InterTradeIreland’s All-Island business monitor reveals that access to skilled labour is putting pressure on firms although the business landscape remains broadly positive.
Press Release
InterTradeIreland’s latest All-Island Business Monitor reveals most businesses across the island are stable or growing, though firms are indicating that lack of access to skilled employees could potentially constrain growth in the long run.
The latest findings from the survey, which takes the temperature of 750 SMEs every quarter across the island highlights that a third are in growth mode, while 56 per cent are stable, continuing a positive trend since the start of 2024.
However, a persistent issue is access to people. 1 in 3 firms are struggling to find the right skills for their business. Over half of these (58 per cent) are experiencing long term vacancies while nearly a quarter (22 per cent) are dealing with short term skills gaps.
In particular, the construction, manufacturing and leisure, hotels and catering sectors along with companies reporting growth and those with 11-49 employees are feeling the impact of a tight labour market. When asked about the steps that firms are taking to address any skills gaps, close to a third (31 per cent) of all businesses with more than 3 staff said they are embracing new technologies. For those that are struggling to access skilled labour, just over half are increasing recruitment activity and widening their search. Fewer (16 per cent) are investing more in training and development.
Economy Minister, Conor Murphy said:
“The employment figures are extremely strong at the moment, which is a signal of a buoyant economy across the island. As part of my focus on good jobs and regional balance, we are working closely with employers to ensure a correct skills match-up for their needs. I have recently announced a number of skills academies across the north which help to provide employers with the skills talent that they require.
I would encourage businesses to avail of supports available from economic agencies, including InterTradeIreland, that focus on improving innovation, efficiency and driving productivity.
My Department will also continue to work with InterTradeIreland, Enterprise Ireland and Invest NI to ensure businesses are able to fully maximise the opportunities that dual market access presents.”
As an indicator of economic demand, over a quarter of businesses saw sales rise in Q2 while 1 in 3 expect sales to rise in the next 6 months. 7 in 10 are profitable, helped by the easing of the significant energy and wider cost pressures that have pervaded the business economy over the last couple of years, although cost pressures remain the most important concern for businesses.
The survey also asked businesses how they have adapted to Brexit – a third responded that they are not impacted, 46 per cent indicated they have adjusted in full or to a large extent while 21 per cent say they have only adapted to a small extent or not at all.
Precision Engineering firm Exact Group from outside Newry works in the agriculture, aerospace, medical and marine space. It’s NI Director of Operations, Ronan Callan, says:
“We are invested in up-skilling staff and we are also taking advantage of dual market access to grow our business further as we supply right across the island and Great Britian. Our order book is in a strong position.”
Overall, 62 per cent of businesses surveyed say they have no knowledge at all of the Windsor Framework. While it is not applicable to all, it is still likely that a significant proportion of firms would benefit from a better understanding of the outworkings of the Windsor Framework.
Director of Strategy for InterTradeIreland, Martin Robinson says:
“InterTradeIreland has developed a Trade Hub which is a powerful resource for business, providing information, advice and support for SMEs who want to know more about customs, VAT and cross-border employment and includes a fully funded trade health check. There are also changes coming in for businesses receiving parcels from Great Britain. If any firm needs help to prepare for these changes we can provide practical support. I would encourage businesses to contact us to see how we can help provide the answers to their questions and the practical support they need to grow their cross-border trade.”
Hear the thoughts of Margaret Hearty (CEO), Martin Robinson (Director of Strategy) and Maureen O'Reilly (Independent Economist) on the All-Island Business Monitor Q2 2024.
View our All-Island Business Monitor Findings
This infographic illustrates the findings from the All-Island Business Monitor conducted in Q2 2024.
Select here to download a PDF of the AIBM Q2 2024 infographic.
AIBM Key Findings
Every quarter we publish an in-depth summary of the All-Island Business Monitor Key Findings. Here you can read more detail and an economic analysis of our research.
