the export journey & enterprise ireland supports · source: annual employment survey results...
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The Export Journey & Enterprise Ireland Supports
Garrett MurrayHead of Potential Exporters Department
Global Ambition video
Enterprise Ireland – What we doEnterprise Ireland helps companies to Build Scale & Expand Reach
Lead agency in Ireland’s start-up ecosystem for indigenous companies
Work with 5,000 Irish owned businesses across all sectors of manufacturing and internationally traded services
Offer leadership, competitiveness, innovation, networking and financial supports made to match ambition at every stage
Mandate to drive collaboration and commercialisation of state-funded research
33 international offices; 10 regional offices in Ireland
Key focus is the development and growth of Irish companies in global markets
Responsibility for FDI in food
Total Budget of €388m in 2017 - €34.5 is funding for third party bodies and €76m is own resource income from our investment portfolio –
Additional funding for human resources provided for 2018
Source: Annual Employment Survey results for each year, published in our Annual Reports. (2007-2015)
100,000
120,000
140,000
160,000
180,000
200,000
220,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Employment 2007-2016
2016
201,108
Major Milestone Achieved
Performance of Enterprise Ireland Clients 2016:
Record Jobs
61% new jobs
outside Dublin
in 2016
North West
+5%
West
+5%
Mid West
+6%
South
+5%
South East
+3%
MidEast
+2%
Midlands
+5%
North East
+5%
Dublin
+5%
Job increases inEvery Region
Exports Continue on Rising Trajectory
€18.63bn2014
€20.59bn2015
€21.60bn2016
€25,000,000
€20,000,000
€15,000,000
€10,000,000
€5,000,000
€02006 20102008 2012 20152007 2011 20142009 2013 2016
Food Industrial Int SW & Services
€21.6bn€20.6bn
€11.8bn
€18.6bn
€25 bn
€20 bn
€15 bn
€10 bn
€5 bn
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
UK Exports by Sector Trend
Food Industrial Int SW & Services
Slowdown UK Market Growth 2016/2017
Absolute value of exports is holding
Strategic Ambitions 2020
Exports +€5bn to €26bn p.a. 67% outside UK
Spend in economy +€4bn to €27bn p.a.
R&D and Innovation+50% in R&D spend to €1.25bn p.a.
Jobs +60,000 new jobs Sustain existing jobs
Top Barriers of SME DiversificationOECD, 2009
Barriers as Identified by SMEs:
• Shortage of working capital to finance exports
• Identifying foreign business opportunities
• Limited information to locate/analyse market
• Inability to contact potential overseas customers
Obtaining reliable foreign representation
• Lack of managerial time to deal with
internationalisation
• Inadequate quantity of and/or untrained
personnel for internationalisation
• Difficulty in matching competitors prices
• Lack of home government assistance/incentives
• Excessive transportation costs
Barriers as identified by OECD
member states:
• Inadequate quantity of and/or untrained
personnel for internationalisation
• Shortage of working capital to finance export
• Limited information to locate/analyse markets
• Identifying foreign business opportunities
• Lack of managerial time to deal with
internationalisation
• Inability to contact potential overseas customers
• Developing new products for foreign markets
• Unfamiliar foreign business practices
• Unfamiliar exporting procedures/paperwork
• Meeting export product quality/standards/
specifications.
Top Drivers of SME DiversificationOECD, 2009
• Growth Motives
• Knowledge-related Motives
• Network/Social Ties and Supply Chain Links
• Domestic/Regional Market Drivers
• Managers’ previous international experience
• To reduce dependence on a single or smaller number of markets
• R&D investment
• Supply Chain Control
• Social Networks/Ties
• Profit
BrexitScale through International
GrowthCompetitiveness
£
Ambition and Talent
Innovation and R&D
The Export Journey & the Challenges facing Irish companies
Sterling
Av. £0.82 in 2016
Breached £0.93
widely expected to reach parity
US policy uncertainty
Pessimistic growth forecasts
Weakening dollar
Asia & Gulf:
Geopolitical uncertainty jeopardising economic growth in key high growth markets
Ongoing threat of financial market turbulence remains
IMF warning correction in Chinese market could impact global financial markets
Over the longer run, weaker
potential growth is broadly forecast
Macro levelChallenging Global Business Environment
UK
€7.55bn
USA/CANADA
€3.74bn
N EUROPE€4.28bn
35%
17%
21%
UK is our #1 market
• 1,400+ companies with high levels of sales into UK, employ 102,000+
• 350 companies significantly exposed, employ c.25,000
UK is most often the first market of export
Client Engagement Model
Potential Exporters
Strategy
Innovation
Sales &
Marketing
People & Org
Development
Operations
Finance
Get Exporting Enquiry Form,
“Essentials of Exporting”
Online Innovation links, Excel@Innovation Series
Online Content & Tools (including short guides)*, Client
Management Development Workshops
Online Content & Tools, eMarketing Unit workshops, Excel at
Export Selling, Market Research Centre, Trade events and
missions, Brexit Web Info and Guides
Online Content & Tools – Export Start Guide
Online Content & Tools/Links
Potential Exporters
Strategy
Innovation
Sales & Marketing
People & Org
Development
Operations
Finance
“Export Development”, Mentors/Advocates, Strategic Consultancy
Grant, Co-Innovate Program
R&D Advocates, Technical Feasibility, Agile R&D, BII, Innovation
Vouchers (+H2020)
CMD, Gradhub, Mentors, Open University Offer, Key Manager,
Acumen Key Manager, GBGI, G4IG, Group Management
Development Supports, BIM
MRC, Market Scan, Internationalization Grant, Market Access Grant,
eMarketing Improvement, Foodworks Feasibility, Be Prepared,
Business Links, Prospector, Trade Fairs
Lean Start, Green Start, Lean Plus, Job Expansion Fund,
Environmental Improvement Assignment
Financial Advocate, Capital Investment Initiative, Feasibility
Excel@Growth
Attracting and Retaining Talent
Introduction to Lean Principles
Business Planning
De-risking the Innovation Process
Scenario Planning for Brexit
Managing Successful Innovation Projects
Identifying Innovation Opportunities
Hot of the Presses! - Agile Innovation Grant
A survey of 2,000 Enterprise Ireland clients in 2016 found that those who availed of innovation supports (specifically capability, funding and collaboration support) reported on average a 67% growth in global sales.
Offering fast-track approval
Streamlined online application process, Enterprise Ireland's new Agile Innovation Fund will allow companies to access
Up to 50% in support for product, process or service development projects with a total cost of up to €300,000.
https://ambition.enterprise-ireland.com/the-agile-innovation-fund
Preparation is keyLevel of perceived preparedness improving
but still medium to low
1,500 completed Brexit Score Cards
Sectors such as construction, engineering,
other manufacturing, software/ICT, other
services
IMW 2017 survey ‘‘62% had taken ‘no
measures to respond’ past 6 months’’
New Brexit SME
Score card Brexit
Zone
Take action - Uncertain times need certainty of purpose
Informing strategy
Are you certain you understand your exposure and options based on information currently available?
• Assign responsibility for Brexit strategy to senior member of your team
Financial management
Are you certain your financial management is strong enough? Have you a treasury policy? How often do you review cashflow? Sterling cashflow? Are you communicating effectively with your bank?
• Get access to financial and currency management expertise
Take action - Uncertain times need certainty of purpose
Cost Competitiveness
Are you certain you are sourcing effectively and efficiently?
• Implement best practice in supplier management and management of logistics
Are you certain your operation is as efficient as possible?
• Implement lean principles
Innovation
Are you certain you are investing enough in innovation?
• Look to innovate in your processes and products
Markets
Are you certain you are optimising sales opportunities
• Look to diversify products, channels and markets (both vertical and geographical)
Responding to the challenge of Brexit
BREXIT increases the urgency to intensify what we were already doing
3 Pillars:
Promoting the ‘Irish Advantage’
Global buyers buy Irish innovation not because the like us!
It is because Irish innovation is pioneering, productive and proven.
This is the ‘Irish Advantage’.
We will continue to promote innovative Irish products and services to global buyers:
- promoting the strengths of the “Irish Advantage”
- highlighting the advantages of sourcing from Ireland
On Trade Missions, Inward Buyer Visits and by connecting with Enterprise Ireland’s network in the marketplace.
Thank You
Contact:
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