A new survey focused on business planning has revealed that nearly half of Irish businesses plan to significantly increase capital investment in 2025 as they navigate heightened volatility.
The survey from Azets Ireland, a professional services firm specialising in supporting the needs of mid-market, family-owned businesses, polled 136 firms across Ireland.
It found that 48 per cent plan to increase investment in capital projects – higher than the 37 per cent of businesses in the UK.
The survey also revealed that Irish businesses have the highest levels of intended investment in Northern Europe, with plans to increase capital expenditure by an average of 22.8 per cent over the next 12 months, compared to 10.3 per cent in Sweden, 9.4 per cent in Denmark, and 8.4 per cent in Norway.
Findings show that firms in the construction sector (29.6 per cent) have the highest forecasted increase in investment, closely followed by businesses in the manufacturing sector (27.5 per cent).
Small and mid-sized businesses report strong increases in intended investment, with capital expenditure rising by 28.8 per cent among small businesses and 28.3 per cent among mid-sized firms.
Overall, more than six in 10 (63 per cent) of small businesses and 51 per cent of mid-sized businesses plan on increasing investment in 2025.
The survey reveals that 49 per cent of businesses are already using AI as part of everyday operations, as investment in AI and digital transformation accelerates.
However, 28 per cent of Irish firms report that they have not yet adopted AI within the business, while 22 per cent of firms are researching the technology but have not implemented it widely within their operations.
According to the survey, Irish firms are well ahead of Northern European peers in terms of succession planning, scoring 6.2 out of 10.
This is significantly above the 5.2 average across Denmark, Finland, Norway, Sweden, and the UK.
Notably, mid-sized (7.3) and small (6.5) firms buck the typical correlation between size and succession planning maturity and outperform larger and international peers.
This maturity in succession planning among small and mid-sized businesses may indicate more leaders in these cohorts are considering business exit strategies this year.
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Chief executive of Azets Ireland, Neil Hughes, said: “The findings of our latest survey highlight the ambition of Irish businesses, particularly in the face of ongoing global economic volatility.
“The strong levels of planned investment, particularly in sectors like construction and manufacturing, underscore the determination of medium-sized firms to be the engines of economic growth. Irish businesses are leading Northern Europe in planned capital investment, enabling them to navigate challenges from AI transformation to a tight labour market.”
“Findings show that succession planning is top of mind for many Irish business leaders planning for the future, particularly among small and mid-sized businesses.
“With changes in tax relief around the inheritance of family businesses and a new protectionist trading environment on the horizon, more leaders may now be considering whether it’s the right time for sale or succession of their business.”
Sourse: breakingnews.ie
