Business uncertainty not just confined to Brexit says agency

Businesses on both sides of the border are feeling pressure” across a range of fronts” the all island agency InterTradeIreland has warned.
By The Newsroom
Published 18th Feb 2019, 05:00 BST
Updated 18th Feb 2019, 10:50 BST
Staffing and rising costs are issues but Brexit is still key says Aiden GoughStaffing and rising costs are issues but Brexit is still key says Aiden Gough
Staffing and rising costs are issues but Brexit is still key says Aiden Gough

As the countdown to Brexit continues, its latest Business Monitor for the final quarter (Q4) of 2018 says Brexit remains chief among the issues but claims that rising costs and cashflow have increased in significance.

Rising costs are a concern for over a third of SMEs (36%) while cash flow is an issue for 32% of firms.

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The report says one in in five firms are struggling to recruit people with appropriate skills. Attracting talent has been a persistent issue for larger companies over the past three quarters and has implications for businesses and for the wider economy in the longer run.

With Brexit dominating both the political and business landscape, many SMEs are operating in an environment of uncertainty. This is particularly true for cross-border traders and has been put into sharp focus by their performance in Q4. Only 37% reported growth in the period of Oct-December 2018, down from 52% a year ago.

Generally, businesses that export tend to be the most resilient and more innovative and adaptable. The cross-border market is now worth £6bn/€7bn. InterTradeIreland will be monitoring the health of cross-border business closely over the coming months.

While Britain and the EU continue to negotiate the terms of a withdrawal agreement uncertainty is having a dampening effect on business investments. Only 14% of firms plan to invest in new plant or equipment and only 4% are considering spending money on R&D or new product development.

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“Business is facing many challenges and a high degree of uncertainty,” said Aidan Gough, InterTradeIreland’s director of strategy and policy.

“While we recognise this makes planning difficult we encourage businesses, particularly cross-border traders to take a deep dive into their supply chains and logistics operations.

“SMEs need to assess if they are ready to deal with the bureaucracy surrounding customs and tariffs and to be aware of the regulations that govern their market and the impact of any changes.

“A good starting point and support in this exercise is the InterTradeIreland’s Brexit Advisory Service which offers bespoke help and assistance for SMEs, including a £/€2,500 Brexit Start to Plan Voucher, which allows individual firms to work with an approved panel of experts to devise a tailored action plan.”

Related topics:InterTradeIrelandBrexitSMEsBritain