Third of Irish business leaders expect growth in 2010

PwC’s Business Sentiment Snapshot Survey was carried out at the firm’s annual client conference earlier this week and took soundings from over 800 leading executives from Ireland’s top companies.

However, despite the optimistic notes of recovery being sounded by Irish business leaders, the survey revealed some retrenchment is still ongoing with over half still looking at workforce reshaping and reduction.

The survey also revealed that the readjustment of wages is still continuing, with 45pc of survey respondents looking to review basic salary levels.

Long-term term objectives are also at the top of business leaders’ minds, with many looking at new markets and seeking strategic alliances, while a third are looking to wind down or dispose of underperforming/non-core operations.

Interestingly, 20pc of respondents said they are looking to centralise further activities into Ireland.

Financial services firms more optimistic about growth
The survey also turned up notable differences between financial services organisations and non-financial service organisations.

Financial services organisations are more positive as to when growth would return to their businesses, with 41pc of financial services companies saying growth would return in 2010, compared to 22pc for non-financial services organisations. 

Concerns over staff salaries were also less of a worry for financial services firms, the survey showed, with reviewing basic salary against the market less on the radar screen for those organisations. Just over a third (37pc) of financial firms were looking at this area compared to over half (52pc) for non-financial services organisations.

However, financial services organisations are more focused on winding down or disposing of underperforming/non-core operations, the survey showed. More than a third (36pc) said this area was under the spotlight, compared to only a quarter (23pc) of the non-financial services companies.

Bracing for the upturn
“The survey suggests that companies are looking beyond the short-term and clearly identifying how they can better position themselves for the upturn,” said Kevin Egan, Leader, PwC Assurance Practice.

“While retrenchment is ongoing in some areas and companies continue to tackle their cost base, many are now looking at new markets and alliances to grow the revenue line. In addition, with some disposal of non-core operations planned, there should be opportunities to purchase competitively priced assets.

“Although there has been a lot of pain, the survey suggests that 2010 and 2011 should see an Ireland that is more competitive and better positioned to compete for foreign direct investment,” Egan added.
    
Pictured launching the PricewaterhouseCoopers Business Sentiment Survey at the annual PwC Client Conference 'What next for Ireland' were (from left): Lochlann Quinn, Chairman, ESB; Kevin Egan, Lead Partner, PwC Assurance Practice; and Jim Power, Chief Economist, Friends First Group