Post by earl on Feb 14, 2008 17:44:40 GMT
Only two months into 2008 and already it is proving an uncertain time in the business community. The cloud of US recessionary fears looms over Europe and the rest of the world while back at home the property market is concerning many.
In addition, it has already been a trying time for the Irish jobs market -- especially for those in the manufacturing sector -- as competition from central Europe and Asia, where costs are cheaper, grows momentum.
According to recent figures from the IDA, 9,216 multinational jobs were created in 2007 while 9,363 equating to 147 net loss -- a trend not seen since the dot.com bomb at the turn of the century although the loss figures would have been much higher back then.
But uncertainty is not the feeling that pervades IDA Ireland's offices at Dublin's Wilton Terrace.
There's been a changing of the guard at the jobs body and new chief executive Barry O'Leary is optimistic about Ireland Inc's ability to maintain its position as a foreign direct investment magnet, despite the international uncertainty.
He is confident that as this country moves up the value chain in relation to the type of investment we are attracting, there are growing opportunities out there both sector-wise as well as new geographic locations.
Stamp
Although he is not in the new job a wet week, he has already put his stamp on the IDA by beefing up the body's drive to sell the Irish market. Internally, about 15 people have been moved from non-business sectors of the IDA to business generation inside Wilton Terrace.
And with oil-rich Middle Eastern and Chinese sovereign wealth funds taking over from private equity as the new big investors in companies, abroad plans are afoot to up the ante in Asia as well as the Gulf region. For example, the IDA is opening up a new office planned in the United Arab Emirates.
"There have always been economic cycles and there is still foreign direct investment to be won out there," he said. "This is evident when you look at areas like ICT and pharmaceuticals" although he concedes that there are areas where Ireland Inc is weak, such as labour costs.
"When you look at the kind of companies that influence FDI in Ireland -- the Microsofts, IBMs, Intel -- they have recently shown good volumes and results.
In addition, the big pharmaceutical firms are showing long term growth. Couple that with the internet space like Google and Yahoo."
In the 1990s Ireland was fighting for basic manufacturing jobs, our position has evolved and now we are looking for more sophisticated investment with R&D playing an increasing role in the type of jobs we are winning.
He notes that while we have lost a number of manufacturing jobs, investment continues to come to the country. For example, Eli Lily, Centrecorp and GSK are recent investors, with R&D playing a strong role.
Alongside this, Mr O'Leary is utilising his background in life sciences and sees this area as a unique opportunity for Ireland to increase its share of the international foreign direct investment pie.
Mr O'Leary has worked at the IDA for 30 years, including 15 years in Germany, and has been primarily responsible for the successful establishment of Ireland as the leading global location outside the US for biopharmaceuticals.
"We need to be ahead of the game and well placed early enough in terms of emerging technologies and other growing sectors. We don't know what the nanospace is going to bring."
Despite the gloom emanating from the US, he is by no means writing off the US. The split of business last year was 70pc from US companies and 30pc from Europe/ Middle East and Asia.
"We are upping the ante in the US and placing technologists there. We are looking specifically at places like Boston and California.
"We're also looking at emerging areas like clean technology and bio energy and ways to attract companies to centres of excellence in these sectors."
He added that IDA Ireland works alongside other bodies like Science Foundation Ireland and Enterprise Ireland as it scans the globe for new opportunities.
But with the business split 70pc/30pc, there are clearly opportunities in Asia and that is a space that the IDA has highlighted as a key target. "This is an active target market and we are chasing it in an aggressive way.
"We have put a team into Shanghai, Tokyo and we just hired a person in Mumbai."
Still, there are issues at home -- particularly in relation to manufacturing. And news that Dell recently opened a manufacturing facility in Poland has raised concerns at a number of levels, not least with its 4,000-plus workers in Limerick.
"We talk to the heads of all the multinational on a regular basis.
In many ways we compete on a different level with several other countries and are still winning out in key areas. Our score sheet is high when it comes to taxes, skills and the expat environment as well as the business needs of multinational chiefs."
In addition, it has already been a trying time for the Irish jobs market -- especially for those in the manufacturing sector -- as competition from central Europe and Asia, where costs are cheaper, grows momentum.
According to recent figures from the IDA, 9,216 multinational jobs were created in 2007 while 9,363 equating to 147 net loss -- a trend not seen since the dot.com bomb at the turn of the century although the loss figures would have been much higher back then.
But uncertainty is not the feeling that pervades IDA Ireland's offices at Dublin's Wilton Terrace.
There's been a changing of the guard at the jobs body and new chief executive Barry O'Leary is optimistic about Ireland Inc's ability to maintain its position as a foreign direct investment magnet, despite the international uncertainty.
He is confident that as this country moves up the value chain in relation to the type of investment we are attracting, there are growing opportunities out there both sector-wise as well as new geographic locations.
Stamp
Although he is not in the new job a wet week, he has already put his stamp on the IDA by beefing up the body's drive to sell the Irish market. Internally, about 15 people have been moved from non-business sectors of the IDA to business generation inside Wilton Terrace.
And with oil-rich Middle Eastern and Chinese sovereign wealth funds taking over from private equity as the new big investors in companies, abroad plans are afoot to up the ante in Asia as well as the Gulf region. For example, the IDA is opening up a new office planned in the United Arab Emirates.
"There have always been economic cycles and there is still foreign direct investment to be won out there," he said. "This is evident when you look at areas like ICT and pharmaceuticals" although he concedes that there are areas where Ireland Inc is weak, such as labour costs.
"When you look at the kind of companies that influence FDI in Ireland -- the Microsofts, IBMs, Intel -- they have recently shown good volumes and results.
In addition, the big pharmaceutical firms are showing long term growth. Couple that with the internet space like Google and Yahoo."
In the 1990s Ireland was fighting for basic manufacturing jobs, our position has evolved and now we are looking for more sophisticated investment with R&D playing an increasing role in the type of jobs we are winning.
He notes that while we have lost a number of manufacturing jobs, investment continues to come to the country. For example, Eli Lily, Centrecorp and GSK are recent investors, with R&D playing a strong role.
Alongside this, Mr O'Leary is utilising his background in life sciences and sees this area as a unique opportunity for Ireland to increase its share of the international foreign direct investment pie.
Mr O'Leary has worked at the IDA for 30 years, including 15 years in Germany, and has been primarily responsible for the successful establishment of Ireland as the leading global location outside the US for biopharmaceuticals.
"We need to be ahead of the game and well placed early enough in terms of emerging technologies and other growing sectors. We don't know what the nanospace is going to bring."
Despite the gloom emanating from the US, he is by no means writing off the US. The split of business last year was 70pc from US companies and 30pc from Europe/ Middle East and Asia.
"We are upping the ante in the US and placing technologists there. We are looking specifically at places like Boston and California.
"We're also looking at emerging areas like clean technology and bio energy and ways to attract companies to centres of excellence in these sectors."
He added that IDA Ireland works alongside other bodies like Science Foundation Ireland and Enterprise Ireland as it scans the globe for new opportunities.
But with the business split 70pc/30pc, there are clearly opportunities in Asia and that is a space that the IDA has highlighted as a key target. "This is an active target market and we are chasing it in an aggressive way.
"We have put a team into Shanghai, Tokyo and we just hired a person in Mumbai."
Still, there are issues at home -- particularly in relation to manufacturing. And news that Dell recently opened a manufacturing facility in Poland has raised concerns at a number of levels, not least with its 4,000-plus workers in Limerick.
"We talk to the heads of all the multinational on a regular basis.
In many ways we compete on a different level with several other countries and are still winning out in key areas. Our score sheet is high when it comes to taxes, skills and the expat environment as well as the business needs of multinational chiefs."