Companies forced to tighten belts over economy

MANY company owner managers have, or are considering, cutting back their businesses due to the economic downturn, inflationary pressures and increased international competition, according to ISME.

One of the main causes is inflationary pressures in the economy as a result of significant increases in production costs including wages, rents, raw materials and energy, together with exorbitant insurance costs.

Increased competition from central Europe and the Far East is adding to domestic problems. And the retrenchment of the multinational sector and the loss of sub-supply opportunities is another source of concern.