In the latest Cork Chamber Economic Trends Survey, Cork Chamber asked members about their experience in the most recent business quarter, Q3 2021 (July, August, September) as well as the business outlook for the remainder of the year, the fourth quarter of 2021. This Economic Trends captures a snapshot of business experiences and the overall operating landscape, in a period which saw a business transition back to the office and an easing of Covid 19 restrictions.
PRIORITIES AND ADVOCACY
Good connectivity to and from Cork is critical for business. Cork Chamber asked members a number of questions about air and rail travel for business. Specifically, when members anticipate a return to flying for business again. Just over one fifth of businesses returned to air travel in Q3 2021. However, there is expected to be an uptick in travel from Q1 2022.
The top three most critical routes for business
A significant decrease on 2019 levels of air travel is anticipated in 2022. For example, 64% of business expect levels of air travel under 40% of 2019 levels.
Rail travel for business
When asked what level of rail travel for business is anticipated in 2022, 64% of respondents also expect levels of rail travel to be under 40% of 2019 levels. 85% of respondents support a Dublin to Cork train earlier than 7.00am to facilitate stops enroute and commuter travel to work. Additional member commentary called for a reinstatement of a 6.15am train and also express trains from Dublin to Cork.
Whilst we are reviewing our travel policy and sustainability, some international travel remains essential; it is impossible to be a leading city in Europe and have such poor connectivity to Europe – Berlin? Fiona Clark, Cork Film Festival
BUSINESS CONFIDENCE
With 91% of respondents reporting business confidence, this is a 1% increase on the previous quarter (Q2 2021) which noted 90% of respondents indicating confi dence. This is an encouraging trend, in comparison to 68% confidence 12 months ago in Q3 of 2020.
Q3 % TURNOVER AND NET PROFIT
The latest survey shows that close to half of survey respondents experienced a turnover increase in Q3 2021. 62% of respondents anticipate an increase in turnover in the fourth quarter of 2021.
The cost of electricity will have a huge impact on our trade. We are a cold storage business, and the costs are increasing by 100% at the moment and we cannot secure a contract forward for energy, the market is so volatile. Deirdre Tingle, Colso
EMPLOYMENT DATA
In Q2 2021 we reported 54% of respondents expecting an increase to employee numbers over the 12 months ahead. In Q3 2021, the slight rise to a 56% expectation aligns with current reopening and expectation of the Christmas season ahead.
Of the 61% indicating vacancies, 42% are reporting difficulty filling the open roles (i.e., remaining unfilled for greater than 3 months since initial advertisement). These vacancies vary widely across multiple sectors including, healthcare assistants, regulatory affairs professionals, HGV drivers, accountants, general operatives, software and hardware engineering etc.
CONFIDENCE IN THE IRISH ECONOMY
The latest findings show an increase in confidence levels in the Irish economy at 75%, up from 73% in the previous quarter, and 52% in the Q1 2021.
TOP 3 THREATS TO BUSINESS GROWTH
