Irish companies reporting stability or growth remain fairly constant at 84% according to the latest quarterly (September - December 2016) InterTradeIreland Business Monitor Report issued today.
Further signs of economic buoyancy are evident in the employment figures reported in the survey, which show a large increase in the number of firms in Ireland reporting an upsurge in employment levels (14%) – the highest number in recent years with larger firms experiencing a higher rate of growth at 54%.
Worryingly, 98% of Irish companies have no plan in place to deal with the consequences of Brexit and 51% of businesses in cross-border sales are concerned about currency/exchange rates.
More than a quarter of growing Irish businesses (28%) have indicated they are experiencing difficulties recruiting appropriate skills for their businesses.
However, the greatest challenge facing businesses is rising costs, particularly energy costs. With almost a third of firms reporting that they are running at break-even and 78% already running close to or at capacity, there is a vulnerable tier of the economy that could be exposed to inflationary pressures.
The report shows there is an emerging trend in the number of construction businesses reporting difficulties in recruiting skilled staff. Over a third of companies in the sector (37%) are reporting difficulties recruiting skilled labour with 33% citing a lack of appropriate skills in their current workforce.
The construction sector was hit harder than others during the downturn but is reporting robust signs of resurgence with 82% of firms confirming they are stable or in growth mode. Over 75% of businesses in the sector say they are profitable or very profitable. However, an emerging skills shortage in the construction sector is obviously an obstacle to continued growth.
Commenting on the data, Strategy and Policy Director at InterTradeIreland, Aidan Gough said, "We are seeing a resilient, sustained recovery and notable symmetry in challenges faced by firms both North and South. The number of companies across the island reporting stability or growth in the last quarter has remained fairly constant at 84%; however exporters continue to fare better than non-exporters with 51% experiencing growth compared to 36% respectively."
He added, "There is an emerging trend in the number of construction businesses reporting difficulties in recruiting skilled staff. Over a third of companies in the sector (37%) are reporting difficulties recruiting skilled labour, with 33% citing a lack of appropriate skills in their current workforce."
Source: www.businessworld.ie
