Irish Businesses Brace for Growth Amidst Challenges
January 15, 2025, 4:53 pm
In the heart of Ireland, a pulse of optimism beats stronger than ever. Almost half of Irish businesses are looking ahead with confidence, anticipating growth in 2025. This sentiment emerges from the latest Business & Legal Sentiment Survey conducted by Mason Hayes & Curran. The survey gathered insights from over 1,000 senior business and legal leaders, revealing a landscape marked by both hope and apprehension.
The figures tell a compelling story. Nearly 48% of respondents believe the Irish economy will flourish by the end of 2025, a significant increase from just 32% the previous year. This shift reflects a growing resilience within the business community. While 41% predict a flat economy, only 11% foresee a contraction. This is a marked decline in pessimism from 22% last year. The clouds of doubt are parting, revealing a brighter horizon.
Yet, the road ahead is not without its bumps. Businesses are bracing for challenges that could shake their foundations. Regulatory pressures loom large, with 44% of leaders citing the volume of regulatory change as their biggest concern. The complexity of compliance is a daunting task, akin to navigating a labyrinth. The rapid pace of legislative changes, driven largely by EU mandates, has left many feeling overwhelmed.
The impact of political shifts in the United States adds another layer of uncertainty. Concerns about US corporate tax changes and re-shoring pressures are palpable. Nearly 39% of Irish businesses worry that these changes could diminish Ireland's allure as a destination for foreign direct investment. The specter of tariffs, while less concerning for 23% of respondents, still casts a shadow over the export economy.
Despite these challenges, a significant portion of the business community remains optimistic. A majority, 64%, believe that even with a change in the Irish government, the business environment will remain stable. This suggests that external factors are perceived as more influential than domestic policies. The adaptability of Irish businesses is a testament to their resilience.
In the face of rising costs and staffing challenges, companies are pivoting towards digital transformation and sustainability. About 42% of professionals identify digital innovation as a key focus area. The integration of artificial intelligence and machine learning is seen as a way to boost productivity, even as 22% acknowledge the regulatory compliance challenges that accompany these advancements.
Applegreen, a prominent player in the fuel and convenience store sector, exemplifies this spirit of adaptation. The company recently announced the sale of its UK filling station business to EG On the Move. This strategic move allows Applegreen to redirect its resources towards growth in Ireland, the UK, and the US. The sale encompasses 98 sites and 1,142 employees, with all staff expected to transfer to the new owners, save for a few overlapping roles.
Joe Barrett, co-founder and CEO of Applegreen, emphasized the company's commitment to expanding its presence in the UK market. The company plans to invest significantly in its Welcome Break business, which operates over 6,000 jobs across 59 sites. This includes the development of new locations and the revamping of existing ones. Applegreen is also poised to invest €85 million in its electric vehicle charging business over the next five years, reflecting a broader trend towards sustainability.
As the landscape shifts, housing and infrastructure emerge as critical areas for improving competitiveness in the Irish economy. A staggering 33% of businesses cite housing shortages as the biggest obstacle to growth, while 32% point to infrastructure challenges, particularly in transport and energy. These issues are like weeds in a garden, stifling potential growth.
The survey results paint a picture of a business landscape balancing optimism with pragmatism. While regulatory compliance, tax risks, and domestic barriers remain significant hurdles, businesses are increasingly focused on leveraging innovation and sustainability to secure their future. The adaptability and resilience of Irish businesses shine through, even in the face of uncertainty.
In conclusion, the outlook for Irish businesses in 2025 is a tapestry woven with threads of hope and caution. The challenges are real, but so is the determination to overcome them. As companies navigate the complexities of regulatory changes and external pressures, their focus on innovation and sustainability will be crucial. The road ahead may be fraught with obstacles, but the spirit of resilience is alive and well in Ireland's business community. The future, while uncertain, holds the promise of growth and opportunity.
The figures tell a compelling story. Nearly 48% of respondents believe the Irish economy will flourish by the end of 2025, a significant increase from just 32% the previous year. This shift reflects a growing resilience within the business community. While 41% predict a flat economy, only 11% foresee a contraction. This is a marked decline in pessimism from 22% last year. The clouds of doubt are parting, revealing a brighter horizon.
Yet, the road ahead is not without its bumps. Businesses are bracing for challenges that could shake their foundations. Regulatory pressures loom large, with 44% of leaders citing the volume of regulatory change as their biggest concern. The complexity of compliance is a daunting task, akin to navigating a labyrinth. The rapid pace of legislative changes, driven largely by EU mandates, has left many feeling overwhelmed.
The impact of political shifts in the United States adds another layer of uncertainty. Concerns about US corporate tax changes and re-shoring pressures are palpable. Nearly 39% of Irish businesses worry that these changes could diminish Ireland's allure as a destination for foreign direct investment. The specter of tariffs, while less concerning for 23% of respondents, still casts a shadow over the export economy.
Despite these challenges, a significant portion of the business community remains optimistic. A majority, 64%, believe that even with a change in the Irish government, the business environment will remain stable. This suggests that external factors are perceived as more influential than domestic policies. The adaptability of Irish businesses is a testament to their resilience.
In the face of rising costs and staffing challenges, companies are pivoting towards digital transformation and sustainability. About 42% of professionals identify digital innovation as a key focus area. The integration of artificial intelligence and machine learning is seen as a way to boost productivity, even as 22% acknowledge the regulatory compliance challenges that accompany these advancements.
Applegreen, a prominent player in the fuel and convenience store sector, exemplifies this spirit of adaptation. The company recently announced the sale of its UK filling station business to EG On the Move. This strategic move allows Applegreen to redirect its resources towards growth in Ireland, the UK, and the US. The sale encompasses 98 sites and 1,142 employees, with all staff expected to transfer to the new owners, save for a few overlapping roles.
Joe Barrett, co-founder and CEO of Applegreen, emphasized the company's commitment to expanding its presence in the UK market. The company plans to invest significantly in its Welcome Break business, which operates over 6,000 jobs across 59 sites. This includes the development of new locations and the revamping of existing ones. Applegreen is also poised to invest €85 million in its electric vehicle charging business over the next five years, reflecting a broader trend towards sustainability.
As the landscape shifts, housing and infrastructure emerge as critical areas for improving competitiveness in the Irish economy. A staggering 33% of businesses cite housing shortages as the biggest obstacle to growth, while 32% point to infrastructure challenges, particularly in transport and energy. These issues are like weeds in a garden, stifling potential growth.
The survey results paint a picture of a business landscape balancing optimism with pragmatism. While regulatory compliance, tax risks, and domestic barriers remain significant hurdles, businesses are increasingly focused on leveraging innovation and sustainability to secure their future. The adaptability and resilience of Irish businesses shine through, even in the face of uncertainty.
In conclusion, the outlook for Irish businesses in 2025 is a tapestry woven with threads of hope and caution. The challenges are real, but so is the determination to overcome them. As companies navigate the complexities of regulatory changes and external pressures, their focus on innovation and sustainability will be crucial. The road ahead may be fraught with obstacles, but the spirit of resilience is alive and well in Ireland's business community. The future, while uncertain, holds the promise of growth and opportunity.