HALF of small businesses in the north are already suffering due to Brexit, according to new analysis from AIB.
The bank's latest all-island research shows that while sentiment has marginally improved, almost one in two (48 per cent) Northern Ireland SMEs (small to medium enterprises) are being negatively impacted due to the economic and political uncertainty associated with leaving the EU.
The data also outlines how Brexit has hit investment, with over a third (38 per cent) of local firms either postponing or cancelling investment plans as a direct result, while 10 per cent are currently reviewing them.
The survey further reveals how Brexit is actively impacting on recruitment intentions in the north. A total of 17 per cent of respondents in the north said they have postponed hiring due to the impending withdrawal, while 3 per cent stated they have let workers go.
Strikingly, however, over half (51 per cent) of Northern Ireland SMEs have yet to begin preparations for Brexit ahead of the October 31 deadline.
Brian Gillan, head of business and corporate banking at AIB subsidiary, First Trust Bank noted that local SMEs operating in the retail and manufacturing sectors have been hit most by Brexit, with many recording an impact on profit margins, input costs and competitiveness.
Looking ahead he does the not see the outlook improving in the short-term.
"Given the lack of clarity in the last three years, we don’t expect visibility to change dramatically within the next three months," Mr Gillan said.
"Our advice to business owners is to take cues from the sectors they operate in, business groups and economic leaders and make sure they are planning with a view to future proofing their operations for all eventualities. This includes working with your banking partner who can provide support on how to consider additional costs and on working capital requirements.”
