Chief executives at many of Ireland’s biggest companies are feeling increasingly confident about the economy and about prospects for their own businesses, according to a new study.
The latest PwC 2015 Pulse survey, which interviewed 229 chief executives across a number of industry sectors, found that 59 per cent of those surveyed plan to take on additional staff this year, the highest percentage recorded in 10 years. The study indicates that companies surveyed plan to create over 4,500 jobs collectively as skills shortages begin to impact on business growth.
According to the survey, 73 per cent of chief executives reported concern over skills shortages while 66 per cent said they expect increased competition from sectors other than their own, compared to 56 per cent of chief executives globally.
Notwithstanding these concerns, the majority of chief executives canvassed felt overwhelmingly optimistic about the future with 92 per cent expressing confidence in the economy and 82 per cent in their own business.
Nearly three-quarters of those interviewed said they anticipated growth in net profits over the next 12 months while planned capital investment by companies was at a ten year high.
Irish chief executives were seen to be more confident than their peers in other countries. For example, 82 per cent reported seeing more growth opportunities in their organisation today than three years ago, as against 61 per cent globally.
One in ten Irish chief executives also said they intended to venture into new markets in the next year.
The biggest challenges noted by business leaders were political changes, currency issues, rising labour costs and cyber threats.
Multinationals located here are not only planning to stay in Ireland but also to increase their investment here, according to the survey .
The study shows that 92 per cent of chief executives at multinationals with a presence in Ireland say their investment here has been a success. In addition, 49 per cent say they intend to invest more here, up from 37 per cent last year and from 34 per cent in 2013.
The research suggests that Irish companies have some way to go to recognise the value from digital technologies compared to their overseas counterparts however. Two-thirds of Irish chief executives said they are achieving operational efficiencies from such technologies, compared to well over three-quarters globally.
"The survey upholds the view that Irish business leaders recognise the strategic importance of investing in new technologies, developing digital offerings and monetising the value of big data. As an economy, however, the survey also suggests that we are lagging our global counterparts in terms of realising the full benefits from such investments and highlights that there are further opportunities that have yet to be tapped," said Ciaran Kelly, PwC advisory leader.
A separate study by KPMG published yesterday shows 80 per cent of chief executives globally expect to increase recruitment over the next three years.
According to the 2015 KPMG CEO Outlook Study of more than 12,00 chief executives, European business leaders are most optimistic about the economy with 69 per cent of them expressing confidence, versus 66 per cent in Asia Pacific and 52 per cent in the US.
The study finds that chief executives across the globe are also facing increasing pressures with 86 per cent expressing concern about customer loyalty, 68 per cent worried about losing business to rival firms and 66 unsure about the relevance of their product or service in the coming years.
