FUTURE PROOF Construction Information Services (CIS): Clever restructuring and a canny acquisition has seen building services firm CIS bounce back from the economic downturn stronger than ever, writes BARRY O'HALLORAN

TOM MOLONEY believes the Irish building industry is within yelling distance of a turnaround after finally hitting the bottom last year.

Over the past five years, his company – Construction Information Services (CIS) – has not only had a ringside seat at the beating the industry has taken, but has felt the impact itself.

The company supplies information on building projects from pre-planning, through planning and the new-build stage to its customers – largely businesses that supply goods and services to the sector, that mainly use it for sales leads.

Its customers are suppliers of building materials and services of all kinds, embracing everything from architects and surveyors through to finance and recruitment.

Moloney, managing director of the business, says it hit a peak in 2007, when it had more than 3,000 paying subscribers and sales of €2.2 million.

Since then, client numbers have fallen to around 1,300 and turnover has dropped off by 63 per cent. This reflects the severity of the slump endured by builders since 2007. Around €32 billion has been wiped off the sector’s value while an estimated 230,000 jobs have been lost.

As the money dried up, so did the projects. Customers either went out of business or cut back sharply to survive, axing their subscriptions in the process. “It’s been amazing to see over the last four years,” Moloney says.

It meant that CIS itself had to endure its share of pain. At the peak, it employed 24 people; that has been reduced now to 10.

Moloney says the company had invested in new technology, allowing it to react quickly to events.

Last year, CIS decided it was time to regroup and begin pushing forward again. It approached its two main rivals with a view to making an acquisition. After first refusing, one of them, Belfast-based Unearthore, agreed to sell.

That deal was completed last week, bringing an extra 500 clients into the fold, expanding the business in the North and giving it a possible platform to cross the Irish Sea and begin selling in Scotland.

It may have happened at the right time. Only 17 per cent of Unearthore’s customers actually went into liquidation.

“This is where we are starting to see a turnaround,” Moloney says. “They have rationalised and restructured and they are coming back looking to resubscribe.”

The rate of new subscriptions was up 39 per cent in the first quarter of this year. This means that customers are on the trail of new business.

And, in terms of the new projects, the picture is not quite as bleak as it may seem. Moloney points out that the Government has begun work on school buildings worth €1.2 billion and has plans for a further €1.5 billion investment in this area. He says this is a commitment it has so far been very careful to honour.

In Northern Ireland, there is £536 million worth of social housing developments on the way.

There are other projects underway as well, even a few scattered residential developments. And there are signs that plans put on ice when the recession hit could be revived in the foreseeable future.

Over the past few years, CIS has seen a lot of applications for extension of planning permission. Normally, a successful applicant has to begin work within five years or the permission lapses. However, it is open to them to apply for an extension of the deadline, and this has been happening, Moloney says, estimating that there are more than 8,000 projects currently on hold.

Through a partnership with a British company, Barbour ABI, CIS last year sold €150,000 worth of Irish data to Britain. The company is also looking to expand its business in another direction, by providing a guide to building supplies through a separate website.

So, if someone is looking for door handles – there are hundreds of different kinds apparently – or insulation, they can go to the website to see what’s available.

Advertisers would pay to be listed on the site, and could provide links back to their own web addresses.

“Nobody looks up a telephone book any more when they are looking for something; they go on to Google,” he says.

Overall, Moloney argues that the industry is starting to show signs of life again. “We believe that things are moving forward,” he says. However, the nature of the business means that it will take time to gather momentum, he believes it could be after the end of 2013 before we see evidence of that.

“When 2012 came, we decided now is the time to move. As far as we are concerned, we had reached the bottom and it was time to innovate and push forward,” he says.