In the first Economic Trends survey of 2022, Cork Chamber asked members about their experience in the most recent business quarter, Q1 2022 as well as the business outlook for Q2. This survey also gathered information on the current experiences of Cork Chamber member organisations dealing with the rise in energy costs.
Energy has emerged as a key issue for businesses to grapple with in 2022. 29% of respondents reported that energy price increases are currently affecting business profitability and growth. To overcome the rising cost of energy companies face a significant challenge to invest in energy efficiency and sustainable energy measures.
It is of interest to note that 66% of companies surveyed have actively managed energy in a bid to make savings in Q1 2022 and 82% of respondents agree that government should implement measures to help protect businesses from extreme cost pressures in the short term.
The number of responding businesses expecting to increase employee numbers in the coming months has decreased from 62% in Q4 2021, to 50% in this recent quarter. The high of 62% was reflective of expectations around businesses reopening as restrictions were easing.
43% of respondent businesses with current vacancies are reporting difficulty filling the open roles (i.e., remaining unfilled greater than 3 months). These vacancies are present across multiple sectors and vary widely, companies are specifically seeking experienced technical talent, manufacturing skills, Operators, Technicians and Engineers and Life Science Engineers.
The latest Q1 survey shows that 51% of survey respondents experienced a turnover increase in Q1 2022, this compares to a 63% turnover increase in Q4 2021. 62% of respondents anticipate an increase in turnover, 21% anticipate it to stay the same and 3% decrease in the second quarter of 2022.
In respect of net profits, 42% of respondents reported a net profit increase in Q1 2022, this compares to 50% of survey respondents reporting a net profit increase in Q4 2021.
The Q1 2022 survey shows confidence levels in the Irish economy are steady at 78%, with 3% of respondents reporting as very confident. This outlook is a marginal increase with Q4 2021 reporting 76% confidence. This is a marked increase from 52% in Q1 2021.
