Irish engineering sector optimistic about the future despite challenges [Video]

The Irish engineering sector is experiencing steady improvement in business sentiment, according to a new report.

The Engineering Sector Manufacturing Report 2025 published by the Ibec group Engineering Industries Ireland (EII), found overall optimism is on the rise.

However, the sector continues to grapple with challenges such as attracting skilled talent, managing labour costs, and navigating weaker global economic growth.

While confidence is improving, one-third of respondents still rate their organisation’s outlook as average or poor.

Rising costs dominate concerns, with 79% of businesses anticipating wage growth as a key pressure point. 

Innovation is seen as being key to progress with 63% of businesses planning increased investment in sustainability and 58% enhancing digitalisation efforts indicating a shift towards smarter, greener operations.

However, optimism is tempered by falling export sales, expected to decline by 22%, with capital investment, and R&D activity both expected to fall by 12%.

Talent attraction, rising labour costs, and weaker global growth are the top challenges facing …