Dáil Éireann Debate, Wednesday - 20 February 2013
148. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the action he will take to reverse the recent decline in industrial production; and if he will make a statement on the matter. [3565/13]
View answerThere are a number of indicators used to measure the performance of the manufacturing sector. It is unwise to concentrate solely on one single set of statistics and a comprehensive view of the sector requires an assessment of all relevant indicators, especially over a longer period, as erratic fluctuations can occur from time to time.
The key data source for Industrial Production is the monthly Central Statistics Office publication on Industrial Production and Turnover. The most recent release, published earlier this month, covers the period up to December 2012 so we now have full 2012 data. This latest information shows that production increased by 11% in December last over the previous month (seasonally adjusted basis) and this helped overcome a poor performance during some earlier months of 2012. The index of Industrial production now stands 2.8% higher than its level at the end of 2011, which represents a very solid recovery.
In relation to Purchases, the reputable NCB Purchasing Managers Index is a composite indicator designed to provide an overall view of activity in the manufacturing sector of the Irish Economy and also acts as a leading indicator for the whole economy. After a period of contraction between November 2011 and February 2012, this Index has recorded 11 straight months of consecutive growth from March 2012 to January 2013. The Index now stands at about 50% higher than its low point in early 2009.
Regarding export performance, the picture is also positive. It is heartening that exports of manufactured goods are continuing to rise despite challenges in many of our key markets. Final 2012 export data published by the Central Statistics Office just last week showed that goods exports increased by 1% over 2011, reaching a total of €92bn, the highest figure since 2002.
Employment in the sector had suffered a major shock in 2008-2010 when approximately 50,000 jobs were lost in manufacturing. However, numbers have stabilised over the last two years and there are now 205,700 people directly employed in manufacturing (both full-time and part-time), and a similar number of people are employed indirectly.
To promote job opportunities in this sector, the Action Plan for Jobs 2012 included several specific initiatives to develop the sector. The Manufacturing Development Forum, which I established last year, has facilitated this process. I asked Forfas to develop a new Strategy for Manufacturing up to 2020 and this study is currently being finalised. A new report on the Skills needs of the sector, also being finalised at present, will also be a key driver in pursing those specific needs.
A number of steps have already been taken to enable indigenous manufacturing firms to specialise, develop skills and value and scale up including:
- The launch of the new Potential Exporters Division in Enterprise Ireland, to support more indigenous companies to trade in foreign markets,
- Enterprise Ireland’s Lean Business Offer enables manufacturing clients increase productivity and competitiveness,
- The Launch of a new Development Capital Scheme, aimed at addressing a funding gap for mid-sized, high-growth, indigenous companies,
- Improvements to the R&D tax credit scheme.
On wider Government actions, we have been systematically identifying those areas of policy it can influence to bring about cost reductions or provide supports to business. The Action Plan for Jobs 2012 included an extensive range of measures across Government which will help to improve competitiveness and support job creation across all sectors of the economy, including the industrial and manufacturing sector. Further measures to improve our competitiveness will be contained in the 2013 Action Plan for Jobs which I am currently finalising on behalf of the Government and which will be published in the coming weeks.
All these initiatives will help build a solid future for manufacturing in Ireland so that we are well positioned to respond to an upturn in global markets.
