The latest quarterly InterTradeIreland Business Monitor Report paints a picture of a buoyant economy with 39 per cent of businesses in growth mode and a further 57 per cent in a stable position. 

However, 95 per cent of businesses say they still do not have a plan in place for Brexit. The report has found that companies trading cross-border are faring particularly well, with 50 per cent enjoying growth. Growth is not however translating into a similar upsurge in employment with only seven percent of companies reporting that employment levels have increased. The telephone survey of 750 business was conducted on an all island basis between September 19, 2017 and October 10, 2017.

“The fact that only 95 per cent of businesses are still not actually planning for Brexit remains a real concern particularly as 22 per cent overall and 41 per cent of cross border traders say it will have a negative impact on their business,” said Aidan Gough, Strategy and Policy Director at InterTradeIreland.

The survey also found that 96 per cent of businesses across the island are stable or growing; half of cross-border traders are experiencing growth compared to 36 per cent of traders only doing business in own jurisdiction.

InterTradeIreland note that the reluctance to take on new staff against the positive market background chimes with the findings that despite sectoral differences, 89 per cent of businesses overall are close to or at full capacity.
“While this may signal a welcome improvement in productivity performance it may also reflect an increasing number of businesses reporting difficulties in recruiting appropriate skills,” said Mr. Geough.
“Cost increases in overheads and through the supply chain are also major challenges that firms are facing,” he continued.

Mr. Gough believes that “a buoyant economy should not distract from the need to confront and prepare for challenges that lie ahead especially in terms of dealing with rising costs, skills shortages and potential changes to trading relationships.
“Our latest Business Monitor shows that over 70 percent of businesses are operating on very tight margins (below 10 per cent) and therefore carry a high exposure to rising costs.” The cross-border body is advising businesses to not only “concentrate on the day job and operational effectiveness”, but also “to use this time strategically to look at the possible impacts of Brexit.”

Mr. Geough concluded: “By asking relevant questions and working through different scenarios, businesses who have proved resilient in the past, will discover new solutions and opportunities in the challenges that lie ahead. An online Brexit planning tool which is available on our website will help SMEs begin the process.”
He concluded: “With a healthy ambition to grow reported by 51 per cent of firms across the island, we are encouraging SMEs to plan, act and engage in preparation for Brexit as this is the key to stability and success in the future.”