'˜Recruiting issues, tough trading, sluggish growth'

Business growth in the province remains subdued despite a modest improvement in performance for Quarter 2, and is being damaged by the ongoing lack of devolved government.
By The Newsroom
Published 1st Aug 2018, 21:35 BST
Updated 31st Aug 2018, 17:08 BST
Chamber CEO Ann McGregor with Brian Murphy, managing partner at BDO, and Maureen OReilly economist for the Quarterly surveyChamber CEO Ann McGregor with Brian Murphy, managing partner at BDO, and Maureen OReilly economist for the Quarterly survey
Chamber CEO Ann McGregor with Brian Murphy, managing partner at BDO, and Maureen OReilly economist for the Quarterly survey

The claim comes in the latest Quarterly Economic Survey published by the Northern Ireland Chamber of Commerce and business advisers BDO.

More than half of those polled (55%) said their main concern in trying to grow their business centred on how Northern Ireland is governed with many believing the Stormont impasse is now damaging the local economy.

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There is also concern about the outcome of Brexit with 53% saying it would affect growth plans while competition remains a worry for 44% of businesses.

The biggest concern for businesses continues to be the difficulties they face when trying to access skills, with 3 in 4 of those trying to recruit finding it difficult to attract the right staff. Almost 70% of manufacturers are finding it difficult to recruit skilled manual workers.

“This quarter’s survey shows that Northern Ireland’s economy faces sluggish growth, with much more needing to be done to put the local economy on a surer footing,” said Chamber CEO Ann McGregor.

“There is no doubt that business confidence would rise if we had an Executive restored immediately to focus on the fundamentals for business – such as improving infrastructure, incentivising investment and addressing the skills shortage.

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“Big, bold action is needed with major new incentives for business investment, confidence-boosting infrastructure projects, and a concerted effort to slash the up-front cost of doing business, which is putting consumer-facing businesses especially under intense pressure.

“The availability of skilled staff remains the biggest issue that businesses face. Access to people and skills is a top priority for employers and firms are doing everything they can to recruit, retain and up-skill their workforce.”

Brian Murphy, Managing Partner at BDO, said “Manufacturing businesses have performed better in the second quarter of the year, exceeding the expectations of many. This is to be welcomed as a sign of the strength, determination and resilience of the private sector in Northern Ireland.

Related topics:Northern Ireland