14% increase in staff targets BRICS countries as part of Action Plan for Jobs focus on Irish exporting companies
The Minister for Jobs, Enterprise and Innovation Richard Bruton TD has secured an increase of over 14% in the number of Enterprise Ireland staff in overseas offices in a move aimed at increasing exports by Irish companies to high-growth emerging markets and ultimately creating jobs in Ireland.
20 additional staff will be recruited locally on fixed term contracts and will be assigned to offices in key target markets including in particular the BRICS countries (Brazil, Russia, India, China and South Africa). Enterprise Ireland analysis concludes that recruitment of these staff can directly support the creation of 1200 additional jobs in Ireland and €250million in additional annual exports.
Minister Bruton sought the increase as part of the Action Plan for Jobs and its focus on building a powerful engine of Irish exporting businesses. Over the past two years the Government has introduced a range of measures aimed at supporting increased levels of exports by Irish exporting businesses including:
· Established a new Potential Exporters’ Division in Enterprise Ireland
· Put in place over €2billion worth of new credit programmes for Irish companies
· The Foreign Earnings Deduction introduced in Budget 2012 and extended in Budget 2013, aimed at incentivising companies to place staff in growth markets (in particular the BRICS) and encouraging export sales
· An intensive programme of Ministerial-led trade and investment missions. Since the Plan was launched in early 2012 the number of trade missions led by Enterprise Ireland, for example, has doubled, from an average of 8.5 (2007-2011) to an average of 17 (2012 and scheduled for 2013)
As well as the BRICS countries, the new resources will also be allocated to countries in Asia and the Middle East.
Making the announcement, Minister Bruton said:
“At the very heart of our Action Plan for Jobs is building a powerful engine of Irish business. While the multinational sector is and will remain key to our employment growth, we must also relentlessly focus on accelerating export and jobs growth among Irish exporting companies. These businesses have delivered impressive growth in jobs and exports over the past two years, with more than 3,000 jobs added in 2012 – however if we are to create the jobs we need we must build on and accelerate that trend.
“That is why we are adding over 14% to the number of Enterprise Ireland staff in overseas market, in a move targeted particularly at the BRICS countries as well as other high-growth markets outside Europe. This is part of a strategy to target export growth to these markets which has included tax incentives for companies to place ‘boots on the ground’ in these markets as well as improvements to Government supports to these companies.
“On trade missions since taking office I have seen first hand the excellent work that Enteprise Ireland and the companies it supports are doing in overseas markets. This move will mean even better supports for more companies, ultimately delivering €250million in additional exports and 1200 jobs for Ireland”.
Kevin Sherry, Enterprise Ireland Director International Sales and Partnering added “it is vital that Irish companies increase exports and their penetration into these important high growth markets and we warmly welcome this additional resource to our international drive to assist Irish companies target and capture opportunities that these markets offer. We will commence the recruitment process within the selected markets over the coming weeks and expect people to be operational by the fourth quarter”
NOTES TO EDITORS
Impact
It is estimated the deployment of the requested additional resources can drive export growth across the specified markets over and above what can currently expected to be achieved with EI’s existing resources in place. It is estimated that this incremental export growth of an additional €250m per annum by 2015 would result in an estimated additional 1,200 jobs in Ireland. This request for additional resources in selected markets is based on a clearly identified market opportunity which is matched by clear evidence of EI client demand/capability and which will result in a substantial increase in exports and resulting jobs in Ireland.
In its efforts to maximise the trade and commercial opportunities for Irish companies, the identification of this above opportunity has taken into account a number of decision factors including:
· The size of the direct geographic market, and that of proximate market locations where services may also be provided (in terms of population, demographics including proportion of middle class, GDP per capita etc.)
The presence of tariff and non-tariff barriers for targeted sectors
· Overall ease of doing business
· Strategic importance of location e.g. as a trade hub, global decision centre for purchasing etc.
· Current extent of Irish company presence in and trade with market/region
· Presence of realisable opportunities for Irish exporting sectors and demand from clients for market connectivity – validated with companies through our ongoing engagement with clients on their strategic growth plans.
Rationale
EI has carefully marshalled its resources to best target and support client opportunities and its overseas offices are reviewed annually as part of the organisation’s operational planning process to ensure that the trade and commercial opportunities for Irish companies are maximised. EI works closely with the Departments and Agencies with an overseas presence. In particular, a focus on emerging markets is a strategic priority for EI, and is reflected in the (changing) orientation of overall overseas resources.
Background to EI’s Overseas Resources
Enterprise Ireland currently has a network of 28 overseas offices located in key target international markets, all focused on the development of business from Ireland and supporting the creation and sustainment of jobs in Ireland.
Enterprise Ireland overseas offices provide a range of services to meet client needs, for example:
· Market knowledge on a sectoral basis delivered individually to clients
· Incubation and Hot-Desking Facilities (in certain markets)
· Introductions to buyers/suppliers/partners in-market
· Market intelligence such as competitor analysis, identification of professional services, signposting on regulations etc.
· Identification of knowledge/technology/supply chain opportunities and international sources of finance (e.g. VC).
· Assistance in promoting Ireland’s offer to overseas entrepreneurs and identification of prospects for the €10m Overseas Start-ups fund
These type of services, underpinned by skills and expertise (such as languages, market knowledge, sectoral knowledge, etc.) which are essential to credibly and efficiently serve client needs, are EI’s frontline in supporting and driving the Internationalisation of Irish companies.
Where EI has overseas offices, to maximise effectiveness they are co-located with DFAT and/or other state agencies wherever possible (22 of EI’s 28 overseas offices are co-located)
· Over 30% of Enterprise Ireland’s offices are based in the High Growth Markets underpinning the Government’s commitment to developing these markets.
· 13 of 28 offices are in High Growth Emerging Markets - of which 8 are in the Asia-Pac region - Enterprise Ireland has offices in all priority markets.
· EI has an office in each of the BRIC countries; Sao Paulo, Brazil; Moscow, Russia; Delhi, India; and three in China (Beijing Shanghai and Hong Kong)
· Two offices in the Gulf – Riyadh, Saudi Arabia, and Dubai, UAE
· New office opened in Johannesburg, South Africa