External factors forcing firms to 'play it safe' as only 5% considering investing in new markets

Survey found almost half of companies were expecting to spend this year focused primarily on maintaining their current position

Martin Robinson, InterTradeIreland’s director of strategy, said external pressures were forcing most businesses to 'play it safe and adopt a steady-as-she-goes approach' rather than plan for growth.

Only 5% of businesses on the island of Ireland are considering major investments in new markets during 2025, while nearly half will be focusing on just maintaining their current position, a new report by InterTradeIreland has found.

The agency’s latest All-Island Business Monitor, which surveyed 750 businesses north and south of the border, found 55% of companies are maintaining a stable footing at present, but only 5% are considering major investments in new markets or capital this year.

It found 49% of companies were expecting to spend this year focused primarily on maintaining their current position. Another 21% said they would be focusing on growing turnover within their business, while 11% said they were seeking to increase profit margins.

While there are still signs of growth from 32% of businesses, investment aspirations are muted.

InterTradeIreland’s director of strategy Martin Robinson said external pressures were forcing most businesses to “play it safe and adopt a steady-as-she-goes approach” rather than plan for growth.

“Currently, there are elevated external challenges, with local and global trade policy uncertainty and lingering geopolitical tensions which may be curbing the appetite for investment,” he said.

We see that rising overheads and energy costs remain the top internal concerns for firms on the island — each impacting more than half of businesses, driven in large part by global factors.

InterTradeIreland is the all-island economic development agency which works to help across the island to trade cross-border, collaborate, and attract investment.

In addition to external issues, internal issues such as recruitment difficulties are also proving a challenge for businesses on the island, with 40% of those who have tried to recruit in the last two years struggling to find staff.

While most businesses have maintained staffing levels, there is a slight uptick in hiring expectations, particularly among larger firms.

When asked about their current business issues, 55% cited concerns over rising costs and other overheads, while 53% cited rising energy costs.

Cash flow issues were reported by 18% of businesses, and reduced demand was reported by 17%.

Despite these issues, two-thirds of firms surveyed are reporting profit, with 44% anticipating sales growth over the next six months.

“Our survey shows that those businesses that do have bigger ambitions currently are those who are trading cross-border,” Mr Robinson said.

“It’s important for businesses to continue seeking support to innovate and address skill gaps. While the current environment may seem uncertain, focusing on innovation can drive long-term growth,” he said.

Post-Brexit trading disruptions are still impacting one in five businesses on the island, according to the report, with 68% of those stating they have had to modify their supply chain as a result. Over half, 54%, have also had to adjust to more paperwork, and 42% have had to spend more time and money adapting to new regulations.