merrion street

The Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, today [Tuesday] announced that he has asked industry experts from the manufacturing sector to develop a new plan for the manufacturing sector within six months.

The Minister has established a Manufacturing Development Forum, tasked with driving the development of the manufacturing sector which employs 230,000 people today. The Minister also articulated the clear commitment of the Government to the manufacturing sector, which he described as crucial to the economic future of the country.

The Forum will comprise predominantly private sector figures, including senior executives in major manufacturing companies in Ireland, both indigenous and multinational. Major sectors including food, engineering and health/life sciences will be represented, as will Government development agencies Enterprise Ireland, IDA and Forfas and academia. The group will be tasked with:

·        driving the development of policy actions to be included in the plan on manufacturing to be published before the end of 2012

·        facilitating open and frank exchange of views between representatives of industry and relevant Government Departments on obstacles in the way of the development of the manufacturing sector

Minister Bruton said:

“Central to the Government’s plan for jobs and growth is our determination to create a powerful engine of manufacturing industry. We have a strong base of high-end, world-leading multinational manufacturing companies operating in a range of sectors – we must aspire to replicate the success of international examples like the mittelstand companies in Germany, by developing this level of success in the indigenous economy also.

“Manufacturing has contributed significantly to Ireland’s economic development in the past – and is a crucial element of Ireland’s economic future. It is a key driver of innovation and technological advance, is an important source of jobs for people at all skills levels and generates many additional secondary jobs. We have strengths in a range of sectors including biopharma, pharma, medical technologies, food, engineering and electronics.

“I have spoken to many people in the manufacturing sector over recent months. They firmly believe in a strong future for the sector here and we need to take appropriate action to sustain the employment we have in manufacturing and to support its future growth in jobs and exports.

“The Action Plan for Jobs set out the ambition to have 100,000 more people in work by 2016, of which 20,000 are to come from manufacturing. This will not happen without strong, concerted action from Government and the private sector working together. I am convinced that the set of actions I have announced today will be the start of ensuring that we retain and create the jobs in manufacturing that we need”.

Minister Bruton emphasised that his Government is committed to ensuring that the environment for manufacturing is as competitive as possible, including aspects from skills to infrastructure, energy and the planning process.  Initiatives recently put in place which will assist this sector include -

·        the launch of the new Potential Exporters Division in Enterprise Ireland, to support more indigenous companies to trade in foreign markets,

·        design and launch of a new Development Capital Scheme,  aimed at addressing a funding gap for mid-sized, high-growth, indigenous companies,

·        implementation of the employment and enterprise support measures outlined in Budget 2012, namely the improved R & D Tax Credit regime, extension of the Corporation tax exemption for new businesses and a  Foreign Earnings Deduction to support exports to fast -growing markets,

·        a series of initiatives to open up new markets for exporters, including an intensive programme of Ministerial-led trade missions and a series of changes in Budget 2012 to make it easier for companies to put staff on the ground in target markets

NOTES TO EDITORS

Manufacturing Development Forum

The Manufacturing Development Forum:

·        Will act as a vehicle for the open and frank exchange of information and views between manufacturing representatives and relevant Government Departments and  development agencies on issues concerning the development of the sector as they arise;

·        Will help to raise awareness of the continuing importance of manufacturing to Ireland’s future economic development and of manufacturing as a viable and rewarding career option;

·        Will provide expert insights into the development of the Long-term Vision and Strategic plan for Manufacturing being led by Forfas (see details below) and the prioritisation of specific actions aimed at addressing the key challenges and which would provide input to the Action Plan for Jobs.

·        Will act as a 'clearing house' to identify and address obstacles to the implementation of actions required to develop the manufacturing sector.

Its chair and membership will is set out in the table below at the end of the press release.

Long Term Vision and Strategic Plan for the Manufacturing Sector

Minister Bruton has asked Forfas, along with the Forum, to undertake a study to revisit the role of manufacturing in Ireland’s economy – assessing where it stands today and to set out a strategic vision for 2020 aimed at reversing the current employment trend and enabling a return to growth.  This research will set out set out the policy actions needed to support a sustainable and competitive manufacturing sector to 2020 in the context of global trends, the on-going transformation of the sector and the existing issues facing the sector in Ireland.

Information on the manufacturing sector

Employment in manufacturing has declined from levels of 299,600 in 1997 to 239,700 today, and – as has been the case for many developed economies - its contribution toward total employment has fallen (from 22% in 1997 to 13% in 2011).  On a more positive note, the value of Ireland’s merchandise exports has almost doubled since 1997. However, the data doesn’t reflect the changing nature of activities within firms – for example, many more firms are investing in Research, Development and Innovation, in productivity improvements and in reaching new markets. Although it is a very challenging and internationally competitive environment, there is considerable potential for the manufacturing sector in Ireland.

Action Plan for Jobs 2012

Specifically in the manufacturing sector, the Action Plan for Jobs 2012 commits the Government to:

7.1.1 Articulate its clear commitment to manufacturing in Ireland and elaborate on the range of initiatives and supports that will be put in place to demonstrate this commitment.

(Department of Jobs, Enterprise and Innovation).

7.1.2 Establish a Manufacturing Development Forum (MDF) to assist the Government in identifying the needs of manufacturing enterprises and to progress a transformation agenda in this area.

(Department of Jobs, Enterprise and Innovation).

7.1.3 Seek new investment into manufacturing. IDA Ireland will continue to attract new investment into manufacturing, particularly in growth areas identified above; the other enterprise development agencies will support new indigenous start‐ups and will seek to maximise the employment in Ireland from indigenous enterprises with global operations.

(IDA, Enterprise Ireland)

7.1.4 Work actively with existing indigenous and overseas manufacturing enterprises to support a transformation agenda aimed at technology deepening and productivity growth. IDA Ireland and Enterprise Ireland have a range of programmes in place to assist enterprises with this transformation. We will complete evaluations of all agency programmes and schemes to ensure that they are adequately addressing the needs of today’s manufacturing businesses.

(IDA Ireland, Enterprise Ireland, Forfás)

7.1.5 Examine financial supports for manufacturing in the context of negotiations on EU State Aids. Ireland will seek to put in place the optimal arrangements for support of the manufacturing sector in negotiations at European level.

(DJEI, IDA Ireland, Enterprise Ireland)

7.1.6 Undertake a detailed assessment of manufacturing skills needs and use the new structures for training and skills development to address both the immediate needs of the manufacturing sector and to anticipate the longer term needs of the sector

(Forfás,EGFSN)

7.1.7 Evaluate the supports provided for in‐company research and innovation and fine‐tune the supports offered based on this review. We will also target investment in higher education and other public research into areas of direct relevance to the enterprise base including the needs of manufacturing enterprises. Advanced manufacturing will be specifically addressed in implementing the Government’s priority research areas.

(Research funders and Prioritisation Action Group)

7.1.8 Develop a long term vision for the manufacturing sector and put in place a strategic plan that will help to realise this vision. The Manufacturing Development Forum will be instrumental in this regard.

(Department of Jobs, Enterprise and Innovation, Forfás)

ENDS

For further information please contact:

Conor Quinn, Press Advisor to Minister Bruton, Tel: +353 1 631 2218, +353 87 374 3783, email:

.

Press Office, Department of Jobs, Enterprise and Innovation, Tel: +353 1 631 2200.

ENDS Name  Company  Sector

Cormac Mac Donncha  Ingersoll Rand  Diversified Engineering

Brendan Smith  Bimeda  Pharma

Seamus Kilgannon  Schivo  Engineering/ Construction

Paul Neville  Data Display  ICT Hardware

Michael Mc Loughlin  ProSys  Specialised pharma equipment

Pat Beirne  Mergon Ltd  Technical  mouldings

Tom Kelly  EI  N/A

Pauric Finn  IDA  N/A

Declan Hughes  Forfas  N/A

Larry Murrin  Dawn Farm Foods  Food Sector

Gerry Byrne  UCD  Academia

ENDS