CEOs in Ireland upbeat on growth and profitability with majority seeking transaction opportunities – EY CEO Outlook

• Almost two in three (64%) CEOs in Ireland surveyed upbeat on the economic and business outlook despite challenging global environment. 
• Seven in ten (70%) seeking transactions opportunities in the next 12 months
• AI and emerging technologies (44%), supply chain pressures (43%) climate change (40%) and shifting global economic and geopolitical environment (37%) the top issues cited
• Optimism amongst Irish CEOs on attracting and retaining talent lags behind global average (53% vs 70%) as skill shortages continue

Dublin, 14 November 2024: CEOs in Ireland are upbeat about their growth prospects over the next 12 months in spite of global economic and geopolitical uncertainty, holding a positive outlook on profitability, access to investment capital and managing business costs according to the latest EY CEO Outlook, which surveyed 1,200 executives globally – including leading CEOs in Ireland. 

CEOs in Ireland display a notable degree of optimism regarding the future of their businesses, particularly in light of the significant cost increases experienced over recent years. A majority (60%) are either very or somewhat optimistic about managing input costs and the overall cost of doing business in the upcoming year. When it comes to business growth prospects, the outlook is even more encouraging. Revenue growth and profitability are areas where optimism prevails, with 60% and 67% of CEOs, respectively, expressing positive expectations. The sentiment around investment capital and free cash flow is also upbeat, with 63% of CEOs positive.

This optimism amongst CEOs here is in line with international trends, where CEOs remain confident about economic growth prospects over the next 12 months. Nearly seven in 10 (69%) of the CEOs surveyed globally are feeling optimistic about the outlook for the coming year even as they continue to navigate the complexities of an unpredictable and volatile business environment, shaped by emerging technologies, shifting consumer behaviour and an uncertain geopolitical landscape.

Globally, shifting geopolitical disruption was cited as one of the top three disruptive forces over the coming year, however this ranked fourth amongst CEOs in Ireland, with AI and emerging technologies (44%), supply chain pressures (43%), and climate change and environmental issues (40%) cited as key disruptive forces. While the research was conducted in advance of the recent US elections, this points to a resilience and optimism of CEOs who have in many instances dealt with a decade of disruption and who remain optimistic for the future. 

Helena O’Dwyer, Head of Strategy at EY-Parthenon Ireland, says “In spite of the many economic headwinds, uncertain geopolitical currents, and wider disruptive forces at play, CEOs here in Ireland and globally are upbeat about their firm’s performance over the coming 12 months.  Increasingly, we are seeing that CEOs are starting to shift from being reactive to proactive in a bid to get ahead. A combination of pragmatic optimism and a fear of being left behind is expected to drive investment and activity over the coming months.”

Carol Murphy, EY Ireland Head of Markets, said “A CEOs mandate includes the responsibility to navigate the complexities of technological change with foresight and determination. Through this survey, we see that CEOs in Ireland are confidently combining smart technology investments with a strong emphasis on their people. They are also focussing on the resilience of their supply chains and ensuring that environmental and social responsibility is integrated within their core values. Our survey highlights the proficiency of CEOs in Ireland in harnessing disruption as a key enabler of business which is crucial in the digital age.”

Increasing optimism on M&A

This optimism on business performance is leading to an increasingly positive outlook on M&A from CEOs. Globally, a strong majority of CEOs (70%) say they are seeking M&A and transaction opportunities, signalling a determined drive for growth as interest rates and the cost of capital fall and inflationary pressures subside. There has been a noticeable increase in activity and positivity in the Irish market with 921 M&A transactions recorded in the 12 months to October according to EY Competitive Edge Research. Additionally, half of respondents in Ireland said they are considering strategic divestments, spin offs or initial public offerings (IPOs). 

Helena O’Dwyer, commented, “The M&A market in Ireland has shown resilience over recent times, with a promising uptick in activity. CEOs should now focus on strategic agility, leveraging opportunities for growth through acquisitions, while also considering divestments or IPOs to optimise their portfolios in response to an evolving financing market.” 

Talent Retention and Acquisition 

Despite the substantial optimism among CEOs in Ireland, concerns remain over attracting and retaining talent. While over half of CEOs here (53%) feel confident they can attract and retain talent, this trails behind the global average of 70%. This reflects a tightening of the labour market at home and highlights a skills shortage in key sectors with the country at near full employment. Despite the recruitment concerns, almost two thirds of CEOs (63%) are confident in being able to offer competitive salaries.   

Helena O’Dwyer says: “Despite some concerns over costs and margins, CEOs are mainly optimistic. They know that staying vigilant on costs is key to success. The talent gap is real, but it presents an opportunity to continue to innovate and invest in our people, making Ireland a magnet for global talent. By focusing on continuous learning and employee development and upskilling, we can turn challenges into a competitive edge.

AI And Emerging Technologies Outweigh Geopolitical Concerns

When asked to name the top three disruptive forces poised to drive significant change in their industry and key markets over the next 12 months, Irish CEOs identified emerging technologies and AI at the forefront (44%), followed closely by supply chain pressures (43%), while 40% identified climate change and environmental issues as key disruptive forces. 

This prioritisation of AI and technology reflects a growing recognition that it is not merely a tool for productivity improvement, but a strategic lever that can fundamentally reshape business models and customer engagement, ultimately driving competitive advantage. Interestingly, sentiment regarding AI and emerging technologies is more robust among CEOs in Ireland compared to global respondents, suggesting a proactive approach to integration and innovation in Ireland.

Eoin O’Reilly, EY Ireland Head of AI and Data, says “Understanding how to effectively utilise AI goes beyond surface-level implementation; it requires recognising the integral role of trust and the need to focus on commercial value, something Irish business leaders really appreciate. Over the past year, we’re seen our clients here in Ireland deliver remarkable outcomes from AI applications such as driving exceptional sales performance, enhancing patient care and boosting employee productivity”. 

 To read the full report, please visit: ey.com/ie/CEOOutlook

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