In the latest Cork Chamber Economic Trends Survey, Cork Chamber asked the business outlook on the second quarter of 2021 and the year ahead, and member thoughts on the most recent business quarter, Q1 2021. This encapsulates a period within which Ireland moved into the third level 5 lockdown. We report on business experiences and the overall operating landscape. We also asked a number of questions on business priorities for the Cork region, and business action areas under the UN Sustainable Development Goals. Also known as the Global Goals, the UN SDGs which were adopted by all United Nations Member States in 2015, set out an international blueprint to achieve a better and more sustainable, resilient future long term and for all.
PRIORITIES AND ADVOCACY
Cork Chamber advocacy is framed by our commitment to champion 5 of the UN Sustainable Development Goals (SDG 5: Gender Equality; SDG 8: Decent Work & Economic Growth; SDG 9: Industry, Innovation & Infrastructure; SDG 11: Sustainable Cities & Communities, and SDG 13: Climate Action). They call on governments, businesses, and individuals to make changes that are proactive and progressive in securing a better future for all. The Q1 2021 survey asked business members whether the SDGs currently formed part of the business strategic planning and decision making.
In our survey, we asked members to share the priorities for their business or sector in the Cork region.
Affordability and security of future energy as we transition through climate change agenda. Cathal Marley, ERVIA
PANDEMIC AND BREXIT SUPPORTS
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
With 84% of respondents reporting business confidence, this is consistent with the previous quarter (Q4 2020) which noted 83% of respondents indicating confidence, an encouraging trend and upward trajectory from the 68% in Q3 of 2020.
Q1 TURNOVER AND NET PROFIT
The latest survey shows that 42% of respondents anticipate an increase in turnover in the second quarter of 2021, with 23% expecting turnover to decrease over the same period. In respect of net profits, 36% of respondents expect an increase in Q2.
Continued support of the rates suspension would be a great support to businesses until we reopen. Marion O’Gorman, Kilkenny Group
Ensure the City high streets remain viable and vibrant to both business operators and be destination of choice for visitors & tourists. Andrew Dwyer, Musgrave
EMPLOYMENT DATA
The most recent Q4 2020 quarter reported 38% of respondents expecting an increase to employee number over the 12 months ahead. In Q1 2020, and before the Covid pandemic was on Irish shores, 16% of respondents had anticipated an increase to employee numbers here.
Of the 54% indicating vacancies, 27% are reporting difficulty filling the open roles (i.e., remaining unfilled for greater than 3 months since initial advertisement). These vacancies are predominantly at management level in finance, hospitality and professional services.
CONFIDENCE IN THE IRISH ECONOMY
The Q1 2021 survey shows confidence levels in the Irish economy at 52%, with 3% of respondents reporting as very confident. There is a steadying in confidence levels here between Q1 2021 and the previous Q4 2020 which saw confidence reported by 55% of respondents, a marked increase from the 29% in Q3 2020
TOP 3 THREATS TO BUSINESS GROWTH
As with previous quarters, Covid-19 ranks as the top threat to business growth with the only change being the increased ranking of cost competitiveness, replacing changing consumer spending and reduced orders in the top 3.
