Rising operating costs are the number one risk factor for Canadian multinational companies in Ireland, according to the Ireland Canada Business Association’s latest member sentiment survey.
Canadian companies employ over 15,000 people in Ireland directly and a further 12,000 indirectly, and include Irish Life, Air Canada, TD Bank, Irving Oil and Brookfield Asset Management.
When asked about the most significant risk factors for their business, the majority of respondents identified business operating costs and the cost of labour (90 per cent) as the top concern.
This was followed by staff recruitment (37 per cent), cost of raw materials (10 per cent ) and the contraction of the domestic market (10 per cent).
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Specific factors driving up costs for ICBA member companies include labour (63 per cent), energy (37 per cent), staff retention (32 per cent), regulatory compliance (26 per cent), rent (26 per cent) and insurance (21 per cent).
Despite concern about rising costs, most Canadian multinationals are continuing to invest in their workforce this year, with almost 80 per cent planning to increase wages and 50 per cent intending to hire more staff.
The majority of respondents are also investing in upskilling and wellbeing of their workforce.
In addition to rising costs, companies are also concerned about the introduction of new rules and regulations.
Just 52 per cent are ready for the introduction of pension auto-enrolment, which is expected to be introduced in January 2025, with one-third calling for a delayed start.
Just 25 per cent are ready for the introduction of CSRD legislation, which strengthens the rules around sustainability reporting for large companies and listed SMEs. The remaining 75 per cent of companies are either “not prepared” or “working on it”.
Connectivity and in-person communication are important factors for ICBA member companies, with 90 per cent reporting increased or similar levels of business travel in 2024.
Almost three-quarters of respondents do not support the capping of passenger numbers at Dublin airport, a move that threatens to negatively impact valuable tourism from Canada and ease of business travel.
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