80% of firms adversely affected by recession — but optimism prevails
That is according to cross-border trade and business development body, InterTrade Ireland, which published its latest quarterly business monitor yesterday, after surveying 1,000 companies on both sides of the border during the last quarter of 2008.
“Perhaps surprisingly 75% of businesses were still optimistic, which demonstrates a degree of self-belief in their ability to survive the downturn,” said InterTrade Ireland chief executive Liam Nellis.
“However, they are realistic and have cited the need for advice on access to finance, managing their cash flow and speeding up payments. Managers want to learn how to become more efficient in areas such as energy, waste and transport. They also expressed a desire for information on new potential cross-border opportunities with 67% stating they wanted to see more co-operation between both parts of the island in the future,” he added.
The latest survey showed that the biggest impact of the recession has been felt — perhaps unsurprisingly — by small and medium sized enterprises (SMEs), with businesses in the Republic particularly affected.
In the main, companies complained that their biggest concerns were cash flow and a general decline in the demand for their goods and services. Nearly 90% of companies reported a tightening of spending by their customers during the three month period in question.
The report also found that 25% of respondents — across the island — reduced their workforce during the timeframe measured and more than 50% saw a decline in turnover.
On both counts, the instances were more pronounced among companies in the Republic than those north of the border and — in terms of falling turnover — was most prevalent in firms in the construction, retail and distribution sectors.
