ECONOMIC TRENDS - Cork Chamber
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ECONOMIC
TRENDS
QUARTER 2 2021
Keeping Cork Connected
The past year has highlighted the resilience of Cork’s While digital connectivity is paramount for the technology
business community, and the ability of organisations sector, which continues to dominate many of the new IDA
both large and small to pivot and reinvent the way announcements in Cork, the established manufacturing
they deliver their products and services. Staying sector, including the indigenous agri-food sector, has been
connected to our international networks has become facing challenges in physical connectivity when it comes
more important than ever, to ensure that we do not to supply chain. Due to the perfect storm of the global
fall victim to being ‘out of sight and out of mind’. pandemic and Brexit fallout, companies have experienced
significant transport delays and increased costs when
With travel curtailed, business development, sales and
moving products internationally. While it is hoped that some
marketing have become a completely virtual and online
of these issues will resolve themselves as businesses become
contest. Being seen and heard in this new virtual world is
more familiar with the customs implications of Brexit, and
challenging, in particular for those selling Cork and Ireland
as the airline sector begins to open up again, organisations
as a potential investment location. Nonetheless, in the first
such as the Port of Cork and their shipping partners are
6 months of 2021, 11 IDA clients have announced new
working hard to improve connectivity out of Cork.
projects (including 8 expansions of existing Irish operations)
which include close to 400 direct jobs for Cork, as well as In the last year alone, we have seen a significant increase in
additional jobs that will be forthcoming from over 700 roles sea transport options for companies in the region with the
announced as part of multi-region expansions which include introduction of new direct freight and haulage routes, and
Cork. These companies are growing their footprint in the the expansion of existing routes, from Cork direct to the USA
Cork region in multiple sectors and disciplines, including (ICL), Zeebrugge (CLdN), Roscoff (Brittany Ferries), Antwerp
wireless communications technology; life sciences; data (Grimaldi Group) and Southampton (Unifeeder).
security and analytics; software engineering; thermal
process validation and monitoring; AI; financial services;
supply chain technology.
Sponsored by
CorkChamber.ie
QUARTER 2
2021
Enhancing the
public realm to create
locations for communities
to engage and maximise
SURVEY RESULTS facilities on the river.
Niall Kenny
AB Sales
In the latest Cork Chamber Economic Trends Survey, Cork Chamber
reports on the business outlook for the third quarter of 2021 and the
year ahead, and member experiences of the most recent business
quarter, Q2 2021. The survey reports on business experiences, the Insurance for business,
specifically public liability
overall operating landscape and the business priorities ahead of Budget
and Tour Agent insurance is
2022. While evolving in the final weeks due to the emerging news and very difficult to get in Ireland.
rising case numbers of the Covid Delta variant and the subsequent This is very worrying.
announcement postponing the reopening of indoor hospitality, this Máire Ní Mhurchú,
had been a period of relative stability with considerable progress in Activity Days Ireland Ltd
the delivery and uptake of vaccines. The survey itself was conducted
over the final two weeks of June, with the government announcement
coming in the very final days of the survey period.
BUDGET 2022
The framework integrates planning about policy impacts
TOP 3 BUDGET PRIORITY AREAS on wellbeing, taking a long term perspective on people,
places and generations. The LSF complements rather
1. Infrastructural investment, and housing stimulus than replaces traditional economic tools such as GDP and
(JOINTLY NUMBER ONE) aims to enhance, support and underpin comprehensive
2. Pandemic business recovery supports and robust policy development. In the latest trends
survey, we asked members whether you would support
3. Education and skills investment the introduction of a similar framework for Ireland
through a commitment to this in Budget 2022.
Closely followed by health investment, employment
measures and tax reform. Other priorities from a number
of respondents included action to address the climate YES 91%
crisis and the importance of measures to tackle Ireland’s
greenhouse gas (GHG) emissions, and a call for the
significant increase of public investment to deliver social NO 9%
and affordable housing. The requirement to address
CAT, CGT rates for entrepreneurs was also raised, noting
the differential in Ireland’s high rates compared to other
EU countries. A flavour of members comments ahead
of Budget 2022:
‘‘
SUPPORT FOR TARGETED AND TIME BOUND With the impact of covid19 and debt accrual for
MEASURES TO STIMULATE THE CONSTRUCTION businesses closed by compulsory order of the
OF MORE URBAN ACCOMMODATION government, the introduction of further fiscal
responsibilities is onerous and will have a serious ‘‘
impact particularly in the recovery time frame.
YES 95% Anne Marie McIlwraith, Just For Men, Manscaping Lounge
NO 5% ‘‘ Housing, housing and housing - the rental market is
currently impossible in Cork and surrounds. This is ‘‘
making it incredibly difficult to attract foreign talent.
JP Kelly, Murphy Geospatial
To be achieved through measures such as a VAT
reduction on construction materials. ‘‘ Stimuli for commercial city center development to
counteract the doughnut effect.” (*development
In 2019, New Zealand Treasury introduced the Living where the city centre becomes empty, as businesses ‘‘
Standards Framework (LSF) to capture what matters for and people move to the outer edge of the city).
New Zealanders’ wellbeing, now and into the future. Patrick Leader, Leaders Menswear
Of the 47% of responding businesses reporting current
BUSINESS CONFIDENCE vacancies, 41% of these are reporting difficulty filling
the open roles (i.e. remaining unfilled for greater than 3
months since the initial advertisement). These vacancies
CONFIDENT 90% are primarily arising in IT, engineering and finance.
NOT CONFIDENT 10% CONFIDENCE IN THE
IRISH ECONOMY
The latest figures report 90% of respondents indicating Very Confident
business confidence. This is an increase on the previous
Confident
4%
quarter which showed 84% of businesses reporting
confidence in Q1. A very encouraging trend and a 23%
Not Confident
significant improvement on the same quarter last year
which saw confidence at 73%.
73%
Q2 % TURNOVER AND NET
PROFIT ESTIMATIONS
Increased The latest findings show an increase in confidence
levels in the Irish economy at 73%, up from 52% in the
Stayed the same
previous quarter.
Decreased
44 TOP 3
30
34 36
30 THREATS TO BUSINESS GROWTH
26
1. COVID-19
% TURNOVER % NET PROFIT
2. Skills availability
The latest survey shows that 65% of respondents expect 3. Cost competitiveness & Changing consumer
an increase in turnover in the third quarter, with 52% behaviour / reduced orders (JOINTLY NUMBER THREE)
anticipating an increase to net profits in the same period.
As with previous quarters, Covid-19 ranks as the top
EMPLOYMENT OUTLOOK threat to business growth. Other areas mentioned by
respondents include the threat of another lockdown
EXPECTED CHANGES TO EMPLOYEE NUMBERS or a slowdown in the economic recovery, changing
OVER THE NEXT 12 MONTHS travel restrictions and its impact on employees, and
concerns over accessing seed over accessing seed
finance for start-ups and scale-ups.
INCREASE 54%
RESPONDING BUSINESSES
STAY THE SAME 41%
Sole Trader
DECREASE 5% Micro Enterprise (2–10) 10%
22%
11–50
26%
51–100 10%
The previous Q1 2021 quarter reported 43% of
respondents expecting an increase to employee number 101–200 7%
over the 12 months ahead. 25%
101–200
NUMBER OF BUSINESSES WITH VACANCIES
ADVERTISED CURRENTLY
The responding businesses represent a broad range
of sectors: Life Sciences & Manufacturing (12%),
Agriculture, Food & Drinks (3%); ICT & Digital Economy
YES 47%
(8%), Tourism, Hospitality, Retail & Leisure (11%), Culture,
Arts, Community & Media (6%), Built Environment (5%),
NO 53% Education & Training (9%), Services (including Financial)
(36%), Health (2%), Transport, Energy & Maritime (8%).Paving
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of Cork
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of COVID-19 or Brexit
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is delighted
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andandhavinghavingthose thosemeaningful
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indeed businesses
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to become newnew sponsor
sponsor of the
of the Cork
Cork
conversations,
conversations, even even
if virtually,
if virtually,
is what
is what andand it isitthe
is the personalised
personalised approach
approach Chamber,
Chamber, Economic
Economic Trends
Trends Report.
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