Date: Monday 10 October 2022
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Inflation and rising energy costs are the main external factors that concern local businesses as they prepare for difficult times ahead, according to recent data gathered by Isle of Man Chamber of Commerce.
Figures from the organisation’s quarterly economic survey for Q3 2022 showed a massive 94.9% of respondents citing inflation as their major worry. Other concerns they expressed about the foreseeable future included interest rates (33.6%); taxation (28.5%); business rates (21.4%); competitor businesses (18.3%); and exchange rates (16.3%).
89% said they were worried about rising energy costs while 83% cited labour costs, followed by raw materials (70%); fuel (65%); and finance costs (30%) as the other major financial pressures. ‘Other overheads’, that were not specified, accounted for 61% of concerns about costs.
A total of 103 Isle of Man Chamber of Commerce members took part in the Q3 2022 survey. 86% of the businesses that took part have fewer than 50 employees – 35% of the respondents were from the hospitality, catering or tourism sectors.
Chamber CEO Rebecca George thanked all the businesses that participated, and commented: “The results show a significant shift towards greater concerns about the foreseeable future, with several indicators making it clear that businesses are experiencing the toughest conditions they have faced for many years. Data for the survey was gathered between August 22nd and September 16th – so data was collected before Tynwald approved an electricity cap which freezes the current prices until March 2023. Even so, Chamber feels that the latest survey data supports other data and anecdotal evidence we have from members which illustrate serious concerns about the winter ahead. As always, Chamber’s dialogue with our members and Isle of Man Government will continue, and we will be holding regular meetings with both the Treasury and Department for Enterprise to ensure that they remain fully aware of the challenges that businesses are facing.”
Isle of Man Chamber of Commerce conducts quarterly economic surveys which include core questions received from the British Chambers of Commerce (BCC) that the BCC then feed into their national research. Click here for more information about the British Chambers of Commerce quarterly economic survey for Q3 2022.
Comparing the Isle of Man Chamber and BCC Q3 2022 data, Isle of Man businesses appear to have greater concerns than their UK counterparts about profitability in the next 12 months. 64% of IOM businesses that responded said they expected profits to decrease over that period, compared to 39% in the BCC survey. Figures for expected trends in turnover during the same period followed a similar pattern with the percentages expecting a decrease being 46% (IOM) and 25% (BCC); and those expecting an increase being 29% (IOM) and 44% (BCC).