High costs and lack of skills impacting business growth plans
High costs and a lack of skilled workers are impacting the growth plans of many companies, new research shows.
The latest All-Island Business Monitor by InterTradeIreland, which compiles the views of businesses across Ireland and Northern Ireland, paints a broadly positive picture.
Almost 40% of businesses said they are growing, while over half are stable.
Meanwhile, 60% said they are profitable at the moment, while 30% have seen sales increase.
However, the report highlights a number of challenges facing companies – with the high cost of energy and other overheads top of the list.
“There are also certain concerns that are coming into sharper focus in the third quarter,” said Martin Robinson, InterTradeIreland’s Director of Strategy.
“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,” he added.
The report states that all of these challenges combined could impact investment plans.
70% of businesses surveyed 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,” Mr Robinson said.
Mr Robinson encouraged businesses to seek support from agencies across the island, including InterTradeIreland.
“They 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,” he added.
The survey also asked businesses how they’ve 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 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.
Article Source – High costs and lack of skills impacting business growth plans – RTE
