Irish firms expect rise in export turnover within three years

A Deloitte survey of Irish firms has revealed that 47pc of respondents expect more than 50pc of their turnover to come from overseas markets in three years’ time.

The UK was the most popular in terms of countries companies were more likely to expand into, identified by 76pc of respondents.

It was followed by Germany (35pc), France (24pc) and the US (21pc). Other countries that are considered attractive for expansion opportunities include China, The Netherlands, Poland and Spain.

The main reasons identified for expanding overseas include the ability to increase or maintain sales (91pc); the high level of competition in the Irish marketplace (29pc); and the absence of a similar product or service in overseas markets (12pc).

“It’s very encouraging that so many indigenous Irish companies are looking at how they can grow their businesses abroad. While this is no doubt a reaction to the weakened demand in the local marketplace, it also shows that many Irish companies have the foresight and agility to adapt to the changing global marketplace in order to not only survive but also grow their business,” said Pádraig Cronin, head of tax and legal services at Deloitte commented:

A lack of access to financing came out as the major deterrent to expanding overseas (identified by 44pc of respondents), followed by lack of international expertise within the business (31pc).
Overseas obstacles

The survey also looked at the obstacles which companies experience upon entering overseas markets. Nearly half (47pc) highlighted that it was difficult to establish the level of competition in the market, while a third indicated that encouraging employees to relocate overseas, in addition to sourcing employees overseas, was troublesome.

“The people challenges highlight the need for companies to be able to access a national skills register to enhance their ability to source appropriate talent.  In addition, our tax system could be amended to incentivise people to work abroad for Irish companies, by giving them a tax rebate in respect of days worked abroad,” Cronin commented.

Story adapted from bizstartup.ie