Irish economy - are there clouds ahead?


Some 63pc of Irish companies confess that they are mature or declining businesses, compared with a global average of 37pc, a new survey from Sage has found.
Alarmingly, 44pc of Irish businesses expect to see either no change or a decline in their turnover in the next 12 months.

According to the research, commissioned by Sage and conducted by independent research firm Vanson Bourne on 800 small and medium-sized companies, over half of Irish companies have no plans to move their business to the next stage of growth. This is compared with a global average of 44pc.

While Irish businesses may be lagging behind with regard to business planning and lifecycle management, they are leading the way when thinking about their exit strategies, with 54pc of those respondents who stated they had a stake in their business actually had an exit strategy in place.
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The fact that Irish businesses have concentrated their efforts on exit strategies rather than business development speaks volumes.

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Duplex said:


The fact that Irish businesses have concentrated their efforts on exit strategies rather than business development speaks volumes.

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Wonder why Sage, a Uk company, commissioned the report?

Sage entered the Irish market by buying an indigenous software firm, so the Irish firm's exit facilitated Sage's entry.

And if the same people are employed and the same customers are provided with the product, why should it matter whether it is an Irish company or not?
 
I wonder what the 1000s of foreigners who might well be turfed out of their digs at short notice by a landlord who is rushing to sell the place will think of Ireland now?
Probably as miffed as the rest of us but much more willing to up sticks...I've never been bearish about the Irish economy before...doesn't feel nice
 
dontaskme said:
Wonder why Sage, a Uk company, commissioned the report?

Sage entered the Irish market by buying an indigenous software firm, so the Irish firm's exit facilitated Sage's entry.

And if the same people are employed and the same customers are provided with the product, why should it matter whether it is an Irish company or not?
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That "report" is pure selling by fear. If your business is in trouble CRM software isn't going to save you...
 
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Maine said:
http://www.timesonline.co.uk/newspaper/0,,176-2404010,00.html

This article is basically about how the UK were lucky to avoid euro.

Author ( main economics writer, usually reasonably balanced) thinks that euro will not be around in its current format in 10 years.
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This author is definetly not an EU basher or Euro basher. He wrote in a recent article how the German economy is probably based on stronger fundamentals than the UK economy despite the low consumer spend in Germany and all the confidence in the UK. He suggested that UK economists or politicians shouldn't be lecturing the Germans as things will look quite different in five or ten years.

I find it ironic that people are saying the Euro was bad for Ireland and Spain (which are currently still, just about, booming) but good for Germany (where at least the public thinks that the economy is in a poor state).

Personally I like the idea of the Euro, but with hindsight think it may have been a mistake for Ireland to join without the UK.
 
Go figure.


The Irish Independent also reports that growing interest rates and inflation have put Irish consumers under increased pressure when dealing with their personal debt.

According to new figures from the ESB's customer supply sector, the department's monthly debt levels have increased by 40pc in the past two years.
The ESB said that in the two years the average value of customers' arrears has grown from €180 to almost €250.

According to a spokesperson for the ESB, two years ago about 62pc, or 1.7m, domestic customers paid their bills within the agreed credit term of 14 days. Today, however, that figure has dropped to between 20pc and 52pc of domestic customers.

According to NCB Stockbroker's weekly economic commentary non-mortgage debt is currently growing at over 32pc, compared with just over 7pc three years ago.
The broker said that €16bn, or 7pc, of total lending was probably unsecured personal debt, while €2.3bn was credit card debt.

While credit card debt was up 18pc in the year to June 2006, credit card usage per holder is probably increasing.
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http://www.finfacts.com/irelandbusinessnews/publish/article_10007751.shtml
 
Sage own 3 CRM products so it's not that surprising they are saying people need CRM. They current own:

Sales Logix
ACT!
Sage CRM

All CRM Products!
 
Per goodbodys report the Govt expects to be in surplus by 1%.

Given the property and related tax receipts boom, SSIA spending, windfall gains by the govt on disposal of property, full employment, strong corporate profits and strong global economy that is some achievement. A 1% surplus.

Any guess as to what the number will look like when the going merely returns to good !! Out on the horizon IMO there are definitely tax increases along with the clouds
 
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St Vincent de Paul warns over credit card debt
http://www.rte.ie/news/2006/1023/credit.html


.............He told reporters in Dublin that he was quite alarmed at the level of debt among more than 10,000 people who approached the State's confidential Money Advice and Budgeting Service this year....



Ten Thousand ! How many are there really out there !

There maybe be trouble ahead ...
 
Have to laugh at the reports from banks claiming we are one of richest nations on earth as our properties are "valued" at 700billion etc. Do we really think that Ireland after approx 20 years of positive economic growth are anywhere as rich a nation (on per capita basis) as germany or england who have centuries of mainly positive economic growth? We have as a nation a highly overvalued property portfolio considering we have loads of land to develop upon(one of least urbanised countries in europe). We have a stagnant productive sector.
The infrastructure and public services of a country contribute to its wealth and make its citizens rich in broader sense. We have generally crap infrastructure and public services.
Our gdp/gnp appears on the face of it impressive at present but we are over reliant on construction, foreign multinationals(attracted by low tax etc but other cheaper countries are copying us ) and public sector. Theres no guaruntees these areas will remain strong in the future and its likely that multinational and construction sector will decline significantly over next decade or two.
The likes of UK and German economy are world leaders in many industries and have more diversified economies plus large element of control over their monetary policy. Which countries citizens would you think will be more comfortable/rich in the decades to come? flash in the pan ireland? or long term sensible. sustainable, industrious, productive, entrepreneurial economies like Germany UK and USA????
 
bearishbull said:
Do we really think that Ireland after approx 20 years of positive economic growth are anywhere as rich a nation (on per capita basis) as germany or england who have centuries of mainly positive economic growth?
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20 years positive economic growth?? more like 11 or 12....
 
The "value of 700 billion" was IMO a sales pitch for the banks who are lending cash to AIB and the other banks.

IMO as our debt to income ratio now starts to look scary on international comparisons then another more comforting ratio is required.
 
Maine said:
The "value of 700 billion" was IMO a sales pitch for the banks who are lending cash to AIB and the other banks.

IMO as our debt to income ratio now starts to look scary on international comparisons then another more comforting ratio is required.
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It's like the couple who can't afford to pay the ESB bill because their mortgage is so huge taking comfort from the fact that their house is worth twice what they paid for it.... might sound great, but bugger all use when it comes to actually paying the bills!
 
The increase in rents will negatively impact the irish economy as younger / low paid workers will see their after rent income decline.

This probably means higher wages will be needed to retain these staff or at the margin the flow of immigrants will decline.

The over supply of housing has depressed rents and rental yields and thus subsidised renters. This kept renters post housing costs income higher. As rents now jump this will force renters to seek higher wages and could push inflation up even further across a number of service industries.

Does this hold....
 
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