Ireland is a high-cost location in which to do business and those costs are still rising
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The Council’s latest survey, Cost of Doing Business in Ireland 2016, reports that ‘Ireland remains a relatively high cost location and addressing cost competitiveness must remain a key priority… a series of upward cost pressures have emerged … There is a role for both the public and private sectors alike to manage proactively their cost base and drive efficiency’.
The survey noted that:
- Electricity is the most expensive for both large and small users in the EU
- Fixed Voice charges are 13.5% more expensive than in Germany and 54.3% higher than in Denmark.
- Insurance prices have increased by 29.6 per cent since 2011. These increases are well in excess of EU trends
- Gas prices were almost 5% above the average euro area price
- Business Services showed an upward trend since 2011
- Business rates as a proportion of revenue grew from 24% in 2002 to 38% in 2015.
Auditel is the UK and Ireland’s foremost strategic cost management consultancy and over the past 20 years has worked with more than 5,000 businesses. Managing Director Chris Allison, comments: “Our own research, through leading business publication Management Today, confirmed that 70% of organisations do not have a cost management strategy in place.
There is also a genuine lack of understanding between simple cost cutting exercises and strategic cost management. “Most companies do not have the sophisticated analytical tools to benchmark costs accurately and monitor them after implementing cost savings.
As suggested in a recent KMPG survey, 95% of cost reduction exercises fail and costs come flooding back. We can say with some certainty that strategic cost management driven by the right people, with the right tools and knowledge, can deliver much greater returns than in-house resources alone.”
Reagecon, in Shannon, Co. Clare, is one of the largest producers of Physical and Chemical Standards and Reagents.
Auditel were engaged by Commercial Director, Don Foynes, to examine certain areas of their business expenditure to consider whether any improvements could be achieved. One of Auditel’s strengths is the ability to tap into the expertise of colleagues in specific cost areas and sector specialists were brought in as required.
Mr. Foynes was delighted with the results. “I would describe the Auditel service as a process that lifts the lid on your cost base, provides detailed proposals on what can be achieved and then presents and manages the implementation of the solution. You are kept up-to-date and remain in control at all times. The staff are highly professional and the knowledge they can bring to your business is huge. Our net savings and bottom line impact will be in excess of €250k over the next three years.”
- Electricity 17%
- Gas 8%
- Industrial Gas 14%
- Logistics 12%
- Mobile & Fixed telecoms 15%
- Packaging 55%
- Stationery 40%
In fact, Reagecon are so impressed with Auditel that they are recommending them to their key suppliers, service partners and clients – the ultimate accolade!
A key part of Auditel’s role is to ensure that savings and best value continue to be achieved and are examined on a regular basis. The supply of management information, review of invoices, contracts, industry changes and maintenance of strong supplier relationships are essential for the client’s peace of mind.
Chris Allison adds: “So, if like Reagecon, you believe some improvements are possible, Auditel can offer everything you need to put your cost management strategy in place. This will lead to improved efficiencies and accelerated performance. It will help you to gain a competitive advantage in your field. Book one of our Strategic Cost Reviews and enjoy the tangible benefits and peace of mind that Auditel’s highly effective cost management services can deliver.”