The majority of companies in Northern Ireland expect their businesses to grow in the coming year, but will face difficulties sourcing staff.
Those are the findings from the latest Quarterly Economic Survey from BDO and the Northern Ireland Chamber of Commerce and Industry which found a buoyant mood in the local business community, only soured by growing difficulties in sourcing talent and a continued hike in prices.
More than three quarters of the business body’s members who were surveyed said they expect their business to grow in 2022 while 86% are already facing recruitment difficulties.
The findings reflect growing evidence which shows a growing talent crisis in all sectors, which has only intensified as the Covid-19 pandemic has dragged on.
Overall, expectations to raise prices are the highest since the survey’s records began in 2008. Adding to that, price rises are also increasing pressure across the board, particularly for manufacturers. The survey showed 93% of manufacturers are currently experiencing pressure from rising raw material costs.
Despite those headwinds, the economic outlook has been more positive than has been the case for a number of years.
A total of 58% of those surveyed expect the Northern Ireland economy to grow in 2022, up from 19% in 2021.
“It is encouraging to see that confidence is keeping up in spite of challenges, particularly around pressure to raise prices,” Ann McGregor, Chief Executive, NI Chamber said. “These quarterly economic survey results indicate that there is much to be optimistic about at the beginning of this New Year. However, while there are many positives, we must also be realistic about the fact that multiple, serious challenges persist.
“We know from members that inflationary pressures are very acute at the moment. Rising raw material costs are significant, particularly for manufacturers, driven by factors including COVID-19, supply chain disruption and EU exit. There also appears to be growing pressure on businesses to raise wages.”
