overview overview of irish economy key business sectors skills requirements
TRANSCRIPT
Overview
Overview of Irish Economy
Key Business Sectors
Skills requirements
Fastest growth rates in the EU…
…lead to falling unemployment
…increasing tax revenue
Over reliance on building and construction left Ireland exposed to the property crash.
Resulting recession saw collapse of government revenue and increasing expenditure…
A rise in government bond yields above 8% lead to a request for financial assistance to the trokia
Ireland has already delivered over €20 billion in austerity - total adjustment amounts to over 20% of 2010 GDP
Gap between revenue and expenditure to close further
Dramatic improvement in unit labour costs
The 2012 World Bank Doing Business Report shows that Ireland has one of the best regulatory environments
Start a business
Investor protection
Paying taxes Total rank
Ireland 13 5 5 10
Germany 98 97 89 19
France 25 79 58 29
Portugal 26 46 78 30
Spain 133 97 48 44
Italy 77 65 134 87
Greece 135 155 83 100
Source: World Bank.
Ireland: why the outlook is bright
Ireland has the capacity for export-led growth Firms have responded to the downturn by cutting costs
and improving productivity Ireland’s fundamental strengths remain… …the business environment is good… …and Irish firms are confident in their outlook… …which is why market confidence in Ireland is beginning to
return
Ireland can have an export-led recovery because net exports make a substantial contribution to GDP
IBEC research shows that the vast majority of companies expect to grow turnover in the next five years
Source: IBEC.
Employment still higher than a decade ago
Ireland, Employment, Total
Source: Reuters EcoWin
98 99 00 01 02 03 04 05 06 07 08 09 10 11
Pe
rso
n (
mil
lio
ns
)
1.4
1.5
1.6
1.7
1.8
1.9
2.0
2.1
2.2
Q4 2011 –First employment increase since Q4 2007
Source: Reuters EcoWin
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
07 08 09 10 11
Pers
on
-80000
-70000
-60000
-50000
-40000
-30000
-20000
-10000
0
10000
20000
30000
The base of indigenous companies is strong
Half of the medical technology companies are Irish-owned There is a vibrant software sector exporting mainly to the
UK and the US. Ireland has a natural competitive advantage in the food
and drinks sector. Indigenous manufacturers are becoming increasingly
sophisticated. Thanks to competitive adjustment achieved to date,
Ireland is pricing itself back into international markets.
Key Sectors for the Future
Medical Devices Pharmaceutical Finance Food & Drink ICT
ICT - Industry Overview
All of the top 10 technology companies are present in Ireland
Current employment: 84,000+
Employment growth: 6% in 2009; 4% in 2010
Jobs announcements: 3,500 in 2010; over 4,000 in 2011
2,700+ jobs announced to date in 2012
5 of the top 10 exporters are technology companies
ICT
Medical Devices Sector
11 of top 13 Med Tech Companies have base in Ireland
200+ companies in Ireland (100 are irish owned)
Employs over 25,000 people
Irelands exports are €7.3 bn annually
Ireland exports medical technology to 95 of the top 100 countries world wide
Almost 60% of companies expect to increase their employment numbers in 2012.
Medical Devices Sector
Pharmaceutical Industry
8 of the top 10 companies are located here
12 out of the top 25 selling drugs are produced in Ireland
Exports €50.8 billion in 2010
Employment in the sector has grown from 5,200 in 1988 to over 25,000 in 2010.
Pharmaceutical Industry
Food and Drink Industry
46,000 direct and 60,000 indirect employees – 7.5% total employment
120,000 farmers output (€6.2 bn)
Exports in 2011 €9.0 bn
Food and Drink Industry
Financial Services Sector
Growth in international industry offsetting smaller domestic institutions
Targeting growth of 10,000 employees over next 5
years
Leading position across sectors
Building profile and capacity in new areas
Financial Services Sector
Skill Requirements
All occupations are becoming more knowledge based
Education, training, and skills development is crucial for the future of the Irish economy and society
The population is among the best educated in the world
Source: OECD.
Changing Skills Requirements
There is likely to be demand for an:
• Increasing Breadth of Knowledge
• Rising Qualification and Technical Skill Requirements
• Importance of Continuing Learning
• Interpersonal Skills
• Innovation / Creativity
Specific Skills
S.T.E.M.Science / Technology
Engineering
Mathematics
Languages
The business community’s ambition for Ireland
Ireland today
Our ambition for Ireland
Growth of double EU average
Top 20 for prosperity of EU’s 230 regions
Top 5 OECD Better Life countries
Our ambition for Ireland
Export share of indigenous companies
2 million people working by 2020
Balanced economic growth
Our ambition for Ireland
Best country in the world to do business
Why we believe
We have form
We have the capacity
There are no limits
Restoring domestic demand
Keeping Ireland strong in Europe
Supporting job creation
Delivering world-class public services
How we can
Challenges
Global economy
Ourselves
Debt burden
What if we don’t?
StagnationAusterity
Missed Opportunity
Lost Generation
GrowthProsperity
PossibilityNew
Beginning
Success is….
www.ibec.ie/recovery
twitter: @ibec_econ
linkedin: http://www.linkedin.com/groups/Drivingirelandsrecovery
youtube: http://www.youtube.com/user/IBECInformation
#ibecdir
The business community’s ambition for Ireland