The survey covers the client base of Enterprise Ireland, IDA
Ireland, Shannon Development and Údarás na Gaeltachta and the total value of
exports reported is €126bn compared with €151bn as reported by the Central
Statistics Office (CSO) for 2009. In current price terms, exports increased from
€105bn in 2000 to €151bn in 2009 but there was no net jobs growth in the sector.
The difference of €25bn between the Forfás total for 2009 and
the CSO total is accounted for by tourism, transport (mainly airlines e.g
re-exports, Irish financial institutions' foreign earnings and some financial
transactions at Dublin's International Financial Services Centre (IFSC) not
covered in the survey,
including tax haven activities.
Export earnings for Irish-owned firms was €11.5bn and the
earnings for the foreign sector was €114.4bn. Indigenous exports accounted for
8.7% of the total.
Services accounted for €3bn or 28.6% of indigenous exports
and 5.3% of total tradeable services exports of €60bn.
Average pay per employee was 20% higher in the foreign sector
than in Irish-owned firms.
The indigenous food and drink sector saw sales decline by 10.7%
in 2009 and exports by 15%. The euro exchange rate with sterling was a
contributing factor to this result. Exports in traditional manufacturing also
saw a decrease of 15.5% in 2009 over 2008. In contrast, the relatively small
sector of modern manufacturing & energy reported a small growth in exports in
2009 of 2% on the previous year.
Export growth among Irish-owned internationally traded services
was over 7% during 2009. Exports of information, communication & computer
services among Irish-owned firms were strong, with growth of almost 12% between
2008 and 2009 compared with 2.8% for the period 2000-2009. While the business,
financial and other services sectors also saw growth in 2009 with 5.6% over 2008
and giving an increase of almost 14% for the period from 2000-2009.
Export growth of 2.6% per annum over the period 2000-2009 for
all sectors compares with the 2.3% per annum growth in total sales among
On a per-annum basis between 2000 and 2009, export growth had
been higher in internationally traded services sectors (8.7%) compared to the
manufacturing industries (0.9%) though this has been from a much lower base.
Though in monetary terms, manufacturing exports at €8bn are almost two and half
times that of exports in internationally traded services sector at €3.2bn.
The food and drink sector exported almost 47% of output in
Payroll costs per employee in Irish-owned manufacturing and
internationally traded services sectors averaged at €47,700 in 2009,
representing an increase of 5.8% per annum over the period 2000-2009. The broad
manufacturing sectors have an average payroll costs per employee of
approximately €43,000, compared to the internationally traded services sector
which had an average payroll cost per employee of €60,500 in 2009. Payroll costs
in business, financial & other sectors were highest at €63,000 in 2009.
The rates of increases in payroll costs per employee in both the
internationally traded services and manufacturing sectors have been relatively
close, at 6.7 and 5%, respectively between 2000 and 2009.
Total sales of agency assisted foreign-owned manufacturing and
internationally trading services companies declined by 7% in nominal
terms and amounted to €119bn in 2009.
Manufacturing & other industry sectors accounted for €65bn of
this total which equates to almost 55% of all sales in foreign-owned
Chemicals are the largest sector on the manufacturing side and
reported a 16% increase in sales from 2008 and stands at €39bn in 2009.
The second largest sector is computer & electronics and here
there was a significant decrease in sales of 50% to €10bn.
Medical Devices have shown steady growth over the course of this
survey and 2009 was another good year for that sector showing an increase of
Between 2008 and 2009, there was a decline in the foreign-owned
food & drink sector (Guinness and Irish Distillers are included in this data) of
14% with sales totalling €5.2bn. Over the course of this survey between
2000-2009 there has been a per annum increase of 5% in this sector.
The international services base reported a decrease of 4.5% in 2009. However services have grown 7.8% per annum between 2000
and 2009 and now represent 45% of total sales by foreign-owned client
firms. The information, communication and computer sector had sales of €51bn – a
decrease of 4.7% over 2008.
The survey says in terms of employment it is interesting to note that there
are some areas where sales and employment levels are disproportionate. The
chemicals sector accounts for 33% of the reported sales, but it comprises
only 16% of the employment in foreign-owned companies in Ireland. In
traditional manufacturing and medical devices sales represent less than 10% of total sales but both sectors account for over 31% of employment.
There is a stronger correlation in the services sectors between
share of sales and numbers employed. Overall Services accounted for 45% of sales and
35% of employment in 2009.
Manufacturing sectors accounted for 55% of all exports in
foreign-owned companies in Ireland in 2009. Manufacturing exports by foreign companies
declined between 2008 and 2009 by 10% – - a decline that was driven mainly by the
computer, electronic and optical products sector. However during the period 2000-2009 there has
been a per annum increase in exports of 3% during this period.
Exports were down significantly in 2009 for the computer &
electronics sector by 50%. Traditional manufacturing also saw a decline in exports in 2009
of 27% in what was a very difficult year for business.
In the Internationally Traded Services sector exports account
for the majority of sales and have increased from 92% in 2000 to almost 96% in
2009. Overall exports decreased by 4% in 2009 over 2008 and now stand at
€51.8bn. There has been an increase of exports in the Internationally
Traded services sectors during the period of this survey 2000-2009 of over 8%.
Payroll costs account for around 12% of the reported
value added of foreign manufacturing and internationally traded services. Payroll costs
comprise almost half of all value added in the Traditional Manufacturing sector, but 7.6% of the chemicals sector.
Total payroll costs per person employed averaged €59,200 in
2009, representing an increase of 5.7% per annum in nominal terms over the period
2000-2009. Payroll costs per employee are roughly on a par in both the international services
sector and the manufacturing sector; averaging €62,800 and €57,200 respectively
The chemicals sector has higher average payroll costs per capita
than other manufacturing sectors (€71,200); however, it has the lowest ratio of payroll
cost as a%age of value added (7.6%).
Irish food and drink exports fell in both 2008 and
2009 while the sector has become increasingly important for Germany.
Meanwhile, the UK has also seen exports grow and the balance of trade
with Ireland, may turn positive for it.
Germany became a net exporter of food and drink for the first time
according to modern trade data.
While exports grew 12% in 2008 and dipped by 5% in
2009, exports as a ratio of output have grown from 20% in 2000 to 26% in
Germany is Europe's second biggest food and drinks
the food and beverage industry is the fourth largest industry sector
UK food and drinks exports have grown
for five straight years and Ireland is its biggest customer.
UK food and drinks exports grew by more
than 5% in 2009 when Ireland's dipped by 15%.
Irish food agency Bord Bia has said the
competitive threat on the Irish market is highlighted by rising food
imports which on a per capita basis have increased by 50% since 2000 to
€1,070 in 2007, with growth strongest in the meat, vegetable and
prepared foods categories. In terms of meat, strongest import growth has
been evident in pigmeat and poultry putting significant pressure on
local processors to maintain a viable business on the Irish market. It
is estimated that as much as 90% of poultry and 60% of pigmeat sold at
foodservice level consists of imported products.
UK supermarket giant Tesco accounts for
25% of the Irish retail market.
Ireland is an increasingly important
market for British food/drink exports, accounting for 27% of total
earnings. Imports of food and drink from the UK topped €2.99bn in 2009,
an increase of 6%.
There is a positive trade balance for Ireland of about €500m but it's
Total food & drink exports from the indigenous sector
were valued at €5.4bn in 2009, €6.3bn in 2008, €6.4bn in 2002 and €4.8bn in
There are 45,000 directly employed in the mainly foreign-owned
chemical/medical devices sectors; there are about 47,000 directly
employed in the Irish food and drinks sector.
Ireland: A "smart" economy in food better than pie-in-the-sky