A quick glance at this year’s Top 100 Northern Ireland Companies listing suggests the local economy has, for a large part, enjoyed a buoyant year.
Turnover, the basis on which the list is compiled, has increased for around 90% of the Top 100 with some impressive performances in the upper echelons of the list.
Of note, there are now six companies in Northern Ireland with turnover of over £1bn, two more than last year and a significant improvement on 10 years ago when we counted just one.
That company was Moy Park and now, as then, it has taken the top spot, leading an illustrious group from the sector which prove agri-food remains a powerful economic force in Northern Ireland, closely followed energy, manufacturing and construction.
While turnover reflects the level of investment companies are making in the region, the profit figures tell the tale of businesses which were coping with the impact of higher inflation and the accompanying interest rate hikes.
That chimes with KPMG’s experience over the last year or so but with input inflation slowing and borrowing rates easing, cost pressures have eased and should continue to do so in the near future.
Certainly, there are some fantastic examples of entrepreneurism, tenacity and strategic thinking from the companies on the list which, day in and day out, continue to punch above their weight, both locally and further afield.
They have had a tough few years, coping with numerous challenges including Covid-19, soaring inflation and the absence of political leadership at Stormont.
But that was the past.
Now, those challenges have eased and there a number of unique opportunities well within reach which have the potential to supercharge this region.
Most pertinently, the restoration of the Executive revives the potential to reduce the main rate of corporation tax. If enacted, it will help level the playing field across the island of Ireland for indigenous companies and in the race for foreign direct investment. The UK government has already sanctioned the devolution of corporation tax setting powers to Stormont, powers which if implemented would allow it to reduce the rate to 12.5%, on a par with RoI and well below the UK rate of 25%.
Meanwhile, the piece of legislation which sets Northern Ireland apart competitively is the Windsor Framework. Under the terms of the Brexit agreement, it provides Northern Ireland with unfettered trade access to both GB and the European Union, a unique position which will benefit the region enormously.
Businesses are always looking for unique selling points to differentiate themselves from the competition. The above opportunities provide just that from an economy point of view and are no doubt the envy of regions around the world.
As KPMG enters its 50th year of operation in Northern Ireland, we are very much in growth mode and see huge potential, not just for our business but for our clients. Our confidence stems from the fact the fuel needed to realise these opportunities – a skilled workforce – is growing. Because of a world-class education system, a dynamic broad-based economy and a standard of living rated one of the best in the world, Northern Ireland now has a diverse, highly-skilled workforce from around the world to power our ambitions.
That has already provided the fuel for our growth, and I know it will do the same for companies in every corner of the region and in every sector in the future.
For now, congratulations to everyone on the Top 100 Companies list and we look forward to working with you as we collectively take Northern Ireland to new economic heights in the coming years.