Three in ten expect lower profits over the next three years as a result of Brexit
- 95% of Irish CEOs think a ‘no deal’ Brexit would have a negative impact on the economy and 59% think it would have a negative impact on their business
- 84% of respondents reported that they had plans to expand their business overseas in the next year
Deloitte and Enterprise Ireland have recently published the results of their joint CEO survey on the impact of Brexit. Almost seven in ten (68%) Irish CEOs have said they have acted to mitigate against the potential impact of Brexit, according to a survey of Irish business leaders issued on 22 November by Deloitte and Enterprise Ireland ahead of the CEO Forum. The main areas of mitigation action included scenario planning, changes to supply chain and engaging with government and other agencies.
95% of Irish CEOs have said a ‘no deal’ Brexit would have a negative impact on the economy and 59% think it would have a negative impact on their business. Furthermore, 45% said delays in the Brexit deal decision making process were negatively impacting business operations.
Four in ten (44%) said that Brexit had impacted their business over the past 18 months, while almost six in ten (56%) said it had not impacted. Of those who said it had an impact the majority cited a negative impact.
When asked what impact Brexit would have on their business over the next three years three in ten (31%) reported that they thought they would have lower profits, while 10% thought they would have slightly higher or higher profits. A third (34%) reported a negligible change and a quarter (25%) said they did not know or that it was not applicable.
Nine in ten (93%) Irish CEOs said they are confident about their companies’ prospects for revenue growth in the next year.
Eight in ten (84%) Irish CEOs are planning to expand over the next 12 months. The Eurozone (27%), UK (21%) and North America (20%) were considered the top ‘new markets’ to offer opportunity to grow exports. When asked to identify the markets/countries, within the Eurozone, that offer the most potential/opportunities for their business, respondents listed Germany, France and The Netherlands as the top three.
The top challenges cited by CEOs included availability of skills, retention of talent and competitiveness.
Nine in ten (92%) are concerned that macro-economic issues would impact Ireland’s competitiveness and the top concerns were Brexit, US tax reform, currency fluctuations and Irish tax.
The Deloitte/Enterprise Ireland CEO survey was conducted over a period of six weeks with over 90 CEOs responding. The respondents included CEOs from a mix of private/public companies which range in size from SMEs to large plcs and MNCs.