The Forfás Strategy for the Manufacturing Sector, which I commissioned, and which was published in April last, identified that an additional 20,000 jobs can be created in the sector by 2016. A complementary report on the skills needs for the sector, which I had commissioned at the same time, was published by the Expert Group on Future Skills Needs and Forfás and it identified a series of actions to enhance skills in the sector.
Arising from both the Strategy and the Skills Report, there are now a range of initiatives in hand by my Department and relevant Agencies to drive the 2016 target, with key actions from both reports having been incorporated into the Action Plan for Jobs for 2013 and 2014. A key initiative which is underway is the development of a National Step Change initiative to strengthen Ireland’s manufacturing base across all firms. For 2014 it is intended to undertake the following:
- Support 130 indigenous companies with an initiative to improve their productivity as part of the National Step Change for Manufacturing;
- Deliver a transformation programme across 70 foreign-owned manufacturing and services companies in Ireland to achieve technology uplift, skills enhancement, energy improvements and investment in new facilities and equipment, and
- Support the adoption of LEAN manufacturing and other productivity enhancing measures across a wide range of enterprises including relevant micro-enterprises.
In relation to that Skills report, it identified some key areas where up-skilling will be required, including shortages of toolmakers, a growing future demand for polymers technicians, and up-skilling requirements for machinists and a range of other specialisms. On foot of these recommendations, work is underway by key stakeholders such as Solas, Skillnets and other educational bodies to implement a range of specific skills actions. In addition, a comprehensive review of the Apprenticeship system has just been completed by the Department of Education and Skills. Its recommendations take account of the major changes to the structure of the economy and the nature of employment since the current system of Apprenticeships was implemented in early 1990s. A consultation process with stakeholders is now underway to examine how implementation of this report can be progressed as quickly as possible. In relation to overall employment in the manufacturing sector, when account is taken of indirect jobs, the sector now supports over 400,000 employees.
With regard to the Services sector, this accounts for two thirds of total employment in Ireland. While the majority of service firms are not supported by the State, in respect of agency supported companies, the job creation trend is very positive. The various Action Plans for Jobs, including the recently published Action Plan for Jobs 2014 have included a range of sectoral initiatives to facilitate new and established services companies to grow, including International Financial Services, Business Process Outsourcing/Shared Services, Education Services, Retail and Wholesale, Tourism, Construction Services and ICT Services.
In addition, the Medium Term Economic Strategy, published last year, has identified the Services Sector as a key driver of job creation and growth. That Strategy highlights the opportunities in a range of sectors. It is notable that the latest employment data shows that, across all sectors, an additional 61,000 people were in work at the end of 2013, compared with one year ago.
