Irish firms plot overseas growth in response to domestic recession

OVERSEAS expansion has risen to the top of Irish companies’ growth agenda, with nearly half expecting to achieve over 50% of turnover in foreign markets within the next three years.

A survey by professional services giant Deloitte found 75% of expanding firms are looking at the UK to boost sales, with Germany, France and the US other popular locations. The likes of China, Holland, Poland and Spain are also high on the list of desirable destinations.

Padraig Cronin, Deloitte’s head of tax and legal services, said the interest amongst Irish companies in growing their businesses abroad is “very encouraging”.

“While this is, no doubt, a reaction to the weakened demand in the local marketplace, it also shows that many Irish companies have the foresight and agility to adapt to the changing global marketplace in order to not only survive but also grow their business,” he added.

However, the survey showed poor access to funding and low levels of international expertise are major deterrents to overseas expansion.

A third of respondents said they struggled to encourage staff to relocate overseas, and found it hard to source workers abroad.

“The people challenges highlight the need for companies to be able to access a national skills register to enhance their ability to source appropriate talent,” said Mr Cronin.

“In addition, our tax esystem could be amended to incentivise people to work abroad for Irish companies, by giving them a tax rebate in respect of days worked abroad.”