Businesses believe Cork will not achieve Project Ireland 2040 targets due to lack of Funding, Cork C

-SMEs need further support measures in Budget 2025-

Cork Chamber, the voice of business in Cork, has published its latest Economic Trends survey, proudly sponsored by PTSB. The survey, capturing insights from Cork Chamber members for Q2 2024 and their outlook for Q3 2024, also reflects their sentiments and priorities ahead of Budget 2025.

Key Findings from the Q2 2024:

• Housing stimulus is the top business priority for Budget 2025.

• 82% of respondents call for increased Government investment in Cork to achieve Project Ireland 2040 targets.

• 78% want additional support measures for SMEs in Budget 2025.

• 93% express confidence in their own business's financial prospects.

The survey results emphasise that housing is the foremost business priority for Budget 2025, underscoring the need to address the housing crisis affecting Cork and Ireland at large. Cost of living measures and infrastructural investment closely follow in priority.

A significant 82% of business respondents highlight the necessity for enhanced government investment in Cork to meet Project Ireland 2040’s ambitious targets. This overwhelming majority emphasises the urgency to deliver strategic infrastructure and development projects to ensure Cork's continued growth, contribution to the national economy, and attractiveness to investors, talent, and visitors.

Rob Horgan, Cork Chamber President said, “Stimulating housing and apartment construction and introducing policies that encourage private investment back into the market must be a top priority in Budget 2025. However, over the last period we have seen progress in this space and construction on new apartment buildings has commenced across Cork City. This progress would not have otherwise happened without government intervention. Maintaining this momentum is crucial to address the housing shortage and support Cork's growing population. By continuing to prioritise investment in housing and infrastructure, we can ensure that Cork remains a vibrant, sustainable and competitive city, capable of meeting the targets set out in Project Ireland 2040.”

The survey also indicates a strong demand for additional support measures for SMEs, with 78% of respondents stating current government efforts are insufficient.

"The challenges faced by SMEs over the last year have been significant, including rising business costs, skills shortages, and housing availability issues for employees. SMEs are the backbone of the local economy, and enhanced support measures are deemed essential for their sustained growth and the overall competitiveness of Ireland,” said Mr. Horgan.

Businesses reported positive turnover and net profit growth in Q2 2024. The proportion of businesses reporting an increase in turnover rose to 51%, up from 42% in Q1, while those reporting net profit growth increased to 33%, up from 27%.
 
Auriol Kelly, Business Banking Manager at PTSB, commented on the findings, “These figures indicate a resilient business environment, despite ongoing economic uncertainties. At PTSB, we are committed to supporting businesses in Cork and across Ireland. The positive turnover and net profit growth highlight the strength and adaptability of our business community, and we remain dedicated to providing support and resources needed to help them thrive.”

Mr Horgan added, “Despite a downward trend in confidence in the broader Irish economy from 84% at the end of 2023 to 72% in Q2 2024, business confidence in their own financial prospects remains strong at 93%. It is vital that government support continues to sustain this positive momentum and drive further sustainable growth.”

Full results available on: https://www.corkchamber.ie/quarterly-economic-trends/