Access to skilled labour is putting pressure on firms across Ireland, with one in three struggling to find the right people for their business, a survey has shown.
But the island’s business landscape remains broadly positive, with third of firms surveyed for InterTradeIreland’s latest quarterly business monitor admitting they are firmly in growth mode.
The survey, which takes the temperature of 750 SMEs in both jurisdictions, highlights that more than half the respondents (56%) are stable, continuing a positive trend since the start this year.
But a persistent issue is access to people. One in three firms are struggling to find the right skills, and over half of this cohort (58%) are experiencing long term vacancies while nearly a quarter (22%) 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%) of all businesses with more than three 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%) are investing more in training and development.
As an indicator of economic demand, over a quarter of businesses saw sales rise in quarter two, while one in three expect sales to rise in the next six months.
Seven 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.
On the issue of Brexit, a third of respondents said they are not impacted, while 46% indicated they have adjusted in full or to a large extent. Two in ten (21%) say they have only adapted to a small extent or not at all.
And six in ten (62%) of businesses surveyed say they have no knowledge at all of the Windsor Framework.
InterTradeIreland strategy director Martin Robinson said: “We have developed a trade hub which is a powerful resource for businesses looking to trade effectively and efficiently between Ireland, Northern Ireland and GB, with a fully funded trade health check available. It also contains information for SMEs who want to know more about customs, VAT, regulation and cross-border employment.
“Alongside our bespoke trade programmes, we can enable firms to take advantage of the growing £10 billion cross-border market. I 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.”