Cork firms say turnover up, but 60% resist staff pay hikes
These are among the findings of the Chamber’s third quarterly economic trends survey this year, which is released this morning.
The survey, conducted during October, and reviewing activity over July, August, and September, found that 94% of respondents are positive about the future of their business.
This high confidence level amongst the surveyed businesses of various sizes and in several sectors mirrors the results of the survey conducted during the second quarter of this year.
The latest survey noted an increase in turnover for 58% of member businesses during the third quarter.
However, there was a drop of 5% since the second quarter in the numbers reporting an increase to the net profit margin.
Cork Chamber CEO Conor Healy said that slight decrease may be indicative of fluctuations in the cost of doing business in light of uncertainty with our UK trading neighbour.
The survey found 62% of surveyed businesses held employee numbers static - an increase on the 57% figure reported for the second quarter, reflecting stability within the business community.
The survey also found that 40% predict an increase in staff numbers with 55% predicting that their numbers will remain static.
“Again, this is a strong indication of confidence within the business community and represents healthy employment opportunities and capacity into the future,” Mr Healy said.
In the wake of the budget’s 10c increase in the minimum wage — from €9.15 to €9.25 per hour from January — businesses were asked to share their opinions on the proposed adoption of a living wage — which has been suggested at €11.50 per hour. 48%, were not in favour of the living wage.
Companies were also asked to rank the top five threats to business growth over the remainder of the year. They ranked competitiveness as the most resounding concern, followed by the fallout from Brexit, skills availability, cash-flow and stability of capital markets.
Meanwhile, the chamber, which represents the interests of approximately 1,100 businesses employing more than 100,000 people in the region, is preparing to fight a proposed hike in Cork city’s commercial rates. City Hall has proposed a 2.9% increase to plug a funding shortfall.
