Northern Ireland Chamber of Commerce and Industry Ambition Magazine

NEWS

Brian Murphy, managing partner, BDO NI, discusses the latest QES findings BDO NI Commentary:

No matter what challenges and uncertainties NI businesses have to face, it’s heartening to see that 79% are still trading well and are just getting on with it. This is similar to where we have been in recent years and shows that regardless of the wider economic picture, and no matter what the commentators say, our local firms persevere and succeed. We note that a further 15% are still covering costs with 6% struggling to do so. Without diminishing the challenges these companies may face; it remains hugely encouraging to see so many local firms continue to do well. Globally, despite all the concerns and media coverage about US tariffs and new trading arrangements, we note that nearly 40% say this has had no impact, with a further 10% saying it has been positive for their business. Having said that, the concerns of the 21% who have been negatively impacted need to be addressed. Given time, these figures may well fluctuate as our new trading realities become clearer. Furthermore, it’s encouraging to see that most businesses see a positive impact on the NI and UK economies as a result of the Trade and Cooperation Agreement ‘reset’ between the UK and EU. This reset will positively influence a more cooperative UK-EU relationship, stabilising post-Brexit trade and political ties and ultimately bringing positive outcomes for the local economy and strengthening the businesses that operate within it. Recruitment intentions have always provided a clear indication of business performance and confidence, and again it is reassuring to see that recruitment activity remains incredibly high, with 81% of manufacturers and 69% of services either currently seeking to take on new staff or planning to. Indeed, with its domestic and export order books remaining strong, we are pleased to see that manufacturing respondents are planning to grow their staff even more. In addition, investment intention balances around training are positive for both manufacturing and services sectors, showcasing the ongoing importance placed on staff development by businesses in their efforts to grow. As ever, challenges remain as these firms seek to find the best candidates, however, given the prominence the NI Executive has placed on skills development in the Programme for Government, we trust this situation will improve. Although the overwhelming majority of businesses here continue to trade well, we recognise that 52% have noticed “a little” slowdown, however, we hope that as the confusion regarding the US tariffs situation stabilises, these figures may indeed reverse and become positive. We are also very cognisant of the biggest concerns local firms have, regarding inflation and business taxation, and trust that the UK Government will take account of these concerns ahead of the Autumn Budget. Given the positive economic momentum that recent quarters’ results have shown us, it’s clear to me that the all-too-common spectre of ‘uncertainty’ no longer has the same hold over NI businesses that it used to, and long may this continue. Looking to the future, this momentum can be enhanced even further through collaboration with our elected representatives and other stakeholders. This presents NI PLC with a very unique opportunity, an opportunity that we cannot afford to waste.

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