InBus_Win09_1-55:InBusiness 1-61 11/12/2009 16:19 Page 42
FEATURE | Exports
imports fell by 9 per cent. The data shows that is expected, there will be a pick up in
seasonally adjusted exports were just over traditional exports. Unless the competitiveness
€7.5bn, while imports fell to almost €3.7bn. adjustment continues, particularly in relation
Success in the UK and in the longer-term, the to the traditional firms, it’s hard to see them
US, is critical to the survival of most Enterprise enjoying any kind of growth,” says Brian
Ireland clients, according to Gerry Murphy, Devine, Chief Economist, NCB Stockbrokers.
Director of International Sales and Partnering at In addition, industrial production has also
the state agency. “The priority for exporters in been growing this year because production at
2009 was customer retention and securing chemical firms is up and continuously rising –
greater value from existing customers. Weak up 30 per cent year-on-year. On the
currencies in both sterling and dollar markets downside, industrial output in the economy
posed a further difficulty for companies. Food on the whole has been consistently flat
exports to the UK were particularly affected by throughout the year. However, a general
the fall in sterling while construction products easing is starting to be seen in the pace of
and services exports to the UK also fell decline in sectors such as machinery
significantly following the dramatic decline of equipment and food and beverages, so it is
that sector in 2009. All exporters to the UK hoped that when the strong pharma sector is
will require a strong cost reduction strategy combined with the easing in the others, Mary Meehan, Manager, International Trade
and tougher qualification of opportunities to improvements across the board will be seen. Services, Chambers Ireland.
conserve resources in 2010,” he warns. “What we are seeing on the exports side is
Meehan agrees. “The fall in the value of that manufacturing never really declined at all “While data for 2009 is not available yet, it
sterling is a significant challenge, particularly and is just about level,” explains Ronnie is expected that total exports of Irish owned
for exporters who are focused on the UK O’Toole, Chief Economist at National Irish companies will show no growth in 2009 due to
market and compete against UK firms in other Bank. “When you see a sharp decline declines of both food, construction and some
markets,” she says. “Sectors such as the food elsewhere in Europe of around 20 per cent, engineering exports to the UK,” says Gerry
and beverage sector have fallen by 7.3 our exports have been broadly level. There is Murphy. “However, other sectors such as
percent reflecting the consequences of the obviously a big mix in there, exports to the medical devices, life sciences, international
appreciation of the euro relative to sterling as UK are very labour intensive and a lot of Irish services, computer software and cleantech are
well as difficult demand conditions in the firms are in that and as a result are down holding up well despite the international
UK market.” around 13 per cent. A lot of the decline can economic downturn and will go some way to
be attributed to the construction sector and balancing the declines in the traditional sectors.”
POSITIVE PERFORMANCE ancillary industries, which are likely to face Undoubtedly many firms are holding their
However, while the traditional sectors of considerable problems for some time to come. breath and hoping the New Year brings some
exports are being hit the hardest, other Irish However, taking everything into account, we positive news. However, many are already
sectors are performing well. In Irish exports have done quite well on the exports side.” seeing small signs of recovery and remain
there are essentially two totally different hopeful that next year will bring a pick up in
markets; the first being pharmaceuticals, OPPORTUNITIES the export market.
which are growing at 20 per cent year-on- Although growth is declining across all “I think there has been some stabilisation in
year rates while the other more traditional markets there is still scope for growing new the marketplace in terms of how consumers
sectors – including food and drink – are sales for companies that have the resources to are behaving,” says Aidan Cotter. “There has
declining by between 10-20 per cent at year- invest in up and coming markets. During been a very clear shift as shoppers seek
on-year rates. 2009, Enterprise Ireland intensified its drive to bargains and value. People are also using up
“While traditional sectors in food and drink identify and support the entry of appropriate to four outlets per week for their weekly shop
are still contracting, this is due to the fact that clients to the selected markets of China, Brazil, rather than one; a significant pick up has also
these sectors are much more labour intensive Russia, The Gulf, India and Japan. In particular been seen in trips to discount outlets. But I
and have much more exposure to sterling so significance is Enterprise Ireland’s work with think a lot of that has stabilised now as
those firms are in a lot of trouble. It’s hard to the construction and services sectors in the consumers start to become more confident
figure out what is going on in the UK as it Gulf States. about the future internationally. The world dairy
looks like the market is strong, but the official It has not been all doom and gloom. As market collapse is going to lead to a significant
figures are not showing that yet. Exports to well as pharmaceuticals, exports in medical reduction in our exports this year but it is already
the US are actually up whereas they are well device and life sciences are continuing to clear that has reached a turning point so we
down to the UK as would be expected. perform well. In fact, during the first five should see a pick up in that market next year.
Whether exports start to show strong growth months of the year, exports rose by 2 per cent Hopefully the economic downturn will not have
next year is really dependent on world to €36.8bn, a jump that was led by sharp so severe an impact next year as it did this year.
growth. That is going to be the major driver rises in medical, pharmaceutical and life The indications are looking towards some
and if sterling comes back towards 80, which sciences exports, according to CSO figures. improvement in the coming year.”
42 InBusiness Winter 09
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