Most businesses on the island of Ireland are stable or growing, but many harbour concern about future access to skilled workers, a report said today.
The All-Island Business Monitor from cross-border body InterTradeIreland said a third of 750 small to medium-sized firms were in growth mode, while 56% were stable.
But one in three said they were struggling to find people with the right skills, with nearly 60% experiencing long-term vacancies.
In particular, the construction, manufacturing and leisure, hotels and catering sectors were feeling the effects of a tight labour market.
And companies of all kinds who are reporting growth, and those with 11 to 49 employees, were also feeling the impact of a tight labour market.
Economy Minister Conor Murphy said: “The employment figures are extremely strong at the moment, which is a signal of a buoyant economy across the island.
“As part of my focus on good jobs and regional balance, we are working closely with employers to ensure a correct skills match-up for their needs. I have recently announced a number of skills academies across the north which help to provide employers with the skills talent that they require.
“I would encourage businesses to avail of supports available from economic agencies, including InterTradeIreland, that focus on improving innovation, efficiency and driving productivity.”
He added that his department would continue to work with InterTradeIreland, Enterprise Ireland, the Republic’s inward investment agency, and Invest NI “to ensure businesses are able to fully maximise the opportunities that dual market access presents”.
As an indicator of economic demand, over a quarter of businesses saw sales rise in the second quarter of the year, while one in three expect sales to rise in the next six months.
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And 70% were profitable, helped by the easing of energy and other cost pressures.
A third of firms said they were not impacted by Brexit, 46% said they have adjusted in full or to a large extent while one in five say they have only adapted to a small extent or not at all.
Ronan Callan, director of operations for precision engineering Exact Group outside Newry, said: “We are invested in up-skilling staff and we are also taking advantage of dual market access to grow our business further as we supply right across the island and Great Britain.
“Our order book is in a strong position.”
Overall, 62% of businesses surveyed say they have no knowledge at all of the Windsor Framework.
Martin Robinson, director of strategy for InterTradeIreland, said the body had developed a trade hub for SMEs seeking information about customs, VAT and cross-border employment.
He added: “There are also changes coming in for businesses receiving parcels from Great Britain. If any firm needs help to prepare for these changes we can provide practical support.
“I would encourage businesses to contact us to see how we can help provide the answers to their questions and the practical support they need to grow their cross-border trade.”