Fingal Chamber is pleased to present the findings from its first Business Sentiment Survey for 2024. This survey plays a crucial role in shaping and refining the Chamber’s advocacy and policy framework by highlighting the significant issues faced by businesses. The survey aims to identify the key challenges and workable solutions to support businesses in Fingal.
The Chamber's mission is to advocate for businesses, providing advice, support, referrals, lobbying, and representation to drive positive change for the business community in Fingal. We collaborate with Government Ministers, MEPs, the Mayor of Fingal, Fingal County Council, and local representatives to promote pro-business and employment initiatives.
The survey was conducted between May and June 2024, focusing on immediate and short-term challenges facing businesses in the Fingal region. This year’s survey included additional questions to reflect new challenges that have arisen since the previous survey.
• 35% of responses were from businesses with 2 to 10 employees.
• 26% from businesses with 11 to 50 employees.
• 33% from businesses with more than 50 employees.
The majority of responses came from the professional, scientific, and technical sectors. This was followed closely by the hospitality and tourism sectors.
Other represented industries included aviation, transport and logistics, manufacturing, and production sectors.
Key Findings
• Housing and rental accommodation for employees emerged as the most critical issue impacting competitiveness in the next six months.
• The availability of skills, talent, and public transport services were also significant concerns.
Business Outlook
• 57% of respondents expect revenue to increase in the next six months.
• 50% anticipate an increase in profits.
• 60% plan to upskill their workforce.
• 40% expect to increase staff numbers.
BUSINESS CHALLENGES
Our survey asked, ‘What is the biggest challenge facing your business in the next six months?’
In response to this question, over 30% of businesses reported that staffing shortages are their biggest current challenge. Additionally, a quarter of respondents indicated that high business costs pose a significant challenge, while environmental issues are a concern for less than 10% of businesses in the region.
INVESTING IN FINGAL
When asked if they have a positive view of Fingal as an investment or growth location for business, a resounding 75% of respondents said they do have a positive view of Fingal for this purpose.
FINGAL’S COMPETITIVENESS
Our survey asked, ‘What is the biggest issue facing Fingal’s competitiveness?’
Almost 50% of respondents said that the lack of investment in infrastructure is the biggest issue facing Fingal’s competitiveness.
The supply of affordable housing for prospective employees, and the cost of doing business with increases in materials, energy and water are major issues facing Fingal’s competitiveness according to businesses in the region.
COSTS OF DOING BUSINESS
We asked, ‘By what percentage have your costs of doing business increased in the past 12 months?’
Responses varied widely, with businesses reporting increases in operating costs ranging from 5% to 300%.
A recent report by PWC placed Ireland in 9th position amongst 33 major EMEA economies as a location for private businesses to thrive. However, Ireland’s macroeconomic ranking dropped from 1st to 6th place due to rising costs in 2023, particularly affecting private businesses. The country ranked 30th out of 33 for electricity costs and 29th out of 33 for cost of living, impacting its overall standing.
The report stated that private businesses are facing even more cost pressures from an increased minimum wage, pension auto enrolment and employer PRSI hikes all coming together. It went on to say that while it is good news that the Minister for Finance announced that the interest rate on the tax debt frozen since the pandemic has been cut to zero, and the Revenue Commissioners have indicated that they will take a flexible approach to the repayments, new or creative long term solutions may still be needed to help businesses service or repay the debt due while continuing to grow.
We also asked, ‘If the costs of doing business were to increase by more than 5% in the next 12 months, what impact would it have on your business?’
Over 80% of respondents said that it would have a significant impact, a very negative impact, staff would be laid off, costs would increase to customers, there would be less funds to re-invest in the business and in some instances businesses would have no option but to close down.
PwC’s report suggests that supporting businesses in investing in their finance teams and transformation will help them grow and expand internationally. Allowing entrepreneurs and founders to access a reduced 10% rate of Entrepreneurs Relief on salaries, without needing to sell their businesses, will encourage them to stay in the private sector and become global leaders. A clear and simple government policy to help private businesses thrive will significantly benefit Ireland’s economy and reduce dependency on foreign direct investment.
SKILLS AND TRAINING
Our survey asked businesses if they are currently experiencing a skills gap, and over 60% of respondents confirmed they are.
The specific areas where businesses are facing skills shortages include IT, sales and marketing, planning and development, English proficiency, qualified mechanical technicians, chefs, clinical skills, and leadership.
Fingal Chamber’s HR partners Adare Human Resource Management says the shortage of trained individuals in key industries has created a serious burden for businesses in terms of talent acquisition and retention. The knock-on effect of this is that the impact on salary costs has been significant, with companies being forced to give greater wages in order to attract and retain personnel. While this trend benefits individuals by providing greater pay packages, it also offers challenges to Employers and the wider economy by increasing labour costs.
A recent survey by Workhuman, the international recruitment agency, found that employees in Ireland are struggling to meet the demands of their jobs due to skills gaps. The research found that 70% of employees say they work with one or more people whose skill sets do not meet the criteria of the role. This is resulting in 24% of employees saying they are being slowed down because they have to provide a lot of support to those colleagues.
We asked, ‘Which training areas would your company be interested in investing in?’
40% said training in sales growth would greatly benefit them, while 35% said they need to invest in digital skills, 25% need training support for customer/client engagement and in business strategy development.
Fingal Chamber’s partnership with Skillnet Ireland is more important and relevant now more than ever. Skillnet Ireland is an enterprise-led training network for companies in the Fingal region who want to work collaboratively to respond locally to skill needs within their business.
The network supports regional development by helping local businesses to arrive at shared local solutions that are more accessible, more affordable and ultimately, more effective at meeting their needs. The network addresses both technical and non-technical skills needs across multiple sectors.
Open to private enterprises based in the Fingal region, the objective of the network is to support member companies to develop and grow through the provision of relevant and flexible training.
Benefits of Skillnet training include more productive staff, improved retention rates, increased staff motivation, cost-effective training, a skilled workforce and a competitive and progressive workplace.
Fingal Chamber Skillnet Ireland provides supports to network member companies in the following areas:
• Assist businesses to identify and address their skills needs
• Information regarding successful approaches to learning and talent development
• Flexible training programmes tailored to the needs of businesses in the region
• Guidance on achieving value for money when investing in learning and development
• Programmes for current and future leaders
• Certified and non-certified technical training
• Access to a network of businesses within the region
• Conferences, seminars, and other informal learning and networking events
HOUSING
A substantial 75% of businesses in Fingal reported that the availability of residential accommodation for staff is challenging or very challenging when it comes to attracting and retaining employees.
In its recent report The National Competitiveness and Productivity Council (NCPC) is warning that the housing market is currently hindering Ireland's competitiveness.
The NCPC notes that the housing issue is also undermining potential improvements in sustainable growth and people's well-being.
According to the NCPC, housing affordability is a significant concern for Ireland, and its latest analysis focuses on the effects of labour capacity constraints on residential construction.
It also states that the effects of labour capacity constraints poses a risk to Ireland’s international competitiveness, a concern shared by many advanced economies.
The report highlights the severe labour shortages in the construction sector, noting it is the only sector with fewer employees today than during the Celtic Tiger era, despite Ireland’s larger population now.
Addressing these labour market constraints is crucial for meeting targets under the Government’s Housing for All plan, as well as goals for retrofitting and emissions reduction under its climate plan, the NCPC said.
The NCPC report emphasise the need to closely monitor the competing demands for labour across the construction sector, particularly the impact on younger people competing in the housing market.
When asked what innovative policies should be introduced to quickly address the housing crisis, over 70% of respondents offered a range of suggestions. These included building as many houses and apartments as quickly as possible, reducing bureaucracy, setting rent caps, and making housing more affordable.
Additionally, respondents proposed limiting the number of units that can be sold to any one person or group, simplifying the planning process, and releasing publicly held lands for housing development.
Other suggestions included building modular fast-track housing, incentivising companies to develop vacant and derelict homes for staff, and preventing vulture funds from buying apartments.
DUBLIN AIRPORT CAP
Regarding the passenger cap at Dublin Airport, over 50% of businesses in Fingal stated that the 32 million passenger limit would affect their operations.
The 32 million passenger cap at Dublin Airport refers to a regulatory limit on the number of passengers that the airport is permitted to handle annually. This cap is set by the planning authorities to manage and control the airport's capacity, ensuring that infrastructure, safety, environmental, and operational standards are maintained.
The cap aims to balance the growth of the airport with considerations such as noise pollution, traffic congestion, and the overall impact on the surrounding communities and environment. This limit impacts airlines, passengers, and local businesses by potentially restricting the number of flights and passengers that can use the airport, thereby influencing travel, tourism, and economic activities in the region.
In the context of Fingal businesses, this cap is significant because it directly affects the flow of goods, services, and people. A restriction on the number of passengers can limit the growth opportunities for businesses that rely on air travel for their operations, including tourism, hospitality, and trade sectors.
INFRASTRUCTURE DEVELOPMENT
Unsurprisingly housing and urban development, transport and logistics were the top areas requiring urgent investment from Government.
According to a recent ESG (Environment Social Governance) report in the Sunday Business Post Ireland is facing a severe infrastructure problem across energy, water, housing, and transport. It states that the situation is critical in Dublin with experts warning that water and power systems are at breaking point.
At the recent National Infrastructure Summit, Michael Mahon from Eirgrid and Angela Ryan from Uisce Éireann highlighted how Dublin's infrastructure is overstretched. Urgent solutions like the Shannon to Dublin water pipeline, new wastewater treatment facilities, and replacing high-voltage power cables are needed.
Without these projects, there will be significant environmental and economic impacts. For example, new homes in Dublin may be denied water connections if the Shannon pipeline isn't built. Similarly, housing and transport projects like Metrolink and Dart West cannot proceed without more power.
The report report goes on to say that Ireland also risks missing carbon reduction targets and losing billions in tech investments due to inadequate electricity grid upgrades. The National Competitiveness and Productivity Council warned that infrastructure issues are hurting Ireland's global competitiveness and cited slow progress on technological deployment, a flawed planning system, and skill gaps.
FINGAL COUNTY COUNCIL
Responding to the question of what policies do you think should be adopted by Fingal County Council or Central Government to help your company, businesses in Fingal said they would like to see the following:
• Council to have more contact with businesses,
• encourage more apprenticeships in the region,
• reduce rates, speed up infrastructure deployment and NIMBY planning applications,
• introduce fast track for planning applications,
• provide more affordable housing,
• invest in roads and transport options, improve digital infrastructure in the region,
• provide more supports for small companies,
• require housing developers to install district heating and install district heating pipes in roads,
• policies should be business centred that focus on a fair playing field to do business.
Responding to the question of what should be the key priorities for the newly elected Fingal County Councillors, respondents said the new Council should work to address:
• housing and transportation deficits
• resources for persons with disabilities
• work to remove the cap at Dublin Airport
• address traffic management and gridlock around Fingal
• the cost of doing business
• support and develop energy infrastructure
• speed up rejuvenation of towns and villages
• encourage tourist accommodation in local and costal towns
BUSINESS OUTLOOK
Businesses remain relatively optimistic about the future. Over 60% plan to invest in staff training, nearly 90% anticipate maintaining or increasing their staff numbers, almost 60% expect revenue growth, and nearly 50% foresee an increase in profits.
CONCLUSION
Despite the range of challenges facing businesses in Fingal the outlook remains positive with businesses reporting expected increase in staff numbers, training, revenue and profits in the short term.
Availability of residential accommodation continues very challenging, affecting businesses ability to attract and retain employees. High housing costs are a significant concern, making it difficult for employees to find affordable living options. While severe labour shortages in the construction industry is further hindering the ability to build new housing quickly and meet the growing demand.
Business have indicated their frustration with the complicated planning processes and bureaucratic hurdles slow down housing development, exacerbating the shortage. Innovative solutions, such as releasing publicly held lands for housing development to increase supply, modular fast-track housing and incentivising companies to develop vacant and derelict homes, are suggestions worthy of further investigation.
The Chamber will continue to utilise its partnership with Skillnet Ireland and Adare Human Resource Management to assist businesses in the Fingal region with training and HR expertise. Fingal Chamber Skillnet promotes regional development by facilitating local businesses in finding shared, accessible, affordable, and effective solutions to meet their needs.
This collaboration addresses both technical and non-technical skill requirements across multiple sectors.
Benefits of Skillnet training include increased productivity, improved employee retention, higher staff motivation, cost-effective training, a skilled workforce, and a competitive and progressive workplace.
The feedback from this survey is invaluable for shaping the Chamber’s policy and advocacy efforts and serves as essential input for Fingal County Council’s Executive Team. Fingal Chamber conducts these sentiment surveys twice a year, providing critical insights to members, local authorities, and representatives about the pressing issues facing businesses in Fingal.
We sincerely thank all participating businesses for sharing their views and experiences, which are vital for our ongoing efforts to support and advocate for the Fingal business community.
If you have any comments on our survey, or want to discuss our findings, please contact us at siobhan@fingalchamber.ie
