ITI All-Island Business Monitor
21st November 2024
InterTradeIreland’s latest All-Island Business Monitor paints a broadly positive picture with three in ten (37%) of businesses saying that they are growing, half (53%) are stable, and six in ten (60%) reporting that they are profitable.
Challenges around costs and access to people and skills persist. This quarter also sees issues such as cash flow and demand starting to increase. This is contributing to an overall sense of uncertainty and potentially dampening the appetite for investment.
The findings of the survey, which takes the temperature of 750 SME owner/managers across the island, shows that sales performance, which is the nuts and bolts of doing business, remains positive across the wider business economy.
Three in ten (30%) businesses reported increased sales and over a third of all firms surveyed are expecting sales to grow over the next six months.
The largest challenges for businesses remain the high costs of energy and other overheads which have their roots in wider economic and geopolitical issues.
InterTradeIreland’s Director of Strategy Martin Robinson said: “There are also certain concerns that are coming into sharper focus in the third quarter. While these are not yet causing sleepless nights for business owners, they have increased in importance. Emerging issues reported include business and consumer confidence, cash flow, access to finance and demand for goods and services. Together, these could subdue investment intentions.”
When asked about investment, seven in ten businesses said they had no plans to increase employee numbers, upgrade new plant or equipment or invest in IT over the next 12 months.
One in four SMEs reported that the biggest barrier to growth is actually finding the time to focus on it. The survey also shows that access to skills is a real pinch point for firms. Businesses are indicating that not having enough people is putting them and their existing staff under pressure. Both these factors combined mean that there’s limited room for business owners to think strategically about their growth plans.
Martin commented: “Increasingly, we would encourage firms to seek support from agencies across the island, including InterTradeIreland that can work with them to embrace innovation to plug skills gaps and improve productivity. It may take time up front, but in the longer run it will accelerate your business growth.”
Business Consultant Denise Murphy who works with companies in Co Mayo and often directs them to InterTradeIreland for assistance said: “These findings don’t surprise me.
Many of the business managers that I work with are very time poor and are looking for practical solutions to solve challenges around productivity or smarter ways to bring more people into the business that can focus on sales.”
The survey also asked businesses how they have adapted to the trading conditions post-Brexit. Encouragingly, there are signs of improving knowledge of the Windsor Framework and its requirements for businesses.
In September’s All-Island Business Monitor, almost half (49%) of those surveyed said they remain impacted by the UK’s exit from the EU and said they had no knowledge about the requirements of the Windsor Framework. This percentage has now dropped to just over a third. Businesses in the construction sector across the island are most likely to say they have some level of knowledge of requirements.
