Exporters confident but concerns remain

EXPORTERS remain confident about their prospects in 2012, but most also have major concerns about business conditions here.

The latest annual survey from the Irish Exporters’ Association (IEA) notes that, while 80% of export-orientated firms are confident of increasing business next year, most have serious misgivings over lack of Government support.

According to the latest survey — the second major Irish export sector study to be published this week — there are “high degrees of dissatisfaction” with Government agency grant application processes, while 87% of companies are still crying out for a Government-supported export credit insurance scheme.

Three out of four companies are witnessing rises in their everyday business costs, while 75% say that Government red tape is having an adverse impact on their business. Similarly, the vast majority of exporters claim to have seen no improvement in access to finance in the past 12 months.

“Exporters continue to play a critical part in the rejuvenation of the Irish economy. While export-led growth is being achieved, this report identifies a number of key areas which require action. Strain is particularly evident in the area of competitiveness of our cost base,” said Patrick Burke, partner with Grant Thornton Ireland, which sponsored the new report.

IEA chief executive John Whelan said “Optimism and confidence, amongst exporters, is clearly expressed in this survey, with 80% forecasting an increase in exports next year. This message must be taken in conjunction with the other key messages from exporters in the survey. The cost base for exporters is still a problem, with labour costs the number one concern, followed by trade finance and energy costs.”