Confidence in the logistics sector of the Irish economy, which covers everything from freight transport to distribution and other supply chain operations, has risen significantly in the past year in tandem with recovery in the wider economy.

According to a survey by commercial property experts CBRE, almost three-quarters of respondents said they were more confident about business conditions than they were 12 months ago.

The study of 50 key decision-makers in the sector, conducted by specialist research agency Analytiqa, found nearly 90 per cent of respondents expected turnover to increase over the next year, while 62 per cent expected an improvement in profitability.

Only 8 per cent of respondents predicted a decline in profitability in their organisations.

Significantly, 55 per cent of respondents said they expected to increase staff numbers in the coming 12 months.

When asked about investment needed to facilitate improvements in supply chain operations, the items that ranked highest included investment in road infrastructure, investment in training and continuous professional development, investment in broadband and investment in sea and port infrastructure.

Over 85 per cent of respondents plan to introduce some form of innovation in their businesses over the next 12 months, with a fifth of respondents mentioning implementing more automation.

“We’re delighted to be publishing the inaugural annual confidence index for such an important sector as logistics and supply chain, which forms the backbone of the Irish economy, both north and south of the Border,” Garrett McClean, head of industrial and logistics at CBRE said.

“The report provides a comprehensive insight into current and emerging trends, given the high calibre of the respondents.

“I’m also encouraged by the high confidence levels and the positive outlook for the next 12 months, although Brexit remains the big uncertainty on the immediate horizon,” he said.