Sharp decline in profit expectations and triple-digit energy price hikes make for sombre summer – Dublin Chamber survey

+Dublin businesses have seen dramatic increases in their energy bills, some as high as 121%.

+Precipitous decline in economic outlook, with fall in expectations of future profits 

Monday 25^th July 2022: Amid supply chain disruption, energy price hikes, cyber vulnerabilities, and recruitment frustrations, the economic outlook for Dublin firms has fallen sharply. The Q2 Profit Expectations Index has fallen from +32 in Q1 2022 to +4 in Q2 2022, indicating a precipitous decline in the number of firms expecting their profits to grow in the next three months. Whilst four out of every five Dublin firms expect revenues to rise, this is matched by an equal number predicting higher operating costs. This indicates that companies will be hard pressed to pass on their rising costs to customers due to competitive pressures. 

Energy

Dublin businesses have seen dramatic increases in their energy bills over the past year, some as high as 121%. Almost three in five Dublin businesses (58%) have experienced an increase of up to 20%, while a further one in eight firms (12%) were subject to increases between 40% and 60%.  

Dublin Chamber’s Director of Public & International Affairs, Aebhric Mc Gibney, said: “Despite the rising cost of energy, just under two thirds of firms (62%) reported that they had not implemented any energy-saving practices within the last three months. When asked about this, the most common answer was that ‘All possible energy-saving measures have already been implemented’. Lack of time and knowledge were the next most frequent responses.” 

“It is worrying to think that many firms believe there are no further changes they can make to reduce energy costs. For many smaller businesses that share office space, it is rare to have sight or control of energy efficiency in their building, which limits their ability to introduce reforms.” 

“Equally worrying is the challenge businesses face in knowing what measures to take and finding the time to implement them. Although Government grant schemes are heavily promoted, many companies are stumped by the complexity and ‘red tape’ to access them. State schemes and grants must be simplified for companies as a critical step toward a sustainable economy and to support businesses. In addition, a ‘Going Green’ tax credit should be adopted, modelled on the R&D tax credit, to stimulate green investment and support businesses in their green transition.” 

-ENDS-

Click here to access the report.

Note to Editors: Dublin Chamber’s Q2 2022 Business Outlook Survey is based on responses received from Dublin Chamber members spread across the Greater Dublin Area. The ‘In Focus’ section of the final report contains critical insights into live issues affecting Dublin businesses, such as security and childcare, 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 | orla@dublinchamber.ie