CFOs in Ireland are cautious about the year ahead but remain focused on balanced investment in business growth and innovation, writes Tom Hynes

The biggest priorities for Ireland’s Chief Financial Officers (CFOs) in the 12 months ahead will include digitalisation and technological transformation, supply chain efficiencies, organic growth and the introduction of new products and services.

Our Autumn Deloitte European CFO Survey has found a decline in business sentiment among CFOs in Ireland, however, with just 19 percent feeling more optimistic about the financial prospects of their companies compared with 61 percent in the Spring of this year.

The figure is down from 63 percent in Autumn 2023 and comes as the proportion of CFOs who now feel less optimistic about their companies’ financial outlook has tripled, from eight percent in Spring 2024 to 28 percent in Autumn 2024. 

Our survey results clearly show an increased wariness among CFOs in Ireland when it comes to financial risk. 

Several factors are likely contributing to this, including the uncertain economic outlook and tight financing conditions. Geopolitical uncertainties, with fears over protectionism, trade disruption and high costs around labour and energy will also add to this. 

Asked to select the factors likely to pose a significant risk to their business in 2025, 89 percent cited retaining and attracting skilled and qualified talent, with 76 percent raising concerns about the economic outlook and growth risks. A total of 76 percent identified cybersecurity risks, and 74 percent selected increasing regulations.

The data for our Autumn Deloitte European CFO Survey was collected in September and October 2024 and reflects responses from 1,893 CFOs in 27 countries, including 54 in Ireland.

The survey shows that the outlook for capital expenditure (CAPEX) among CFOs in Ireland remains positive, with 42 percent planning to increase their CAPEX over the next 12 months, reflecting a measured investment approach. 

CFOs are acknowledging that they need to adapt to evolving regulations by maintaining robust compliance systems and proactively managing regulatory risks.

A balanced approach is being applied to the business priorities identified by CFOs. Asked about the priorities for their business in 2025, 48 percent of the CFOs surveyed selected digitalisation and technological transformation. A total of 44 percent said they planned to review supply chain efficiencies, 37 percent selected organic growth, and 35 percent cited the introduction of new products and services.

It is encouraging to see Ireland’s CFOs combining defensive strategies, such as reviewing supply chain efficiencies and fostering economic growth, with expansionary strategies, such as digitalisation and technological transformation. 

Leveraging advanced technologies, like generative artificial intelligence, can assist companies in driving efficiency and innovation, providing them with a competitive advantage. 

Combining investment in this area with enhanced operational resilience and sustainable development is a prudent approach that should position companies well for future success.

The number of Irish CFOs planning to increase hiring has dropped significantly by almost half in the last year, down from 58 percent in Autumn 2023 to 31 percent in Autumn 2024. 

The majority (81%) believe it is not an opportune time to take on greater risk on their balance sheet, up from 71 percent in Spring 2024.

The proportion of CFOs anticipating revenue growth over the next 12 months has also fallen from 74 percent in Spring 2024 to 59 percent in Autumn 2024. 

The proportion of those optimistic about an increase in operating margins has fallen from 53 percent in Spring to 37 percent in Autumn. 

While they are right to be cautious, it is positive that the majority remain hopeful about revenue growth over the next 12 months and over a third still expect an increase in operating margins. 

Tom Hynes is a Partner with Deloitte Ireland