Over half (57%) of Ireland’s leading companies expect to grow through international expansion, new Deloitte research finds.
The finding is included in a survey of 128 of the businesses involved in Ireland’s Best Managed Companies programme.
A total of 77% of respondents said they expected to grow their business in the next five years by developing new products and services. This was ahead of increasing headcount (63%) and mergers and acquisitions (56%). While 8% said they would use third party debt, just 2% said they would envision growth coming from an IPO.
In contrast to the overall insights, 92% of companies in the technology, media and telecommunications industry (TMT) said they will grow through international expansion over the next five years.
The adoption of sustainability technology is ranked ahead of artificial intelligence by the businesses surveyed when it comes to staying competitive with 64% listing the former among their priorities and 59% listing the latter. Automation was identified by 44%, but none of the businesses involved chose blockchain technology from the list of options.
When it comes to the increasing importance of sustainability, 12% said they were “very ready” to implement new reporting regulations and 33% said they were “ready”. A total of 50% said they were “somewhat ready” and 5% said they were “not ready”.
When asked to identify the sustainability measures they are already undertaking, over two-thirds (64%) said they tracked the success of their ESG policies, just over half (53%) said they reported carbon emissions and 52% said they had a sustainability manager in place. Over a third (34%) have availed of grants or schemes related to retrofitting and 46% have built targets into their business plans.
The survey also found that over two thirds of Irish companies believe talent retention to be a significant challenge they face in the coming year.
A total of 67% listed retaining staff as a potential obstacle, putting it ahead of supply chain disruption (listed by 37%), environment and sustainability challenges (30%), cybersecurity threats (26%) and access to capital (24%).
To attract and retain workers, 94% of the companies surveyed said they were using continued professional development opportunities and the same percentage said they were seeking to improve engagement between employees and management. 57% said they were increasing compensation with 83% listing an increased focus on flexibility and wellbeing programmes and over two-thirds (64%) listing additional workplace benefits, such as health insurance.
Brian Murphy, Lead Partner for Ireland’s Best Managed Companies Awards Programme, said: “We need to redouble efforts that will support indigenous Irish businesses, like Ireland’s Best Managed Companies, to continue to grow, scale and become the next generation of Irish success stories. Deloitte’s survey highlights that these businesses want to grow, but nearly a quarter (24%) cite interest rates and access to capital as a challenge.”
Murphy added: “The Deloitte survey of Best Managed Companies shows that there is a focus on the real-life applications and potential benefits of technology, while businesses continue to prepare for sustainability reporting regulations, in particular with the introduction of CSRD in Ireland.”
