ONLY two per cent of businesses across Ireland claims to have a plan in place to deal with the consequences of Brexit, according to the findings of a study by cross-border business body InterTradeIreland.
And amid increasing fears that a "hard and potentially chaotic" Brexit is under way, it's being seen as a shocking scale of under-preparedness.
The findings reflect a widespread nervousness and state of uncertainty among Ireland's business community with the UK just weeks away from triggering the Article 50 process which will potentially change the face of cross-border business forever.
The quarterly InterTradeIreland business monitor, covering October to December, says that while there is a "resilient and sustained recovery" for businesses right now, most are moving into challenging times from a position of relative strength.
The report points to the prospect of rising energy prices (45 per cent of all businesses surveyed cite this as a current issue for their business) while general increasing costs exercise most of the firms quizzed for the survey.
More than half (51 per cent) of businesses in cross-border sales are also concerned about currency/exchange rates, and the other key concern is around recruiting skilled staff especially in the construction section (difficulties were expressed by 37 per cent of respondents).
InterTradeIreland's strategy and policy director Aidan Gough said: “We're seeing a notable symmetry in challenges faced by firms both north and south.
"The number of companies across the island reporting stability or growth in the last quarter has remained fairly constant at 84 per cent, but exporters continue to fare better than non-exporters with 51 per cent experiencing growth compared to 36 per cent respectively.”
He added: “There is an emerging trend in the number of construction businesses reporting difficulties in recruiting skilled staff.
“This sector was hit harder than others during the downturn but is reporting robust signs of resurgence with 82 per cent of firms confirming they are stable or in growth mode. Over 75 per cent of businesses in the sector say they are profitable or very profitable.
"But that emerging skills shortage is obviously an obstacle to construction's continued growth and may lead to building firms beginning to feel the pinch in terms of the acquisition of new contracts and servicing the needs of fuller order books.”
He adds: “With almost a third of firms reporting that they are running at break-even and 78 per cent already running close to or at capacity, there is a vulnerable tier of the economy that could be exposed to inflationary pressures.
"Nevertheless, the overall message is that of a robust economy, with companies going into potentially challenging times from a position of relative strength.”
The InterTradeIreland monitor comes as two councils in the north west - which, combined, make up the fourth largest city region within Ireland - published a joint report exploring the challenges and opportunities of Brexit.
Derry City & Strabane District Council in conjunction with Donegal County Council have collaborated on the document which sought the views of experts in the fields of education, health, business, agriculture, aquaculture, tourism, retailing, financial services, logistics and construction.
The report (available at www.derrystrabane.com/Subsites/Strategic-Growth/Publications) considers the wide ranging implications of a land border between an EU member state and a non-EU member state, taking into account the high levels of integration unique to this region.
It also explores the broader impact on the UK and Ireland and some initial estimates of the economic effects, particularly during the transitional period as the Brexit arrangements are finalised.
