The third economic trends survey of 2020 captured the sentiment of the Cork business community as we transitioned from the initial shock waves of the Covid-19 pandemic to a considerably altered business operating landscape across the region and country. In our latest economic trends we report on business experiences during July, August and September, and the outlook for the fourth and final quarter of 2020. We also report on the changes made to work practices as a result of Covid-19, the return to offices, and connectivity across the county to fibre broadband.
CHANGES TO BUSINESS PRACTICE AND OPERATIONAL FACTORS
The Covid-19 pandemic has initiated dramatic changes to how we work, with 21% of responding businesses reporting >90% of employees are now working from home. When asked on the expected return date to the office, and taking account that survey responses were gathered over the last two weeks of September and before the current public health guidance advise, 19% reported that employees were at that stage returning to the office with more returning in the coming 2-3 months, however 18% expected this return from January 2021 onwards. A further 3% of businesses at that time had also reported that they were not planning to return, instead closing their physical office.
While increasingly difficult to gauge the return to offices currently, we can be certain that the pandemic has accelerated changes to way we work as we report that 48% of businesses were initiating changes to work practices and organisational policy to formalise a Work From Home offering for employees on an ongoing basis.
We have to make sure that as we work our way through the issues created by COVID19 that we have an economy and infrastructure to be able to drive Cork and Ireland forward into the future. We can’t allow Cork to fall back 20 years in development. David Brosnan, Clearstream Global Securities Services Ltd.
All efforts to be employed to ensure maximum connectivity to Cork from the principal international economic hubs. Frankie Whelehan, The Montenotte Hotel
BUSINESS CONFIDENCE
The latest survey reports a downturn in the percentage of businesses reporting confidence to 68%, from 73% in Q2 2020.
Q3 TURNOVER AND NET PROFIT
For the coming fourth and final quarter of 2020, 23% of businesses anticipated an increase in turnover with 42% noting anticipating a decrease, while 22% are expecting an increase to net profit. Importantly, while sentiment was captured just recently as we closed out on Q3, the operating landscape continues to evolve rapidly since then.
EMPLOYMENT DATA
CONFIDENCE IN THE IRISH ECONOMY
In Q3 there is a significant increase in businesses reporting as not confident in the Irish economy to 71%, from 52% in Q2.
TOP 3 THREATS TO BUSINESS GROWTH
