Majority Of Kildare Businesses "Extremely Concerned"About The Impact Of The War

The survey was carried out by the County Kildare Chamber.

Some 88% businesses are concerned or extremely concerned with the effects of the war in Ukraine on their operations and profitability, according to the biannual County Kildare Chamber Membership Pulse Survey.

The survey found concern with challenges arising from remote and flexible working as well as the possible impacts and effects of the current crisis situation in Ukraine.

There was high levels of uncertainty surrounding Ireland’s fiscal outlook for the coming year and the knock on effects of the war currently being seen in fuel and energy costs as well as rising inflation also playing a part.

The economic business sentiment survey was taken since the outset of war in Ukraine of 207 businesses employing 28,000 employees.

The survey results also showed that reducing costs is a big challenge facing businesses with 23% of firms concerned about this with current rising inflation due to the ongoing as a result of the Russian invasion. 

It found that 40% of businesses are worried about the provision of housing for their employees with 15% citing public transport as not being adequate enough to serve the population.

The survey by the Chamber which is the largest business organisation in the mid-east region of Ireland representing an employer base of 400 businesses and over 38,000 employees across the county found that there is still a substantial hangover from the Covid 19 pandemic along with ongoing effects of Brexit creating several very challenging years for businesses.

Some 51% of businesses said staff retention & recruitment is the biggest challenge facing them. We are living through the age of the Great Resignation.

According to the US Bureau of Labour Statistics, the months of April to June 2021 saw 11.5 million employees quit their jobs, and this trend is being replicated around the world including in Kildare.

When it came to staff recruitment and retention, the survey found almost 60% of businesses stated staff turnover had been an issue within the last year.

Some 50% of businesses stating competitive salary was a key incentive in attracting new employees.

Positive work culture as a tool for recruiting and retaining staff also scored  along with flexible and remote working.

The survey found that the majority of Kildare businesses are optimistic about their outlook with 57% hoping to increase staffing levels, 60% forecasting an increase in revenue and 45% anticipating an increase in profits perhaps showing an increasing resilience and ability to cope with economic adversity.

Chamber CEO Allan Shine commented: “ Kildare has shown itself to be one of the key engine rooms of the Irish economy as in the last two months alone Intel has announced 1,600 jobs with a further €12 billion being invested in their Leixlip plant up to the end of 2023.

"In the last week the Kildare Innovation Campus announced 140 new jobs – 40 with Nikon Precision Europe and 100 with MGS Manufacturing LTD who themselves are also investing €7 million in a 20,000ft extension to the plant on campus.

"However to note a sound of caution regarding the ongoing war in Ukraine with the resultant rampant inflation which will affect competitiveness on our island we need Government to act smartly and look at various tax incentives and grant funding for business- particularly around offsetting energy costs for businesses and the immediate expansion of work permits to enable businesses to recruit in countries outside of Europe to offset the huge skill shortages our members are facing at present across all sectors of industry," he concluded.