Investors are more confident in Ireland's logistics sector, a CBRE study found.

The CBRE Ireland Logistics and Supply Chain Index for 2018 shows an overall confidence score of 63.3 — up from 60.4 in 2017, but still below the 72.7 figure reported in 2016, demonstrating the extent to which issues such as Brexit are exercising minds in this sector of the economy.

This year’s survey revealed a divergence of confidence between the two sets of respondents, logistics operators and shippers. Last year, shippers were marginally more confident (61.2) than logistics operators (59.7). This year, confidence amongst logistics operators increased to 75.4 and shippers reduced to a 50 measure.

Despite a positive economic outlook, the deterioration in shippers’ confidence year-on-year is not surprising according to CBRE, considering that the prices of raw materials and inputs are increasing at a faster rate than it is possible to pass on to customers in the current environment.

It is encouraging to note that despite the significant challenges across supply chains, 52% of respondents intend to increase their logistics-related headcount to some extent over the next 12-month period (up from 46% last year) with the largest cohort (34%) expecting to increase their headcount by between 2% and 5% year-on-year.

That said, 12% expect to see a reduction in headcount over the next 12 months (up from 6% last year) with most of these expecting to reduce headcount by between 2% and 5%.

Last year was characterised by shortages of modern industrial and logistics stock to satisfy demand across the island of Ireland which in turn increased rental growth and negatively impacted take-up volumes.

According to the results, 71% of logistics professionals expect an increase in demand for logistics property in 2018 (up from 56% last year), mirroring trends in surveys in 2016 and 2017.

Almost everyone — 93% — expects to see an increase in demand for logistics properties in 2018 (up from 77% last year) compared to only 43% of shippers.

Overall, 23% of respondents said Brexit uncertainty will be one of the biggest challenges facing their business in 2018.

Other issues that came up in this year’s survey included a shortage of drivers and other key skilled employees as well as economic conditions and increasing employee wage pressures.