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UK firms could start moving to Ireland in second quarter

Companies considering quitting Britain due to its departure from the EU are likely to start making investment decisions from the second quarter, the head of the agency competing to win foreign business for Ireland said on Tuesday.

Industrial Development Agency Ireland has already fielded Brexit-related enquiries from more than 100 firms, a lot of which have progressed to site visits, its chief executive Martin Shannahan also said at a news conference.

Given the countries’ close trading links, Ireland is widely considered the European Union economy most at risk from Britain’s decision to quit the bloc. But it is also well placed to draw business away from its neighbour, particularly in financial services.

Shannahan said some companies had already narrowed down their options.

“My expectation is that by Q2 of 2017 we will start to see companies make decisions,” he said, announcing that the number of employees of multinationals in Ireland hit a high in 2016.

British Prime Minister Theresa has said she plans to begin the two years of exit negotiations with the EU by the end of March.

“It is not likely that companies will await the outcome of (those) negotiations,” Shannahan said. “..I think the political timeline and the commercial timeline are entirely incompatible. That is particularly true in the financial services sector.”

Inquiries to the IDA were also likely to rise in the technology and pharmaceutical sectors, he added.

He said North American companies would make Brexit-related decisions first, followed by Asian and lastly by British and European ones, which might be willing to wait longer to see how the negotiations play out.

Ireland, whose economy is the fastest-growing in the EU, is already a major hub for big employers including Apple, Pfizer and Citibank.

Multinational companies added a net 12,000 jobs there last year, bringing their rosters in Ireland to 200,000, or close to one in 10 of the overall workforce.

Some U.S. companies might also put off investment decisions until they saw details of President-elect Donald Trump’s taxation policies, Shannahan added. (Reuters)

Article Source: Business World

Irish Startups hindered by negative banking perceptions

New research published by Trinity College today shows that firms in Ireland have the greatest non-application rates with banks because of fear of rejection.

The research indicates that many companies who might well have good projects and which might make attractive loan prospects will not apply to banks for loans for fear of being rejected.

A survey looked at 6,287 small and medium companies across nine Eurozone states. It found that non-application for fear of rejection placed Ireland at the top with 44% followed by Germany (24%), Greece (19%), Belgium (18%), Austria (17%) and Spain (17%).

For more on this article, please visit: Business World

46 % of Irish say money is their main worry

A recent survey from Royal London has indicated that four in ten (40%) of Irish people say their health will be their main focus in 2016.

The nationwide survey of 1,000 people found that health is by far people’s biggest priority (40%) while money is their biggest worry (46%).

The protection experts at Royal London say that it’s also no surprise that people are making health a bigger priority as they get older. Twenty seven per cet of 18 to 34 year olds say they’ll be focusing on it this year which jumps to 42% of those aged 35 to 54 years old and increased to 58% of those aged over 55.

Nearly a quarter (24%) of all male respondents said their career will be their main focus in 2016, compared with just 17% of women.

For more on this article, please visit: Business World

Small businesses facing insurance cost crisis warns Small Firms Association

Small businesses are facing an insurance cost crisis which can no longer be ignored according to the Chairman of the Small Firms Association (SFA), AJ Noonan.

Mr Noonan today referenced recent figures which showed that Insurance costs have increased by 29.6% since 2011.

Between 2012 and 2014, the Central Bank has tracked a rise in the frequency of claims and an increase in the average cost per claim of 8% in private motor, 27% in employer liability and 8% in public liability. Mr Noonan has warned that ‘Ireland’s compo culture’ has been allowed to get out of control in recent years.

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Irish digital advertising spend hit 340M across 2015

An advertising industry study carried out by IAB Ireland/PwC records growth of 29% in the Irish digital advertising market, with total digital spending reaching €340 mln in 2015.

The 2015 IAB PwC Online Adspend Study Display indicates that advertising had the highest growth rate at 38%, representing €137m in 2015. Display now represents 40% of total digital spend.

Paid-for-Search advertising has grown by 28% year on year and remains the dominant digital format with a 52% share of total online adspend at €176m.

Classified advertising online holds an 8% share of total online adspend at €27m.

Within the Display Category, Social Media Display saw a 72% growth from €28.5m in 2014 to €49m in 2015. Spend on digital video grew by 71% from €14.3m in 2014 to €24.5m in 2015 reflecting the strong commitment of brand advertisers to the video format.

Mobile advertising is a key driver of total digital adspend growth accounting for 81% of the total growth arising from the increase in mobile advertising. Mobile Search accounts for 63% of mobile spend at €89m with Mobile Display advertising representing a 37% share at €52m

PwC predicts 14.6% growth (CAGR) in Irish digital adspend during the period 2014-2019.

For more on this article, please visit: Business World