Companies across the island of Ireland have started the year on a solid footing and are optimistic about the future.
Those are the main findings of a survey carried out by cross-border agency InterTradeIreland which reported that the number of firms which classed their business as stable was at a four-year high in the first quarter of the year.
Around 55% of businesses surveyed both in Northern Ireland and the Republic said they were stable while 36% reported growth. Encouragingly, a third of those surveyed are optimistic about an increase in sales in the next six months.
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While the headline picture appears positive, there appears to be mixed fortunes. The number of larger firms experiencing rapid or moderate growth is three times higher than for smaller firms.
Meanwhile, inflationary pressures continue to be a challenge for many businesses, the survey said, although the impact appears to be lessening, particularly for energy prices. That said, input cost prices aren’t expected to fall significantly in the next year. Surprisingly, few companies have put measures in place to mitigate rising prices.
‘’While two in three businesses have passed on price increases, this strategy is not sustainable in the long-term,” Martin Robinson, InterTradeIreland’s Director of Strategy, said. “It is concerning that half of firms report that they have not yet tried to put sufficient measures in place to combat costs or resolve skills issues. Firms need to adopt digitalisation and sustainability practices that enable them to reduce costs and their reliance on skills in what is currently a constrained labour market.”
Companies also reported a continued challenge finding the right talent. Larger firms are particularly hard hit with half reporting difficulty in sourcing the right skills.
Mr Robinson said companies should consider exporting across the border.
‘’We know that businesses that export enjoy higher rates of growth and profitability, yet only 1 in 5 firms surveyed are selling across the border. The cross-border market is a natural first step particularly for small firms to begin their export journey. I would encourage businesses to take advantage of the wide range of trade information, advice and practical support that InterTradeIreland provides to help grow cross-border exports.’’