Very mixed outlooks for Irish SMEs, surveys indicate

Food SMEs are upbeat about the next 12 months, but construction SMEs face a more uncertain future, new reports suggest.

Three-quarters of food sector SMEs expect their revenue to grow over the next 12 months, with nearly 70% not intending to delay investment, a survey shows.

The study – conducted by PwC for the Love Irish Food industry group – found that despite Brexit, the UK remains a key market for Irish food SMEs, with more than a quarter still viewing it as their most important export market.

Conversely, separate research has painted a grim picture for SMEs in the construction sector. The Construction Industry Federation has warned that a “significant” number of construction SMEs could go out of business if there is any further delay in reopening the sector on a widespread basis.

Meanwhile, the introduction of any State-backed domestic tourism-targeted spending initiatives could boost the domestic economy by up to €6bn, the Banking & Payments Federation Ireland has estimated.

The Government is expected to replace the heavily criticised €270m Stay and Spend scheme with a more consumer-friendly initiative aimed at boosting domestic holiday spend.

One which promotes value for money and removes challenges linked with the original Stay and Spend idea could unlock some of the €6bn which Irish consumers spent on overseas holidays in 2019, according to BPFI CEO Brian Hayes.

"While many consumers may have additional savings available that can be spent on domestic tourism, value for money will be an important factor that will influence their decisions in how they will spend," he said.