Province less prepared for economic recovery
NORTHERN Ireland trails most international countries in its preparation for an economic upturn which could have a negative impact on its future international competitiveness, a business report has warned.
The survey published today by business advisors, Grant Thornton, polled more than 7,400 private businesses in 36 countries including Northern Ireland, and indicates how far behind the Province remains in some areas despite recent efforts.
Local companies, for example, are ranked lowest internationally when it comes to embracing research and development (R&D) with Northern Ireland receiving a score of minus two per cent. That is in stark contrast to the Irish Republic which ranks sixteenth globally, 21 places ahead.
In terms of focus on initiatives to harness growth opportunities such as developing new products and services, the Republic is again ahead as a total of 66 per cent of private businesses indicated that they are likely to adopt that as their key strategy compared to only 33 per cent of businesses in Northern Ireland.
"For many businesses in Northern Ireland the last two years have been about managing their cost base in light of a reduction in activity,” said Charlie Kerlin, Head of Corporate Finance at Grant Thornton in Belfast.
“If the expectation of a global recovery is correct, 2010 will be about taking advantage of the upturn. The findings of this report provide a snapshot of how well Northern Ireland businesses are currently performing globally in adopting strategies to position them favourably during more positive economic conditions.”
Judging by the results, he said local businesses needed to raise their game significantly.
“There are lessons to be learned from other countries’ approaches to rebuild after the recession if Northern Ireland is to improve its international competitiveness in the longer term. The good news is that there is assistance for local businesses wishing to invest in R&D through tax relief and credits and support through Government agencies such as InvestNI. ”
On a more positive note Northern Ireland is shown to be ranked 22nd globally ahead of Spain, Canada and Germany in identifying new target markets with 46 per cent of businesses pursuing this as a strategy during 2010. Although the Republic of Ireland is ranked number one globally in adopting this approach.
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Thursday 24 May 2012
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