Angela McGowan, director of CBI Northern Ireland, says there remains optimism in the market, the creation of ‘good jobs’ remains keys and this year’s Top 100 Northern Ireland Companies, in association with KPMG, showcases the scale and breadth of our biggest firms
Angela McGowan, director of CBI Northern Ireland, says there remains optimism in the market, the creation of ‘good jobs’ remains keys and this year’s Top 100 Northern Ireland Companies, in association with KPMG, showcases the scale and breadth of our biggest firms
The connection between a thriving economy and rising living standards cannot be ignored.
When the economy grows, we have more tax revenue for our public services and investment in critical infrastructure. Thriving companies create jobs, contribute to local communities and of course provide the goods and services that households demand. That’s why it’s important to take time each year to pause and recognise the Top 100 companies in Northern Ireland and how they are creating significant employment opportunities and investing in the region’s human capital.
This latest 2024 list reflects a healthy level of diversity in terms of both sectors and location. From food manufacturing and construction to state of the art technology companies, these firms offer employment across Belfast, Mid Ulster, Newry, Londonderry and beyond. Together these employers give work to over 100,000 employees and have a combined turnover of £29.3bn.
Martin Luther King is reported to have said: “No work is insignificant… all labour that uplifts humanity has dignity”. The importance of the private sector in job creation cannot be taken for granted by any government and likewise employers must take responsibility for creating ‘good jobs’, which entails setting high standards in terms of health and safety, fair remuneration, working conditions, training opportunities etc – all of which bring wider economic and social rewards for the individual and society.
At the CBI’s People and Skills Working Group, I hear regularly from HR directors that are focused on continually evolving their offer to employees. With many firms worried about the local skills deficit, the shrinking working-age population and strict migration and labour mobility issues, today’s employers are clearly focused on attracting, retaining and up-skilling their workforce. A recent discussion with chief executives on economic resilience saw firms rank “employee retention” as one of the top three risks on their radar.
But of course, job creation is very much dependent on the macro-economic climate and there is no doubt that the past few years have seen significant uncertainty in terms of inflation, supply-chain shocks and geo-political insecurity. Firms on today’s Top 100 list are still contending with an array of challenges but are nonetheless hopeful that a more stable economic backdrop in the medium term will give them a firm foundation to invest, gain market share and create more and better jobs in the local economy.
The UK economy disappointed last year, with GDP growing by only 0.1%. Dual headwinds of high inflation and increased interest rates weighed on consumer spending throughout the year, with sectors like retail and hospitality most impacted. Encouragingly, economic activity began to gradually recover at the start of 2024, with surveys reporting underlying economic momentum improving during quarter two.
Although CBI’s latest forecast expects growth to pick up in the second part of this year, economic growth is unlikely to be over 1% year-on-year. But on the bright side, 2025 looks much more promising with growth potentially reaching 1.9% due to improved consumer spending coming on the back of falling inflation, lower interest rates and improved household incomes.
Business investment, so important to driving employment, has so far been weak in 2024. Higher interest rates and costs have given many chief executives reasons to think twice about critical investments, with some telling me that acquisitions have become an easier and cheaper way to expand their businesses, while others have chosen to ‘wait and see’ – holding off until those borrowing costs come down. For those companies with higher cash reserves and less borrowing requirements; ploughing ahead is the preferred option as they don’t expect material costs to decline any time soon.
In terms of where investment is happening, green energy is the clear leader – with companies absolutely determined that they will be less reliant on global energy supplies in the long term. Investment in electrification, solar, wind, battery storage, hydrogen and biofuels are all in the mix. However, uncertainty continues to be a barrier and firms want a post-election government to not just remain committed to the green agenda but support the transition through tax breaks, incentives and a planning system better aligned to net zero ambitions. With cyber-attacks on the rise, increased investment in ensuring systems and staff are up to date with security procedures remains another important investment priority for firms.
There is optimism that investment levels and job creation will rise next year as lower inflation and interest rate cuts support growth. Predicting the economic future is one thing, but delivery is another. For that reason, the CBI’s Business Manifesto, created together with over 400 business leaders and 70 trade associations, outlines the measures that businesses are looking for from the next Government to redefine the economy’s growth journey.
Our proposals include the delivery of a Net Zero Investment Plan and implementation of a targeted green super-deduction. We also call for action to tackle our productivity problem – through support for investment in technology and innovation, and with measures to boost our labour market through the expansion of tax-free occupational health support. Those are just a few of many possible steps to improve our economic prospects.
No government can solve the challenges facing the economy alone, and the CBI is clear that harnessing the insights and innovation businesses bring to the table will be key to delivering lasting change. The CBI remains committed to having those conversations with parties of all stripes to play their part in realising the ambition shared by the companies listed in our Top 100 celebration and the wider business community.