Strategic foresight: How Irish CEOs are building for the long term

This latest survey highlights how Irish CEOs are changing how they run their businesses. Most are now producing closer to where goods are sold, in many cases, that means within Ireland or across nearby European markets. They are building regional supply chains and mitigating their global exposure. This is long-term planning in action.

Seven in ten CEOs have placed regionalisation at the core of their strategy, across operations, supply chains, research, and technology.

Globally, nearly three-quarters of CEOs have already localised part of their production or supply chains, signalling that regionalisation is no longer a short-term fix but a long-term restructuring of global business models. Irish CEOs’ push for regionalisation is aligned to this global shift.

Ireland is well positioned to benefit from this regionalisation opportunity, with CEOs stating that this is only possible because the basics are in place. Most point to strong access to capital, a stable regulatory environment, and solid infrastructure as the enablers.

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Inflation continues to dominate the agenda as Irish CEOs face a complex mix of financial and operational pressures. However, in September, 78% of our survey participants cited input costs as a source of optimism up from 48% in May. Against, this, the cost of energy remains a cost driver, with 50% of leaders saying this is directly affecting operational performance. While some companies are managing to pass these costs on to customers, only some say they can do so without impacting demand. Margin pressure is intensifying, particularly in sectors with limited pricing flexibility.

Regulatory complexity is compounding the challenge. Over 40% of CEOs say ESG compliance is slowing decision-making, and about a third say confusing regulations are making it harder to navigate changes. These pressures are forcing leaders to reassess cost structures, investment timelines, and the pace of innovation.

Cybersecurity risk is also rising on the agenda. Viewed as a compliance issue, many CEOs also see it as an obstacle to innovation, limiting their ability to roll out new digital solutions with confidence. Alongside cost and talent, it continues to present a significant challenge for transformation.

Talent constraints are also impacting resilience. CEO confidence in attracting and retaining skilled workers has declined, with just 35% now somewhat optimistic, down from 55% earlier this year. The drop is most pronounced in sectors with high demand for digital and technical skills. In response, leaders are adjusting hiring strategies, investing in workforce development, and expanding partnerships with universities and training providers. Despite these efforts, talent challenges continue to impact the pace of transformation and limit growth potential.

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Irish CEOs are making deliberate moves to reshape their businesses. Nearly 60% plan to increase investment in portfolio transformation this year, up from 48% in May. The focus is on improving performance, simplifying operations, and building long-term value. Automation is a key priority, with many leaders focussing on process efficiency and cost reduction. AI adoption is also high on the agenda as conversations with multinationals and PLCs point to AI as a major boardroom focus, not a side note.

Funding strategies remain disciplined. Just under six in ten CEOs say they plan to rely on organic growth through higher revenue or better margins to finance transformation. Around 20% are raising capital from shareholders, while others are turning to debt or divesting non-core assets. CEOs are endeavouring to maintain investment momentum without overextending.

Improving financial performance is the top driver behind portfolio change. One in three CEOs cite financial results as the main reason for rethinking their business mix. Others are responding to competitive pressure, preparing for industry changes, or streamlining to focus on core capabilities.

The survey also highlights longer-term motivators: some CEOs are reshaping portfolios to address sustainability priorities, others to reduce organisational complexity, and a notable share are responding to the impact of technology reshaping their industries. There is no doubt that transformation is now anticipatory and not reactionary.

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Deal activity is on the rise, with nearly all Irish CEOs planning to pursue transactions such as M&A, divestments or partnerships in the coming year. Many are targeting companies that offer something practical such as new technology, skilled talent, or access to markets they haven’t yet reached.

Innovation is a strong motivator. About 38% say they are acquiring to bring fresh ideas into their business. Others are focused on improving how they deliver products or connect with customers. These deals are less about making headlines and more about delivering tangible business value.

The breakdown shows a preference for acquiring complementary businesses and suppliers to strengthen the value chain, alongside targeted plays for technology, IP, and new market entry. Large-scale acquisitions are less common, signalling that CEOs are prioritising capability-building over scale.

The global survey paints a similar picture: alliances and JVs are gaining traction in sectors from life sciences to clean energy, offering a faster, lower-risk path to innovation than large scale acquisitions. Irish CEOs’ appetite for M&A is clearly aligned with this global pivot toward capability-building and complementary partnerships.

Joint ventures are part of the mix. CEOs see value in teaming up to share risk and build capability without taking on the full cost of an acquisition. These partnerships often focus on digital tools, supply chain upgrades, and better customer experiences.

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Ireland is the top investment destination among the Irish CEOs surveyed. Out of the respondents, 19 ranked Ireland in their top three priorities for capital allocation over the next 12 months. The United States came second with 13 mentions, followed by the United Kingdom with 12.

This marks a departure from earlier surveys. Ireland’s appeal is growing, especially for companies focused on supply chain resilience, talent access, and regional market reach. CEOs see it as a stable base for operations and a strong location for technology and infrastructure investment.

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Despite increasing complexity, confidence in business performance is holding steady. Optimism around profitability has climbed from 40% to 60%. Sentiment around the broader economy is more cautious and tariffs are still on the radar, with 30% of CEOs agreeing that higher tariffs are expected to weaken their financial performance.

The survey also asked how CEOs would respond if new tariffs emerged. The most common answers were reconfiguring supply chains, investing in efficiency or automation, and adjusting pricing models, practical levers that keep businesses agile in a volatile trade environment.

AI is another divisive topic. The survey results clearly frame it as “caution and ambition”. But outside of the survey, our recent conversations with CEOs, especially in the multinational space, suggest AI is rapidly moving to the core of transformation strategies.

Climate risk is acknowledged but few CEOs are translating concern into board-level action. Just under half of respondents agree that environmental issues are being underplayed in boardrooms.

These responses point to a leadership mindset that is steady under pressure, acutely aware of challenges and focussed on building resilient businesses for the long term.

Finally.

There is a quiet confidence running through this year’s responses. Irish CEOs are staying focused and staying the course. The plans they are putting in place now reflect a deeper understanding of how to build businesses that last.

The CEOs we surveyed are not interested in passing trends and they are not reacting to market noise.

For private companies, that often means leaning on Ireland as a stable hub for talent and innovation. For multinationals, it means embedding Ireland within a regional strategy. Either way, the foundations are in place. What comes next will require disciplined execution and the ability to remain agile in response to structural pressures and geopolitical uncertainty.

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Summary

Irish CEOs are strategically focusing on localisation, resilience, and transformation to navigate economic challenges. With a strong emphasis on M&A and automation, they aim to build long-term value and adaptability in their businesses.