Business ‘hits the brakes’ as Brexit impacts growth plans

Businesses continue to push for growth but are becoming less confident about the prospects for turnover and profitability in the next year as investment plans falter.
Chris Morrow head of policy at NI Chamber with chief executive Ann McGregor, Maureen OReilly economist for the QES and Brian Murphy managing partner at BDOChris Morrow head of policy at NI Chamber with chief executive Ann McGregor, Maureen OReilly economist for the QES and Brian Murphy managing partner at BDO
Chris Morrow head of policy at NI Chamber with chief executive Ann McGregor, Maureen OReilly economist for the QES and Brian Murphy managing partner at BDO

The bleak analysis comes in the latest Quarterly Economic Survey published on Wednesday by Northern Ireland Chamber of Commerce and Industry and business advisors BDO.

As confusion and tensions around the process increase, the report reveals that around 60% believe that Brexit is already having a negative impact on the ability to attract skilled workers with skills mismatch also a key business concern.

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It also confirms a rise in the number of companies making firm plans to deal with Brexit, with a third of those polled having set up or planning to establish a presence outside the UK.

Around 12% have already changed recruitment plans and 10% have refocused their target markets the QES reports.

Almost half believe they are experiencing a gap in the skills needed to grow their business. This is having a serious impact on the business performance of 20% of businesses affected and some impact on a further 43%.

“The damaging impact of Brexit is becoming increasingly apparent as Northern Ireland businesses face continued uncertainty around its outcome,” said Chamber chief executive Ann McGregor.

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“Our findings should serve as a clear warning that the ongoing impasse at Westminster is contributing to a sharp slowdown in the real economy right across all of the UK regions.

“These are some of the weakest figures we’ve seen in nearly a decade, and that’s no coincidence. Business is certainly hitting the brakes.”

As Brexit erodes much of the post-recession gain in business confidence, she said the Government must ensure that a messy and disorderly exit is avoided and provide firms with certainty on future conditions to prevent further declines.”

“This is also not helped by the ongoing political stalemate at Stormont which is also holding back economic progress – as illustrated in the survey by the recruitment challenges and skills gaps facing firms. Our politicians must urgently find a way of working together on economic and social matters.”

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Brian Murphy, managing partner at BDO, said the reaction from business owners was almost wholly justified.

“But even with the endless barrage of votes and debates and a general lack of political progress, businesses have persevered and performed well.

“Just think what we could achieve if all of our stakeholders were aligned.

“The commitment to invest and recruit is evident within both industries even under difficult circumstances. What these businesses need is support and clarity around the major issues to allow them to develop and be competitive in the domestic and global marketplace.”