The Institute of Directors (IoD) Isle of Man has unveiled the findings from its inaugural Policy Voice survey, offering a snapshot of business sentiment on the island for 2024. The survey, conducted between April 30 and May 21, gathered insights from 48 respondents across various sectors, highlighting key issues facing local businesses.
Economic and Investment Outlook
The survey indicates a cautious yet hopeful stance among the business community. Approximately 50% of respondents anticipate increased investment in their businesses this year, despite broader economic uncertainties. This optimistic trend extends to revenue expectations, with just over half of the participants forecasting growth, and a quarter expecting stable revenues compared to 2023.
Rising Costs and Economic Concerns
However, the outlook is tempered by concerns over rising costs. Two-thirds of the respondents expect to face higher energy bills, and 75% foresee an increase in staff costs amidst static or declining headcounts. This is compounded by a general pessimism about the broader Isle of Man economy, with nearly 60% of respondents expressing a negative outlook for the rest of the year. Only 14% exhibited some degree of optimism, underscoring a significant net pessimism.
Government Engagement and Policy Impact
A recurring theme from the survey was the perceived disconnect between the business sector and government. Only 12.5% felt that the Isle of Man Government engages well with their sectors when considering relevant policies. This gap in engagement raises concerns about the effectiveness of communication and policy-making that supports economic growth and stability.
Challenges in Achieving Net Zero
The transition to a ‘Net Zero’ economy also emerged as a significant challenge. While a quarter of the organisations have committed to achieving Net Zero by 2050, nearly half have yet to establish any such plans. The main barriers cited include a lack of practical feasibility, insufficient financial incentives, and limited awareness of available green tariffs from Manx Utilities. This suggests a need for greater awareness and support to enable businesses to adopt sustainable practices.
Leadership Commentary
Steve Billinghurst, Chair of IoD Isle of Man, commented on the findings: “Our first Policy Voice survey reveals a complex landscape of cautious optimism amid rising costs and a challenging economic environment. The data provides crucial insights that we aim to use in our ongoing dialogue with government and other stakeholders. It’s clear that open and constructive engagement is essential to align policies with the needs of the business community, particularly in areas such as Net Zero commitments and cost management.”
He added, “The survey also highlights a critical need for better communication and awareness around available resources, such as the green tariff from Manx Utilities, which can support businesses in their sustainability efforts.”
The IoD Isle of Man plans to conduct this survey triannually, with the next iteration scheduled for October 2024, to continuously gauge and respond to the evolving needs of the business community.
For more details and a comprehensive analysis of the survey results, visit IoD Isle of Man’s official website.
Disclosure: Michael Josem is a member of the Institute of Directors.