EDITOR’S CHOICE CSM AGENCY
What’s stalling Ireland’s best manufacturers in their push for international growth
Ireland’s manufacturing sector remains one of Europe’s most reliable engines of growth
M
anufacturing contributes 39 per cent of Ireland’s GDP, among the highest in Europe, and supports more than
270,000 jobs. Exports reached 208 billion euro in 2022, led by pharmaceuticals, chemicals and advanced engineering. Ireland ranks third in the EU for manufacturing productivity per worker. Yet behind that strength lies a quieter challenge.
to translate domestic success into consistent international growth. The AIB Manufacturing PMI has reported weak export orders for more than a year, even as domestic production remains steady. The issue is not capability or ambition but structure and adaptation.
A USEFUL COMPARISON Germany and South Korea offer helpful context. Germany has long been one of the world’s manufacturing powerhouses, exporting over one trillion dollars of goods annually. Yet its 2018, and its global export market share has slipped since 2021. South Korea, another highly industrialised economy, faces similar headwinds. Its manufacturing PMI dropped to 47.7 in May new orders.
In both countries, technical expertise remained exceptional, but growth slowed when commercial systems failed to evolve as quickly as production. Ireland’s manufacturers face a similar moment. The next phase of growth will depend less on how much they can produce and more on how well they can systemise the commercial engines that carry that production into new markets.
HITTING THE CEILING: WHY IRELAND’S MANUFACTURING MOMENTUM IS SLOWING Ireland’s manufacturing base is resilient, yet growth patterns show early signs of slowing. The latest AIB Manufacturing PMI has
reported weak export orders for over a year. capability. Irish manufacturers are among the most advanced in Europe, but the nature of
by operational excellence, the next challenge is converting that excellence into repeatable international expansion. Irish manufacturers excel in precision, quality and reliability. They employ a highly educated workforce, nurture exceptional engineering talent and maintain global networks. These strengths have built Ireland’s reputation for excellence, but in global markets, they are no longer differentiators. Rivals now match quality and those that scale their commercial systems with the same precision as their Production.
THE LEADERSHIP TIME-HORIZON PROBLEM Many of Ireland’s manufacturers are founder-led or guided by long-serving Managing Directors. Studies in the UK and Ireland show the average The risk is not only ownership transition but knowledge transition. Networks and relationships that once fuelled growth often reside within these leaders. Without deliberate institutionalisation, those systems fade. The next generation inherits strong facilities and capable teams but less clarity on how the business grows in this new age with new challenges.
10 November/December 2025 Irish Manufacturing
EXTERNAL HEADWINDS Global competition adds to the pressure. Lower-cost producers in Central and Eastern Europe are capturing price-sensitive segments, while manufacturers in Asia are setting new benchmarks in automation and AI. PwC’s AI in Operations report found that while three- quarters of Irish manufacturers recognise the importance of digital transformation, most remain in early adoption. Many have invested in production technology but fewer have extended that intelligence into forecasting, pricing, or customer engagement. This is the ceiling Irish manufacturers are starting to hit: operational strength without commercial scalability.
OVERCOMING THE CONSTRAINTS OF A REACTIVE STRATEGY AND INFLEXIBLE STRUCTURE The challenges limiting international growth are not about talent or technology. They stem from and precision, but those same systems can make reactive strategies and structures that prioritise stability over speed.
www.irish-manufacturing.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44
