Figures from the Irish Small and Medium-sized Enterprise Association (ISME) show that more than half of managers are less optimistic about their business' prospects than they were this time last year. Just 11% claimed to have grown more confident since then.
The organisation estimates that one third of the country's manufacturing companies, employing 100,000 people, would cease to exist within the next five years, if conditions persist.
In other findings from the survey, 48% of companies reported that their sales and order books were slimmer than normal.
Meanwhile, 44% said turnover had fallen compared with this time last year and just 29% said it had increased. ISME said this has had a knock-on impact on demand, which has fallen in 28% of cases.
Reflecting the UK experience, Irish manufacturers have borne the brunt of the downturn, which has forced one in three to cut employee headcount in the last 12 months.
