IP Telecom survey reveals energy costs cited as the primary strain on businesses

As the new year approaches, businesses are facing a complex mix of economic pressures, from rising energy costs to global uncertainty, with Ireland’s upcoming Budget adding another layer of consideration. A nationwide survey conducted by IP Telecom, Ireland’s leading B2B telecommunications provider, of over 500 business decision-makers highlights not only the strains on operations but also the resilience, cautious optimism, and forward-looking strategies that Irish businesses are adopting to remain competitive.

Rising energy costs emerged as the most significant concern for businesses as we approach the winter season, cited by 40% of respondents, followed closely by global uncertainty at 36%. Labour shortages and wage pressures were identified by nearly a quarter of businesses (25%), while regulatory costs and compliance requirements affected 23%. Other operational pressures included broadband and telecom infrastructure (20%), supply chain disruptions (20%), and office or commercial rent (16%). Only a small fraction of respondents indicated no specific factors were currently straining their operations (2%).

Despite these challenges, Irish businesses are optimistic. This confidence is reflected in their outlook for the next 12 months, with 78% of respondents reporting confidence in the Irish economy.

Telecoms technology plays a central role in investment decisions. Reflecting this, 62% of businesses said they are likely to change their telecom provider within the next 12 months, highlighting the increasing value placed on reliability and local presence. Beyond price, the features most commonly prioritised are product reliability (46%), reliability of support (45%), and security (44%), with integration with other software, innovation, brand recognition, and local support also considered important.

Robin Russell, CCO of IP Telecom, commented: “While challenges such as rising energy costs and global uncertainty remain top of mind for our customers and business leaders across Ireland, these results show that companies are actively adapting, investing in technology. Whether that’s reviewing their telecoms and broadband efficacy and providers or exploring AI tools to stay competitive, understanding that innovation is no longer an option but a necessity. At IP Telecom, we are proud to support Irish businesses with reliable, locally based solutions that meet these evolving needs.”

When asked how important it is that their provider is Irish-owned with local support, 89% of respondents said it is important. IP Telecom is a proudly Guaranteed Irish company, having garnered this prestigious credential in 2024 alongside All-Ireland Business Foundation Business All-Star and ISO 9001 and 27001 Certification.

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