InterTradeIreland’s All-Island Business Monitor reveals that the majority of businesses (55 per cent) across the island are maintaining a stable footing. While there are still signs of growth from 32 per cent of businesses, investment aspirations are muted.
According to the latest survey -the largest of its kind across the island- businesses are prioritising stability over significant expansion.
When asked about their plans for 2025, only a small percentage of firms (5 per cent) are considering major investments in new markets or capital, while nearly half (49 per cent) are focused primarily on maintaining their current position.
Martin Robinson, InterTradeIreland’s Director of Strategy, explains:
It seems that external pressures are forcing most businesses to play it safe and adopt a ‘steady as she goes’ approach rather than plan for growth. Currently there are elevated external challenges with local and global trade policy uncertainty and lingering geopolitical tensions which may be curbing the appetite for investment. We see that rising overheads and energy costs remain the top internal concerns for firms on the island- each impacting more than half of businesses, driven in large part by global factors.
Martin Robinson, InterTradeIreland’s Director of Strategy
Other persistent challenges include recruitment difficulties, with 40 per cent of those who’ve tried to recruit in the last two years struggling to find staff.
Businesses are also reporting cash flow issues (18 per cent) and reduced demand (17 per cent). However, while most businesses have maintained staffing levels, there is a slight uptick in hiring expectations, particularly among larger firms. This could signal some recruitment optimism despite the difficulties.
Further bright spots across indicators of economic demand include profitability and sales expectations. Two-thirds of firms are reporting profit, while sales expectations are at their highest since pre-Covid, with 44 per cent of firms anticipating sales growth over the next 6 months.
Peter Burke, Minister for Enterprise, welcomed the findings, saying:
I am pleased to see that profitability remains strong and that businesses are optimistic about sales. The Programme for Government is focused on supporting our enterprise base and contains a number of ambitious measures to drive economic growth and innovation. In the Department of Enterprise, one of a number of steps we are taking is the launch of a new Small Business Unit, to be established in the coming weeks to ensure the delivery of targeted support for small businesses and employers. Small businesses continue to be the backbone of our local and national economy and a key component of the wider sector.
Peter Burke, Minister for Enterprise
For most businesses, post-Brexit trading disruptions have not made a significant impact. However, for the one in five businesses that are affected some adaptation has been necessary with sixty-eight per cent of these stating they have modified their supply chain, while over half (54 per cent) have had to adjust to more paperwork.
Caoimhe Archibald MLA, Economy Minister says
Growing a globally competitive and sustainable economy is a priority for the Executive’s Programme for Government. My department is committed to working with SMEs to take advantage of the significant opportunities that dual market access presents. Businesses in the north have proved their resilience time and time again. I welcome that the majority of businesses are on a stable footing, and while there are challenges, there are signs of growth. I would encourage businesses who wish to explore their development, to access support from InterTradeIreland’s Trade Hub if they have questions about customs, VAT, supply chains and regulation in the cross-border market.
Caoimhe Archibald MLA, Economy Minister
Looking ahead, Martin Robinson adds:
Our survey shows that those businesses that do have bigger ambitions currently are those who are trading cross-border. It’s important for businesses to continue seeking support to innovate and address skill gaps. While the current environment may seem uncertain, focusing on innovation can drive long-term growth. I would encourage businesses to connect with InterTradeIreland to help them identify new opportunities in the cross-border market, overcome challenges and remain competitive.
