The outlook for Northern Ireland businesses in 2026

This article was originally published in Business Eye. 

Last year was challenging for businesses. Shifting trade conditions, geopolitical tensions, and energy price fluctuations fuelled uncertainty in markets and hindered growth.  

Closer to home, Northern Ireland experienced a tight labour market, creating skills pinchpoints in some sectors. Businesses faced rising cost pressures from National Insurance contributions, real living wage adjustments and energy volatility – all of which disproportionately impact micro and small businesses.  

As we start 2026, many of these issues persist. However, there is reason to be cautiously optimistic as we begin the new year. 

Across all sectors, the drive to win new business through external sales or exporting is crucial to our economic growth.  

S&P Global’s economic report published at the end of last year said businesses predicted opportunities emerging and confidence marginally improving in 2026. However, renewed geopolitical tensions might have a ripple effect in some markets.  

In 2025, Northern Ireland outperformed all other regions of the UK in terms of sustained growth in exports to the EU, a trade market worth £6 trillion. While it’s difficult to track the specific reasons for trade wins, dual market access is a unique competitive advantage for our businesses over GB and EU counterparts.  

As part of our work to help businesses export, we’re continuing to evaluate the impact of tariffs, monitor supply chain issues and develop advice and support to assist businesses navigate dual market access.  

Our team in Düsseldorf, for example, helped energy services company Joulen with market research, due diligence, and navigating the German business landscape. This advice and guidance helped the company win a £4m contract. 

But what can really help Northern Ireland businesses is boosting productivity.  

Productivity can mean different things for different businesses. For a large manufacturing business, it might look like large automated production lines; and in a services-based business, it could be AI adoption to streamline efficiency.  

Productivity is the centrepiece of Northern Ireland’s economic ambitions. Invest NI recognises it’s a fundamental driver of living standards and prosperity, which is why we’re so focused on it as a measure of economic success. New funding opportunities, including our Resource Efficiency Capital Grant, Shared Ireland Sustainability Capital Grant and our Agri-Food Investment Initiative are aimed at supporting more businesses to become more productive, profitable and sustainable.

Last year, our Agri-Food Investment Initiative supported Mackle Foods to invest £6.3m to expand its factory and enhance automation; Deli Lites to invest £12.8m to automate its production; and Ready Egg to invest £2.9m to increase operational efficiency.