A bleak picture has been painted of the island’s construction industry in a new report.

Construction Isle of Man (CIoM), the umbrella group that represents the sector, has released its latest findings on the state of the industry. It reveals a significant and worrying slowdown impacting companies across the construction sector.

The report comes just a short while after it was revealed a high-court petition for the winding up of Haven Homes will be heard on January 15 which is opposed by the company.

The dispute centres around The Meadows development in Castletown where work stopped for some time last year and a number of homes remain unfinished.

The report, based on comprehensive feedback and data gathered in late 2024, warns it could have a major impact on the island’s economy if immediate action is not taken.

It says: ‘2024 has been another challenging year and throughout that time, CIoM has continued to receive information and comments from the industry that the slowdown is established and is damaging for not only the whole industry but also for long-established companies, some of which are now downsizing or closing down.’

In November 2024, CIoM sought detailed input from contractors, supply-chain partners, and consultants to understand the scope of the issue better.

The findings paint a stark picture with the slowdown risking large-scale projects relying more and more with off-island consultants and contractors.

CIoM warns such a shift could lead to a loss of local expertise, a decline in the competitiveness of Manx construction businesses and the outflow of profits that would otherwise contribute to the island’s economy.

Dandara housing project Reayrt Mie under construction in Ballasalla - (Isle of Man Newspapers)

CIoM chair Gary Proctor said: ‘This piece of work supports the anecdotal evidence that has been coming out of the industry over the last year or so.

‘It has suffered a perfect storm, the foundations of which were laid before Covid and the inflationary pressures that followed, with the changes to the Government procurement procedures, a significant reduction in the public-sector capital programme and the time taken to achieve planning approvals.

‘If the island wants a functioning construction industry beyond the trades servicing the domestic residential market, it is essential that lessons are learned and recommendations made in the report are actioned now, particularly if the industry is to be in position to deliver against the potential private sector and public capital projects that may come to the market.’

He said at the time: ‘The construction sector is an important part of the economy, employing more than 3,000 people. But it has gone through a period of high inflation which has driven up costs

‘In recent months the department has become aware of concerns in a slowdown in the sector with a large number of businesses identifying a slowdown in projects both large and small.

‘The government’s own capital programme is also behind forecast and a number of local authorities are also slower at progressing their plans.’

CIoM is urging collaboration between industry stakeholders and policymakers to address the challenges outlined in the report.

Immediate steps are needed to support local businesses, protect jobs, and ensure the Isle of Man maintains a robust and self-reliant construction industry.

The full report is available for review on CIOM’s website, along with recommendations for mitigating the risks to the sector and sustaining the industry for future generations.