The Strategy for the Manufacturing Sector, which I commissioned, and which was published in April 2013, 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 it identified a series of actions to enhance skills in the sector.
Arising from the Manufacturing Strategy and the Skills Report, there are now a range of initiatives in hand by relevant Agencies to drive the 2016 target, with key actions from both reports having been incorporated into the Action Plans for Jobs for 2013 and 2014.
Developing Manufacturing was adopted as a Disruptive Reform in the 2014 Plan. One of the key actions there is the delivery of a National Step Change initiative to strengthen Ireland’s manufacturing base across all firms engaged in manufacturing i.e. small and medium-sized firms and larger multi-nationals, particularly in higher-value sub sectors such as chemicals, pharmaceuticals, medical devices and food. In addition a wide range of training and educational initiatives are underway by the relevant providers, such as Skillnets. A suite of measures designed to support industry growth across a span of sectors are set out in the new Action Plan for Jobs 2015 which I launched recently, and include encouraging entrepreneurship and supporting start-up activity, further improving our skills base, assisting our businesses to grow, improved access to finance by SMEs and developing and deepening opportunities from global investment.
As a small open economy, Ireland is impacted by global economic cycles and shifts in competitiveness worldwide. In the case of manufacturing, lower labour costs in Asia have, for many years had a significant impact on the production of lower value goods with high labour element, but Government policy has pursued the development of higher value areas. Since the advent of the recession, Ireland’s competitiveness has improved, as shown by our rise in International rankings, as various costs have been reduced. Overall trends are very positive. The Annual Employment Survey shows a rise in employment in Agency supported manufacturing companies of over 3,300 between 2011 and end 2013, (2014 sectoral data is not yet available). The latest data for Agency-supported Internationally Trading Services companies show a rise of over 14,000 in the same period. Other Services sectors in the domestic economy have shown significant growth in employment in recent years.
Both IDA Ireland and Enterprise Ireland are working with both existing and prospective new client companies especially in the manufacturing and services companies, with consequent job creation and retention, and several recent new job announcements have been in respect of companies engaged in these sectors. Just last week I officiated at the Combilift announcement which will bring 200 new skilled jobs to County Monaghan, and at the announcement of the provision of 100 services jobs in the SalesSense operation in Dundalk. On Monday last I helped launch the Lakeland Dairies initiative in County Cavan which will provide an additional 81 jobs in their new milk processing facility. The three initiatives are great examples of regional job creation.
2014 was a very productive year for expansion in both Foreign and Indigenous Agency-supported companies, with IDA having created a net increase of 7,131 jobs and Enterprise Ireland having created a net increase of 8,476 jobs in their client companies.
The Government have made great strides in addressing various issues impacting on costs for business over recent years. Maintaining and improving our competitiveness is an ongoing priority.
Innovation is a key characteristic of growing companies in both the Manufacturing and Services sectors. Enterprise Ireland, IDA and Science Foundation Ireland, provide a range of innovation and technology development programmes that deliver financial, technical and experiential support. By way of illustration, in 2013 SFI had links to 65 per cent of the jobs announced by IDA in fields covered by SFI’s legal remit.
I am very conscious of the difficulty in attracting new industry to the regional centres. For this reason I have initiated the development of new Regional Strategies, to be rolled out this year and I am hopeful that this new approach will help to reinvigorate the industrial base of areas which are away from the main urban centres. The Government are therefore committed to strong job creation in all regions of the country. This policy is already working – for example the South East region, which has traditionally very high levels of unemployment has seen its unemployment rate reduced from 19.4% to 13.7% in the last 2 years alone. The overall National Unemployment rate continues to fall and now stands at 10.5%, a dramatic improvement on the position which pertained just a few years ago after this Government took office.
