Businesses engaging in cross-border trade are outperforming those that do not, according to the latest data from InterTradeIreland. The all-island business monitor reveals that over 40% of cross-border traders are experiencing growth, compared to just 26% of firms without cross-border sales.
These companies also reported stronger sales growth and higher profit margins. Specifically, 32% of cross-border traders reported profit margins exceeding 10%, whereas only 21% of non-cross-border traders reached the same profit level.
Ireland Minister for Enterprise, Trade, and Employment, Peter Burke, emphasised the benefits highlighted by the report, noting that cross-border trade in goods alone was valued at €10.1 billion in 2023. Burke encouraged businesses to build supply chains within the island, citing their long-term value.
The survey also found that one in ten businesses are facing difficulties sourcing some products or services. Notably, 40% of these businesses are aware that these products are available on the island, indicating a significant market opportunity.
Martin Robinson, InterTradeIreland’s Director of Strategy, discussed these findings on Morning Ireland, pointing out that the pharmaceutical and food and drink sectors are particularly impacted by sourcing issues.
Despite easing headline inflation in both jurisdictions, costs remain a major concern for businesses, with energy bills, supplies, and wages being the most significant factors. Robinson highlighted the tight labour market, which is driving up wages and presenting recruitment challenges.
The report shows that 40% of businesses have adjusted to post-Brexit trading arrangements, which Robinson finds encouraging. Regarding sustainability and net zero, 59% of companies consider it a policy priority, but only 19% have a plan in place, and 12% are developing one.
InterTradeIreland and partner agencies are poised to help businesses innovate and adopt technology and automation to overcome skills challenges and enhance productivity, according to Robinson. This support is crucial as companies navigate the evolving economic landscape and strive for sustainable growth.
