Manufacturing & Supply Chain

Access to skilled staff, high energy and transport costs, and access to finance are the biggest risks identified by Irish SMEs in a new survey by the Strategic Banking Corporation of Ireland (SBCI), the State’s promotional financial institution. The SBCI has channelled over €4 billion in funding to over 60,000 Irish SMEs to date.

The survey also revealed a strong preference among Irish SMEs for green investments that reduce energy costs, such as solar panels and energy-efficient lighting. And it revealed stark changes in Irish SME trading patterns with Britain post-Brexit, with 61% of respondent SMEs saying they have reduced or even completely stopped using suppliers based in Britain – in contrast, 34% have reduced or stopped selling to Britain.

Key findings – risks to SMEs

• 59% of respondent SMEs say getting skilled workers is one of the biggest risks to their business right now
• 48% cite transport and energy costs as a risk to their business
• 44% say access to finance is a significant risk

Key findings – preferences for green investments

Of the SMEs that said they are planning a green investment over the next three years:

• 59% said they will invest in solar panels
• 46% say they plan to invest in lighting improvements that are more energy-efficient
• 42% say they will invest in Electric Vehicles
• Reducing electricity and heating costs is the number one priority for SMEs in making green investments, with 29% citing this reason
• 26% say their green investments are driven by a desire to play their part in reducing emissions; 16% say that they want to be more sustainable; 13% say their aim in making these investments is to improve their brand reputation and build customer loyalty

Key findings – Brexit impact on Irish SME trading patterns

• 61% of respondent SMEs have reduced or ceased using British-based suppliers (48% have reduced while 13% have stopped)
• 34% have reduced or ceased selling to customers in Britain (26% reduced, 8% stopped)
• 19% have increased their use of suppliers in other EU countries post-Brexit, while an additional 19% have started using EU-based suppliers for the first time
• Only 24% of Irish SMEs say that Brexit has had no impact on their relationship with British suppliers or customers

June Butler, Chief Executive of the SBCI, said: “Our survey has given us an insightful snapshot into the key risks that Irish SMEs are facing and their attitudes to investing in green technology and doing business in a more sustainable way. The SBCI has channelled over €4 billion in low-cost, flexible funding to over 60,000 Irish SMEs to date and we’re keen to make sure that our product range reflects what SMEs need and want.

We’ve developed tailored funding programmes to help SMEs invest in addressing the big risks they face and to give them a platform for growing, creating jobs and becoming more sustainable. We’ll continue to work closely with SMEs to give them even better financing options on their journey.”