NORTHERN Ireland firms are performing well below their potential, according to advisory firm RSM McClure Watters.
It said business "must think smarter" and make use of all available technology resources and funding options to boost productivity.
Officials statistics, which cover 2013, found the north's productivity to be around 82 per cent of the UK average - a figure which has fallen sharply since 2002.
RSM McClure Watters said a stagnation in productivity levels during the last decade had also seen an increase in the gap in output between Northern Ireland and the Republic.
The firm's business development manager Clare Galloway said: “Local companies are facing a situation which has been dubbed the ‘productivity puzzle’. The spotlight will now fall firmly on efficiency and on ensuring that businesses are not working harder to produce less.
"During the recession many companies turned to cheap labour options as opposed to restructuring their production processes to review productivity. This was in part as a result of restricted access to finance which prevented the purchase of new machinery and held back investments in innovation."
She said companies should be accessing some of the technology solutions available to aid productivity.
“There is now a broad range of tech-based software solutions which can address these productivity issues and we are keen to advise local companies to find the best solution for their requirements," she said.
"Our LifeCycle programme is firmly focused on assisting companies to grow stronger and faster, by improving efficiencies using new real time cloud accounting software such as Xero and Receipt Bank. In some instances we have seen our clients’ productivity increase by as much as 80 per cent in their financial administration.”
