The All-Island Business Monitor from cross-border trade body InterTradeIreland said firms in Northern Ireland and the Republic that traded with both sides of the border had enjoyed a strong start to the year.
It said cross-border traders are in a stronger position than those who don’t trade over the border.
According to the Republic’s Central Statistics Office, cross border trade in 2022 was valued at €10.3bn (£8.8bn), up €2.5bn on 2021.
In 2023, the value of goods traded across the border was valued at €10.1bn (£8.6bn).
The All-Island Business Monitor for the first quarter of 2024 said four out of 10 firms that trade across the border report that they are growing, compared to two out of 10 firms that don’t.
The research comes after Sinn Fein Economy Minister Conor Murphy pledged to make encouraging cross-border trade a key part of his leadership — a major departure for policy after a series of DUP economy ministers.
The Windsor Framework concluded between the UK and EU is intended to ensure Northern Ireland’s trade with the Republic continues unimpeded following the UK’s exit from the EU.
In his economic vision, Mr Murphy — who temporarily stepped down from duties this month — pledged to take “full advantage of the all-Ireland economy” and use the Windsor Framework “to grow local exports and attract better quality foreign direct investment (FDI)”.
According to InterTrade Ireland, businesses that trade across the border have stronger sales growth and higher profit margins than those that don’t.
It said the survey found that nearly a third of cross-border traders have a profit margin of over 10%, compared to one in five of those who aren’t doing business with the other side of the border.
It said there was a supply chain opportunity for companies to cater for the one in 10 businesses that told the survey they have difficulty sourcing products or services.
Sinn Fein MLA Deirdre Hargey, acting Northern Ireland Economy Minister, said the strong cross-border trade was “a tribute to the work of InterTrade Ireland”.
She added: “Trading with the south is often a springboard for businesses to grow into new export markets.
“My department will be working closely with businesses to ensure they understand the unique dual market access opportunities and the regulatory environment, so they are well placed to take advantage of our export growth potential.
“The department will continue to work across all sectors to ensure that business have the necessary skills to support this growth.”
Peter Burke, the Minister for Enterprise in the Republic, said the survey highlighted “the significant advantages that can be gained for businesses by exporting across the border”.
The survey said that for all firms in Ireland, profitability was holding up, with seven in 10 firms reporting that they’re profitable.
However, even though inflation has been easing in both the UK and the Republic, companies in both jurisdictions report that costs are still a big concern. The cost of wages was a challenge for four in 10 firms.
Martin Robinson, InterTradeIreland’s director of strategy, said: “The labour market for staff across the island is very tight, with competition driving up wages.
“According to our data, all sectors are still hiring but larger SMEs are feeling the pressure more than most, with 42% last quarter reporting an intent to hire. This quarter that figure has reduced to 28%.”
