As implications of Budget 2027 are assessed by industry, a new IoD Ireland survey finds 77% of directors expect growth next year, but 70% say infrastructure deficits still hampering financial performance. Government taskforce member Seán O’Driscoll says risk cannot be avoided if Ireland is to deliver infrastructure critical to sustain economic success.
More than three in four business leaders expect their organisations to grow in 2027, despite mounting concerns over Ireland’s competitiveness and infrastructure, according to the latest Institute of Directors (IoD) Ireland survey.
The quarterly business survey of 427 directors and business leaders, launched at the IoD Ireland 2026 ‘Leading in Governance’ conference, found that 77% expect business growth next year. 37% of organisations surveyed plan to increase headcount in 2027, and nearly 52% expect to maintain current staffing levels, and 11% plan to reduce staff.
However, concern over Ireland’s competitive position is stark among businesses, with over 61% believing the country has failed to become a more competitive location for investment and growth since Budget 2026 last year.
Infrastructure is a dominant concern for business leaders, with over 70% believing that deficits in housing, energy, water, transport, and broadband are damaging their organisation’s financial performance.
Within this, housing availability and affordability is the biggest constraint, cited by nearly 43% of business leaders, followed by energy supply, capacity or costs (22%), and road and public transport infrastructure (17%).
The impact is already being felt, with 33% saying infrastructure constraints are hampering talent attraction and retention, 22% citing higher operating costs and 12% citing restrictions on growth and operations
Seán O’Driscoll, prominent businessman, Chair and Government Advisor (former chief executive and Chairman of Glen Dimplex, former Chair of ESRI, and member of the Government’s Accelerating Infrastructure Taskforce), who will speak at the conference later today, is calling for a mindset shift in how the Government sees risk.
Prior to the conference Sean said:
“While the Government’s plan to invest more than €250bn in infrastructure over ten years is a welcome headline figure from Budget 2027, Ireland still faces deep-seated challenges when it comes to delivering badly needed infrastructure, at pace and within budget. Our infrastructure deficit isn't a lack of ambition or talent; it is the result of two decades of failing to plan for our own success.
Sean added:
It is encouraging to see in the IoD Ireland survey, that business leaders expect business growth, but the findings around the negative impact infrastructure issues are having on an organisation’s financial performance is worrying and needs to be addressed. If we want to safeguard Ireland’s long-term competitiveness and deliver the housing, energy, water and transport systems a growing economy requires, we need clear accountability, faster decision-making, and a willingness to accept and manage risk, rather than being paralysed by it."
Speaking about the new IoD survey ahead of the conference, Dr Caroline Spillane CDir, CEO of IoD Ireland, said:
“The optimism and resilience among business leaders is very evident, particularly against a backdrop of persistent cost pressures and infrastructure constraints. Directors are ready to invest, grow and create jobs, but that ambition must be matched by decisive action to lower the cost of doing business and remove the structural barriers holding firms back. As we digest the impact of Budget 2027, it is very striking that well over half of business leaders do not feel the business provisions outlined in the previous Budget last year have been able to boost competitiveness a full year on.
Caroline added:
IoD Ireland will continue to engage closely with Government to ensure the views of its members are represented and calls for measures that enhance Ireland's competitiveness, enabling businesses to grow, innovate and contribute to the country's continued economic success.”
O’Driscoll will speak later today at the flagship annual Institute of Directors Ireland event, Leading in Governance, which brings together directors, senior executives and governance professionals from across Ireland. The event will explore competitiveness, innovation, governance resilience and infrastructure issues across the Irish economy as well as the impact of Budget 2027 on business.
He will be joined by: Kara Owen CMG CVO, British Ambassador to Ireland; Professor Orla Feely, President, University College Dublin; John Hennessy CDir, Non-Executive Chair, Origin Enterprises Plc and Senior Counsel, former Non-Executive Chair of Dalata Hotel Group and Chair of CPL; Professor Stephen Kinsella, Economist, Full Professor of Economics at the University of Limerick, and Economic Advisor to An Tánaiste and the Minister for Finance; and Mary-Elizabeth McMunn, Deputy Governor Financial Regulation, Central Bank of Ireland. The event will be moderated by Áine Kerr, Entrepreneur, Broadcaster and Chair of Rethink Ireland.
Leading in Governance 2026
Bringing together directors, senior executives and governance professionals from across Ireland, this flagship event will feature an outstanding line-up of speakers exploring competitiveness, innovation, governance resilience and infrastructure. Taking place on Tuesday, 13th October 2026.
