Almost half of Irish business plan to increase investment capital projects this year, new data shows.
This is higher than UK firms, with just 37% planning to invest.
The survey carried out by professional services firm Azets Ireland reveals that Irish companies have the highest level of intended investment in Northern Europe.
Irish firms plan to increase capital expenditure by an average of just under 23% in the next 12 months, compared to just over 10% in Sweden, 9.4% in Denmark and 8.4% in Norway.
The findings show that strong levels of investment are planned across the construction and manufacturing sector in particular.
Meanwhile, small and mid-sized firms look set to lead the way, with both groups planning to increase capital expenditure by over 28%.
Overall, 63% of small businesses and 51% of mid-sized businesses plan to increase investment in 2025.
According to the survey, Irish firms are well ahead of Northern European peers in terms of succession planning, scoring 6.2 out of 10.
This is significantly above the 5.2 average across Denmark, Finland, Norway, Sweden and the UK.
“With changes in tax relief around the inheritance of family businesses and a new protectionist trading environment on the horizon, more leaders may now be considering whether it’s the right time for sale or succession of their business,” said Neil Hughes CEO of Azets Ireland.
With a heightened risk of disruption to Ireland’s economic model in 2025 due to a shifting international trading environment, the findings reveal that Irish firms have the longest average cashflow forecasting window of the six countries surveyed at 11.1 months.
Mr Hughes said an uncertain path lies ahead.
“Leaders will need to continually review their plans for the future as they navigate rising international trade barriers and a challenging operating environment in the months ahead,” he added.
Article Source – Half of Irish firms plan to increase investment in 2025 – RTE
