More than eight in 10 exporters plan to enter new international markets over the next 12 months despite ongoing challenges around the supply chain, inflation and energy costs, according to a survey of Enterprise Ireland client companies for International Markets Week.
Over a third of respondents (35%) cited global market and economic uncertainty as the primary challenge for their business for the next six months while 32% expressed concerns about supply chain, price inflation and energy costs, and a quarter (26%) cited talent shortages as the biggest challenge.
However, there was clear buoyancy about the future and strong optimism among respondents, with nine in 10 (91%) saying they expect exports to increase next year. Some 59% said export sales have increased this year, and 32% said they had remained stable.
“The business optimism is a credit to the innovation and flexibility of Irish exporters who have overcome a range of obstacles in recent times including, Brexit and Covid-19 and are now facing a range of trading challenges in response to the uncertainty surrounding the war in Ukraine," said Leo Clancy, CEO of Enterprise Ireland.
"It’s vital that the current inflationary pressures, especially increases in energy costs, don’t derail that recovery and we continue to support and grow employment opportunities across all regions.
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"Enterprise Ireland will continue to support our clients to deal with these issues. We have a core programme prepared aimed at addressing energy costs and we will continue to examine ways in which our efforts can help companies this winter and in subsequent years.”
Around 84% of client companies plan to enter new markets in 2023, and 62% of those state that increasing their overseas market presence is their biggest priority for the next 12 months.
Of those planning to enter new international markets next year, a third said North America is the priority market for them in 2023, with 27% prioritising Europe and one-in-five (19%) citing the UK.
Almost three-quarters of the businesses surveyed (74%) said that having green credentials with a sustainability policy in place is considered an important factor when competing to win new business overseas.
"I am very encouraged, despite the difficulties presented by Brexit, Covid-19 and most recently market instability and decreased consumer confidence, that Irish businesses are continuing to show strength, resilience and adaptability in looking for new opportunities to sell internationally," said Minister of State for Business, Employment and Retail Damien English.
"It has always been a priority of this Government to back Irish businesses and assist them through uncertain periods. I am pleased that the number of Enterprise Ireland companies entering new markets has increased and that companies remain positive and export-focused in a fast-changing world for the year ahead.
"International Markets Week provides an excellent opportunity for Irish companies to advance their ambition to expand, innovate and diversify their operations.”
Almost 600 client companies are set to take part in 1,800 export focused one-to-one engagements with Enterprise Ireland market advisors at International Markets Week (IMW).
Over 130 advisors from 40 Enterprise Ireland overseas offices are attending the annual exporting focused event, which returns in-person to the RDS this week until Saturday (15 October) for the first time since 2019.
Irish businesses at IMW can also visit Enterprise Ireland’s Global Ambition Hub, where they will have access to experts on issues such as sustainability, digitalisation, strategic partnerships, talent, growth capital and market intelligence.
“It’s positive to see from our research that Irish exporters are optimistic for the next 12 months and reported export increases last year against the backdrop of a challenging global economic environment for businesses," said Clancy.
"So far in 2022, we have seen our clients win a total of 882 new contracts and establish 325 overseas presences during challenging economic conditions, with support from Enterprise Ireland.
"In line with Enterprise Ireland’s strategy ‘Leading in a Changing World’, resilient and internationally focused Irish enterprises will be the core driver of the Irish economy and we at Enterprise Ireland are proud to support them in achieving their ambitions through these changing times."
(Pic: Getty Images)
