A new report from Dublin Chamber has found that energy remains a top consideration for Dublin businesses, with 78% of firms expressing concern for the potential of power outages over the winter months. Reduced productivity, a loss of sales and reputational damage have been voted as the most commonly feared consequences if this were to happen.
A number of Dublin firms have stated that power outages would mean a “total inability to function” and for some, “increased carbon emissions due to dependence on generators”. When Dublin businesses were asked whether they could reduce their energy usage between peak hours (5–7pm) to lessen pressure on the grid, 57% said that they could, but as some noted “not without significant investment”.
In addition to these energy concerns, Dublin firms rank affordable housing, skills and labour shortages, and business cost and competitiveness as the most difficult challenges currently facing their business. Housing, and the consequent impact on labour supply is the most pressing concern.
While more than half of Dublin businesses (55%) expect revenues to rise in the fourth quarter, expected profit trends signal cause for concern. Dublin Chamber’s Profit Expectations Index stands at (+)1, the lowest figure to appear on the index since 2020. In stark contrast, the Operating Costs Expectations Index stands at (+)94, an increase of 13 points since the second quarter.
The Price Expectations Index continues to stand at the same figure from the second quarter, 2022, (+)60, indicating that the pressure to pass on rising business costs to customers from previous quarters has not waned.
Speaking this week, Dublin Chamber’s Director of Public and International Affairs, Aebhric Mc Gibney said, "As 2022 draws to a close, Dublin firms continue to face challenges that are likely to spill into 2023. Inflation, the energy crisis, affordable housing, skills and labour shortages continue to test the resilience and innovation of Dublin firms, that are still recovering from the impact of Covid-19. Despite these challenges, 2023 will no doubt offer opportunities for businesses to grow and evolve in equal measure."
Source: www.businessworld.ie
