Press Release from Enterprise Ireland -
70% of lost exports recovered
New Export Sales expected to Exceed €1bn
Sixteen months continuous export growthIn its End of Year Statement published today (Wednesday 22nd December 2010), Enterprise Ireland reported that 2010 was a year of strong recovery of export growth, which has helped to sustain employment in Irish companies. The outlook is more positive now than at any point over the past three years, and Irish companies are using this renewed confidence to aggressively target opportunities in international markets.
Enterprise Ireland estimates that its client companies grew export sales in 2010, recovering in the region of 70% of the losses made in 2009. Enterprise Ireland businesses reported an expansion in new export orders each and every month in 2010 and this trend is set to continue. We expect new export sales from Enterprise Ireland clients in the order of €1 billion in 2010 and more importantly they will spend €19 billion in the Irish economy. Irish companies have withstood the severe conditions they have faced, and have emerged leaner, stronger and with a greater appetite for international growth than ever before.
The best efforts of Enterprise Ireland were focused on sustaining and growing jobs across its client companies. In overall terms, the total number of people at work (full time and part time) in Enterprise Ireland client companies was 156,577, a net decrease of 3,726, or -2.3%.1 This represents an important stabilisation in the employment of Enterprise Ireland client companies.
Full-time employment in Enterprise Ireland client companies stood at 137,241 in 2010. A total of 8,193 new jobs were created by client companies with a net decline of 5,355.
As key export markets have strengthened, and Irish businesses have responded to the opportunities presented, the conditions for job growth have improved. Of particular importance, was the recovery of the food sector which is Ireland’s biggest indigenous industry. The introduction by Enterprise Ireland of special lean programmes for the food sector in conjunction with the Department of Agriculture, Fisheries and Food has resulted in companies increasing productivity. Key investments were also won against strong international competition – most notably Danone Baby Infant formula factory in Macroom. These successes give us great hope and confidence for the continued success of this vital sector.
Frank Ryan, Chief Executive Officer of Enterprise Ireland said:
‘Enterprise Ireland will continue to identify and help secure overseas market opportunities for Irish companies. This will not only assist growth in exporting businesses, but also in the wider economy. The full focus of Enterprise Ireland is aimed at the ultimate objective of increasing exports and consequently, employment here in Ireland’.
Noting the outturn for the year, the Minister for Enterprise, Trade and Innovation Batt O’Keeffe T.D. said:
‘Since March, when I was appointed to this position, I have encountered hundreds of Irish entrepreneurs and business people, who have displayed determination and creativity in meeting the challenges of the past year and sustaining their businesses.
‘The results outlined in Enterprise Ireland’s End of Year Statement demonstrate that their tenacity has critically resulted in export growth that is creating new jobs, sustaining employment and stemming job losses.
‘Over 2011, these firms can build on these achievements and concentrate on making further gains as business activity in our main trading partners recovers. The Government, through Enterprise Ireland, will continue to support Ireland’s entrepreneurial-led firms as they seek further export gains that will provide high-value, sustainable jobs’.
Enterprise Ireland is engaged with clients on an agenda which focuses on growing exports, by building capability in innovation, competitiveness and management development.
Helping Irish companies win sales overseas
Each and every day Enterprise Ireland’s offices in 31 cities throughout the world provide one-to-one support to Irish companies. In addition to these supports they also organise group events such as trade missions, trade fairs and visits from international buyers to Ireland. In 2010 we organised more than 165 events for client companies including international trade missions led by An Taoiseach and Government Ministers to strategic overseas markets including Russia, Kingdom of Saudi Arabia, Brazil, USA and Australia. These visits and events not only help clients win sales, they also offer us an opportunity to showcase the innovative capabilities of the Irish companies to key global influencers and buyers.
Research and Development – Innovation is fundamental to future success of Irish companies
Despite the recession Enterprise Ireland client companies continued to invest in R&D. In 2010, 86 Enterprise Ireland companies were approved R&D funding in excess of €100K. Over €30m has been approved towards R&D in 2010 to date with a number of significant R&D approvals each worth over €1m. A series of initiatives are planned in 2011 to maximise the contribution of research to export and job growth in Ireland.
While focusing intently on the immediate challenge of sustaining jobs, Enterprise Ireland continues to work on the medium term initiatives which are necessary to ensure growth can be achieved in the Irish economy in the future.
Entrepreneurs of the future
Critically important is providing the conditions for entrepreneurs to succeed. During 2010 Enterprise Ireland introduced a radical new competitive fund for the internet and games industry with more flexible conditions of investment. This was a direct response to the recommendations of the Innovation Taskforce and the number of applications has far exceeded our expectations. As a result of this we expect to introduce similar funds to more sectors in 2011.
Enterprise Ireland works with hundreds of start ups each year. In 2010 alone we invested in more than 80 new High Potential Start-Ups. These companies will play a crucial role in job creation in the coming years.
Overseas entrepreneurs will be a key target for Enterprise Ireland in 2011. We are developing initiatives and programmes to make Ireland a more attractive location for them to start their business in Ireland.
Access to Finance is one of the significant challenges for Irish companies
In 2010 Enterprise Ireland continued to make strategic interventions to sustain jobs. The Enterprise Stabilisation Fund which was launched in April 2009 has to date approved over €86m for 242 projects, this investment will sustain over 10,000 jobs throughout Ireland.
Under the Government’s Employment Subsidy Scheme (Temporary), administered by Enterprise Ireland on behalf of the Department of Enterprise Trade and Innovation, a total of 1,589 approvals valued at over €130m, were made over two calls towards 14,902 job subsidies (13,023 FT and 1,879 PT). These companies in turn have committed to maintain 100,396 (86,365 FT and 14,031 PT) jobs.
Ensuring Ireland has a first class investment eco-system is a major objective of national policy. Enterprise Ireland continues to develop strengthened relationships with the banking sector in Ireland. Initiatives have included introductions to clients, exchange of expertise and staff exchanges with the main Irish banks. In 2011 we will continue to deepen our relationships with the banks (including key international players) on behalf of our clients to ensure they receive the support they need to win in international markets.
A large number of expressions of interest were received to participate in Innovation Fund Ireland and significant progress will be made in 2011. Furthermore, well in excess of €100m is now available for seed funding, supported by Enterprise Ireland in conjunction with private funds, which represents an unprecedented level of equity financing for start-ups.
Competing to win
Manufacturing is a vitally important sector for Ireland and increased competitiveness is an ongoing objective for Irish companies. Recognising the need to drive the ‘lean’ agenda to increase productivity and drive down costs, Enterprise Ireland introduced significant additional support for lean activities. To date 71 companies have been approved funding, mostly in food, cleantech, electronics and lifesciences. Already, improvements in lead times, unit costs and profitability in the order of 10-15% have been achieved by participating companies and Enterprise Ireland will continue this drive in 2011
Developing leaders in Irish companies
Enterprise Ireland continued to help client companies develop and deepen their leadership and management capability. Throughout the year over 230 managers participated on world class programmes such as Leadership 4 Growth and International Selling. During 2010 Enterprise Ireland introduced a new Graduate 4 International Growth programme where over 50 top level graduates will be placed in export led Irish companies.
Enterprise Ireland is primed to work intensively with the entrepreneurs and businesses which will help shape our economic progress in 2011. The role of the research system and the investment community will be critical and Enterprise Ireland is focused on achieving maximum impact from these sectors for Irish companies. Enterprise Ireland client companies worked extremely hard over the past year to counter the difficulties they faced. This work and preparation will stand to them in 2011 as they continue their drive for success.
