By Chamber Press Office, 29 November 2022
PRESS RELEASE & BUSINESS OUTLOOK SURVEY REPORT
Four in every five Dublin businesses concerned by the potential of power outages over the winter months – Dublin Chamber survey
+Profit Expectations Index stands at a meagre (+)1 while Operating Costs Expectations Index stands in stark contrast at (+)94
+Affordable housing named as one of Dublin's top business challenges
Tuesday 29th November 2022: Energy remains a top consideration for Dublin businesses, with 78% of firms expressing concern for the potential of power outages over the winter months. Reduced productivity, a loss of sales and reputational damage have been voted as the most commonly feared consequences if this were to happen.
A number of Dublin firms have stated that power outages would mean a “total inability to function” and for some, “increased carbon emissions due to dependence on generators”. When Dublin businesses were asked whether they could reduce their energy usage between peak hours (5–7pm) to lessen pressure on the grid, 57% said that they could, but as some noted “not without significant investment”.
Dublin Chamber believes a “going green” tax credit is required, along the lines of the R&D tax credit to help firms tackle the high levels of upfront capital investment and long payback periods required to reduce energy consumption.
In addition to these energy concerns, Dublin firms rank affordable housing, skills and labour shortages, and business cost and competitiveness as the most difficult challenges currently facing their business. Housing, and the consequent impact on labour supply is the most pressing concern.
Dublin Chamber’s Director of Public and International Affairs, Aebhric Mc Gibney said “We’re hearing from Dublin firms that housing is an issue in a league of its own, outpacing other current adversities significantly. This is partly due to its direct impact on the tightening labour market, as it squeezes potential hires out of the Greater Dublin Area due to the lack of affordable housing within a reasonable commuting distance.”
“We have, in our outreach to Dublin’s 45 TDs, been consistently calling for the full implementation of the Government’s Housing for All strategy and even for these plans to be exceeded. Housing must be built where it is needed, in the Greater Dublin Area. A review of planning legislation was due by September, but we have yet to set eyes on it. Planning reform is required to ensure that the planning system is as lean and as efficient as possible”.
“Energy capacity and security is vital to the continued prosperity and growth of Dublin. Capital investment in upgrading infrastructure, expanding capacity and ensuring security of supply will need to be supported by Government.”
While more than half of Dublin businesses (55%) expect revenues to rise in Q4, 2022, expected profit trends signal cause for concern. Dublin Chamber’s Profit Expectations Index stands at (+)1, the lowest figure to appear on the index since 2020. In stark contrast, the Operating Costs Expectations Index stands at (+)94, an increase of 13 points since Q2, 2022.
The Price Expectations Index continues to stand at the same figure from Q2, 2022, (+)60, indicating that the pressure to pass on rising business costs to customers from previous quarters has not waned.
Mr McGibney said “As 2022 draws to a close, Dublin firms continue to face challenges that are likely to spill into 2023. Inflation, the energy crisis, affordable housing, skills and labour shortages continue to test the resilience and innovation of Dublin firms, that are still recovering from the impact of Covid-19. Despite these challenges, 2023 will no doubt offer opportunities for businesses to grow and evolve in equal measure. Dublin Chamber looks forward to supporting businesses in availing of these opportunities, while continuing its mission of helping businesses succeed in a successful Dublin.”
Click here to access the report for preview purposes only.
Note to Editors: Dublin Chamber’s Q3 2022 Business Outlook Survey is based on responses received from Dublin Chamber members spread across the Greater Dublin Area. The ‘Round Up’ section of the final report contains critical insights into live issues affecting Dublin businesses based on recent focus groups with Dublin Chamber members. The Profit Expectations Index measures the net number of firms expecting a rise in profits in the next three months. A number of 0 indicates that an equal number of firms expect their profits to increase and decline.
Dublin Chamber is Ireland’s largest chamber of commerce with over 1,300 member companies. It is the most broadly-based business group in the Greater Dublin Area, providing representation and networking services. Its policy work focuses on developing the Dublin region’s infrastructure & transport, promoting competitiveness & sustainability, and improving local governance. Dublin Chamber is also one of the oldest chambers of commerce in the world, tracing its origins back to 1782.
For further information, please contact:
Órla Mannion | Senior Public Affairs Executive | Dublin Chamber | email@example.com