Exporters confident of trade hike

Irish exporters are confident exports will increase next year despite concerns about their ability to get credit and the health of Ireland’s main trading partners.

The Irish Exporters Association (IEA) Survey and International Trade Finance Review 2012 found 58% of firms reported increased exports in 2012 and 77% of those surveyed think exports will increase in 2013.

IEA chief executive John Whelan said the results were encouraging, but the big cost of doing business was still dragging exporters down.

“The willingness of Irish business to look further afield for opportunities is encouraging, with 71% of Irish exporters targeting new markets. However Ireland’s high cost base — particularly labour and energy costs — continue to be a drag on growth. Two out of three participants in the survey reported an increased cost base in 2012,” he said.

Despite the positive outlook from exporters, a huge number of them report they still have problems accessing finance, with 73% of companies surveyed saying there has been no improvement in the availability of credit. One in three exporting businesses reported that their bank does not understand their working capital cycle.

Companies also reported that where loans were approved in several cases the interest rates charged were above the levels exporters could pay.

Grant Thornton partner Patrick Burke said that providing finance should remain a policy priority for the Government.

“It is essential for economic recovery that the export sector has better access to finance to fund growth. Given the difficulties obtaining finance it should remain a policy priority to improve the flow of credit to export companies who are the key drivers of growth that can help stimulate recovery in the domestic sector,” he said.

The report noted that Irish exporters remain the key engine for Irish growth and although they are facing a tough 2013 they remain upbeat and confident.