They need the support of have allowed people to go to work, school, college and receive
the CIF and there needs to be an understanding from Solas that treatment in our hospitals. We should be proud of what we are
these initiatives must happen as soon as possible. Northern achieving.
Ireland and the UK have put in place programmes where the
State takes on apprentices for the first 10 or 11 months to get
them up to a certain level before employers take them on. Tts
forward thinking initiatives and incentives such as these that
are needed to kickstart our industry. If there are no training
programmes in place, firms will simply sub out work which
will, in turn, result in an industry unable to deliver projects inhouse
and when the market does pick up, which it will, well
be forced to recruit people from abroad to deliver our projects
which is a very worrying thought when we have such a young
and bright workforce available to us.
When it comes to the issue of perception in the industry, the
CIF President has strong views.
In order to improve the perception of the construction
industry, standards within the sector must be improved.
Positive initiatives that go some way towards changing this
include the new Building Regulations and the Construction
Industry Register Ireland. The CTF is an advocate of the new
Building Regulations but were also very concerned with any
initiative by Government that would lessen or reduce those
Regulations, particularly when it comes to one off housing.
We feel that exemptions would have a detrimental effect on
the industry and ultimately the customer. A massive amount

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'I firmlybelievethat
as an industry,we
have a duty to lookat
how we are training
our peopleand ask
where they are going
to comefrom in 10
years' time'
(l-r) Paul Stewart Irom JSL
Group,MichaelStone, President
CIFand Hubert Fitzpatrick,
CIF.Picture ConorMcCabe
Photography.