The Export Journey & Enterprise Ireland Supports Garrett Murray Head of Potential Exporters Department
Global Ambition video
Enterprise Ireland – What we do Enterprise 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
Performance of Enterprise Ireland Clients 2016: Record Jobs Major 2016 Milestone 201,108 Achieved 220,000 200,000 180,000 160,000 140,000 120,000 100,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Employment 2007-2016 Source: Annual Employment Survey results for each year, published in our Annual Reports. (2007-2015)
Job increases in Every Region North West +5% 61% new jobs North East +5% outside Dublin West Midlands +5% +5% in 2016 Dublin +5% Mid East +2% Mid West +6% South East +3% South +5%
Exports Continue on Rising Trajectory €25 bn €25 ,000,000 €21.6bn €2 0.6bn €20 bn € 18.6bn €2 0,000,000 2016 €21.60bn €15 bn € 15,000,000 € 11.8bn 2015 €20.59bn € 10,000,000 €10 bn €5 ,000,000 €5 bn 2014 €18.63bn €0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Food Industrial Int SW & Services
Slowdown UK Market Growth 2016/2017 Absolute value of exports is holding UK Exports by Sector Trend 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Food Industrial Int SW & Services
Strategic Ambitions 2020 Exports Jobs +€5bn to €26bn p.a. +60,000 new jobs 67% outside UK Sustain existing jobs R&D and Innovation Spend in economy +50% in R&D spend to +€4bn to €27bn p.a. €1.25bn p.a.
Top Barriers of SME Diversification OECD, 2009 Barriers as Identified by SMEs: Barriers as identified by OECD member states: • Inadequate quantity of and/or untrained • Shortage of working capital to finance exports personnel for internationalisation • Identifying foreign business opportunities • Shortage of working capital to finance export • Limited information to locate/analyse market • Limited information to locate/analyse markets • Inability to contact potential overseas customers • Identifying foreign business opportunities Obtaining reliable foreign representation • Lack of managerial time to deal with • Lack of managerial time to deal with internationalisation internationalisation • Inability to contact potential overseas customers • Inadequate quantity of and/or untrained • Developing new products for foreign markets personnel for internationalisation • Unfamiliar foreign business practices • Difficulty in matching competitors prices • Unfamiliar exporting procedures/paperwork • Lack of home government assistance/incentives • Meeting export product quality/standards/ • Excessive transportation costs specifications.
Top Drivers of SME Diversification OECD, 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
The Export Journey & the Challenges facing Irish companies £ Scale through Innovation Ambition Brexit Competitiveness International and R&D and Talent Growth
Macro level Challenging Global Business Environment Ongoing threat of Over the longer Asia & Gulf: financial market Sterling run, weaker US policy Geopolitical turbulence remains uncertainty Av. £0.82 in 2016 potential growth uncertainty IMF warning Pessimistic growth is broadly forecast Breached £0.93 jeopardising correction in forecasts economic growth in widely expected to Chinese market key high growth Weakening dollar reach parity could impact global markets financial markets
UK is our #1 market • 1,400+ companies with high UK UK 35% €7.55bn levels of sales into UK, employ 102,000+ N EUR N EUROPE OPE 21 % €4.28bn • 350 companies significantly exposed, employ c.25,000 USA/CANAD USA/CA ADA 17% €3.74bn UK is most often the first market of export
Client Engagement Model
Potential Exporters Get Exporting Enquiry Form, Strategy “Essentials of Exporting” Innovation Online Innovation links, Excel@Innovation Series People & Org Online Content & Tools (including short guides)*, Client Development Management Development Workshops Online Content & Tools, eMarketing Unit workshops, Excel at Sales & Export Selling, Market Research Centre, Trade events and Marketing missions, Brexit Web Info and Guides Online Content & Tools – Export Start Guide Operations Finance Online Content & Tools/Links
Potential Exporters “Export Development”, Mentors/Advocates, Strategic Consultancy Strategy Grant, Co-Innovate Program R&D Advocates, Technical Feasibility, Agile R&D, BII, Innovation Innovation Vouchers (+H2020) CMD, Gradhub, Mentors, Open University Offer, Key Manager, People & Org Acumen Key Manager, GBGI, G4IG, Group Management Development Development Supports, BIM MRC, Market Scan, Internationalization Grant, Market Access Grant, Sales & Marketing eMarketing Improvement, Foodworks Feasibility, Be Prepared, Business Links, Prospector, Trade Fairs Lean Start, Green Start, Lean Plus, Job Expansion Fund, Operations Environmental Improvement Assignment Finance 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 key Level of perceived preparedness improving New Brexit SME but still medium to low Score card Brexit Zone 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’’
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: potentialexporters@enterprise-Ireland.com or garrett.murray@enterprise-Ireland.com
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