Cork firms facing 'immeasurable stress', business survey finds

Cork Chamber says turnover in over half of firms surveyed has fallen 

Paula Cogan, president Cork Chamber, said 48% of businesses were initiating changes to work practices and organisational policy to formalise a work-from-home offering for employees on an ongoing basis. Picture:  Darragh Kane

Turnover fell for around half of all firms in Cork as they face "immeasurable stress" during the Covid-19 crisis, according to the latest survey by Cork Chamber. 

The survey covered the three months to the end of September and was carried out before the budget, but still reflected business fears about the potential for further restrictions in the Covid-19 health emergency.

Business confidence slipped further in the third quarter and over half of all firms said turnover had fallen.

Their confidence in the outlook for the Irish economy also slid significantly, as they focused on the business storm caused by Covid-19, changing consumer tastes and reduced orders, as well as Brexit.        

"The third economic trends report of 2020 captures the sentiment of the Cork business community in the transition from the initial shock waves of the Covid-19 pandemic to a considerably altered business operating landscape across the region and country," the chamber said. 

Government must provide as much assistance to SMEs as possible to help recovery

Chamber president Paula Cogan said that Cork businesses were facing "immeasurable stress" amid the Covid-19 fallout.    

"While navigating what is completely uncharted territory, the latest trends reflect the growing concern of the business community as they seek out a degree of certainty," Ms Cogan said, and that firms will likely have to "weather this storm for some time yet". 

Welcoming the role that multinationals were playing in supporting jobs and Government tax revenues since the onset of the crisis, the chamber nonetheless said the Government must provide as much assistance to SMEs as possible to help recovery.  

"While we are fortunate to have a duality in our economic model, with our FDI businesses sustaining a less than expected impact to our GDP, but the essential role of our SMEs, and independent operators must remain central to the recovery and every effort to assure and support the crucial role of these businesses must be made,” the chamber said.   

The survey found that over a fifth of businesses in the survey said most of their staff were working from home. 

When asked in late September before health officials had advised for the return of the highest levels of restrictions, Cork businesses had expected more staff to return to their offices.

"Though difficult to gauge the return to offices with much of the anticipated return now reversed, we can be certain that the pandemic has accelerated changes to the way we work, with blended working likely being adopted as we report that 48% of businesses were initiating changes to work practices and organisational policy to formalise a work-from-home offering for employees on an ongoing basis," the chamber said.