The final economic trends survey of 2020 captures the sentiment of the Cork business community during October, November and December, a time when we moved into Ireland’s second level 5 lockdown, commencing in October and finishing on December 01, while also the final quarter ahead of concluding the EU-UK transition period. In this final survey for 2020, we report on business experiences, the outlook on the first quarter of 2021 and the year ahead, and the overall operating landscape in the context of Brexit and Covid-19. Additionally, the survey explores business resilience and sustainability, and the activities being adopted to address these critical considerations. All response data is tempered by the evolving pandemic public health emergency and associated restrictions initiated as we closed out on Q4, and entered 2021.
LONG-TERM RESILIENCE PLANNING
SUSTAINABILITY IN BUSINESS
It is increasingly important for businesses to explore all aspects of sustainability, and to seek out ways to enhance this across activities and operations. When asked about current actions, the top five areas being focused on currently are:
This was closely followed by identifying and managing risks, while a significant number also highlight this as not being a business priority currently.
The impact on insurance provision was also highlighted here, as due to the terms of the TCA, passporting rights are no longer available to UK insurers to conduct business in the EEA. While also highlighted is Ireland’s positioning now as the only English speaking country in the eurozone.
COST INCREASES DUE TO BREXIT
38% indicate their businesses will be affected by the increased cost of sourcing products/ supplies from the UK post Brexit, customs duties, or VAT charges.
PANDEMIC AND BREXIT SUPPORTS
More information on supply lines of materials and product particularly from UK sources. Michael O’Sullivan Greene, O’Leary & O’Sullivan Developments Limited
Pandemic supports must continue long after March 31st for sectors that need a considerable lead time to recover. Marc Cullen, Cork English College
A grant for businesses to become more sustainable -extend the actual support till end of March 2022. Bastien Peyraud, The Imperial Hotel
Get product moving freely through customs. Delays of 12 days and counting at present with correct paperwork is simply unsustainable. Anonymous
BUSINESS CONFIDENCE
In Q4 2020 we see business confidence has climbed back with 83% of respondents noting confidence, at 68% in the previous quarter.
Q4 TURNOVER AND NET PROFIT
The latest survey shows that 29% of respondents anticipate an increase in turnover in the first quarter of 2021, with 32% expecting turnover to decrease over the same period. In respect of net profits, 26% of respondents expect an increase in Q1.
Housing and Transport to improve quality of life for young people. Jim McGrath, Abbvie Cork
Make the government e-tendering process genuinely accessible to micro-enterprises. Evelyne Legaux, Finance OTC Consulting
EMPLOYMENT DATA
For the same quarter in 2019, 55% of respondents expected an increase to employee numbers over the coming 12 months. Finally, 27% of respondents indicated a reduction in employee numbers in Q4 2020, while 24% noted an increase. For context, 36% of respondents in the same quarter in 2019 indicated an increase to employee numbers, with just 7% indicating a reduction.
CONFIDENCE IN THE IRISH ECONOMY
The survey reports a marked improvement in confidence in the Irish economy with 55% of respondents noting their confidence, up from 29% in the previous quarter. There is also a notable decrease in those reporting as not confident, now at 43%, while at 71% in the previous quarter.
TOP 3 THREATS TO BUSINESS GROWTH
