Business landscape becoming 'increasingly competitive', new report reveals

The business landscape is becoming increasingly competitive, according to a new report by the cross-border body InterTradeIreland.

Its latest business monitor for the period from July to September reveals that 61% of companies are in a stable condition, while 70% are profitable.

However, the volume of business growth mode has fallen to 29% from 36% in the previous three month period.

Today's report states that this slight drop, along with other issues, suggests that companies are increasingly aware of tighter market conditions.

25% of the 750 companies surveyed said that new entrants to the market present a challenge for their business, while a fifth said discounting by rivals and late payments from customers are a concern.

Energy bills and the rising cost of overheads remain the top concerns for companies, but both of these issues have dropped in importance since the same time last year.

"Our data indicates that business owners are now becoming more focused on issues other than costs," said Martin Robinson, InterTradeIreland's Director of Strategy.

"Without reading too much into one quarter of data, it's notable that new competitors is such an issue currently, when it has barely featured on the radar of most businesses previously.

"It’s important for firms to remember that they can take action to increase their competitiveness by investing in innovation and taking advantage of new trade opportunities," he added.

InterTradeIreland's latest report also reveals that a third of firms have adapted to the new trading conditions post-Brexit, while half say Brexit has had no impact to date.

However, 71% of companies said they do not yet have knowledge of the Windsor Framework requirements.

At a sectoral level, 63% of manufacturing businesses said they have not investigated the impact of the new agreement.

The report states that this highlights a growing need for "clear and reliable information" on emerging trading conditions.

"With elements of the Windsor Framework now starting to take effect, it's an important time for individual firms to explore what it means for them," Mr Robinson said.

"This doesn't have to be a hugely daunting task for firms to take on alone.

"Our new Cross-Border Trade Hub is a vital resource for SMEs who want to know more about customs, VAT, regulation, and cross-border employment," he added.