Government targets €80billion opportunity for Irish businesses – Minister Bruton

30th November, 2012

30.11.2012

5% increase in global sourcing by multinationals from Irish business would lead to €500million annual boost to Irish economy


Global supply chain of multinational companies in Ireland among initiatives targeted by new Enterprise Ireland/IDA joint team


The Government is targeting the €80billion global supply chain of multinational companies in Ireland in an effort to help Irish companies win new business, grow exports and
ultimately create new jobs, the Minister for Jobs, Enterprise and Innovation Richard Bruton TD announced today [Friday]. This is one of a series of initiatives driven by a new Enterprise Ireland/IDA senior management team established by Minister Bruton under the Action Plan for Jobs 2012.


Today’s announcement took place in Accenture, an IDA client company, which provides an example of the benefits that can be derived by Irish companies from engagement with multinationals. To date, Accenture has engaged with more than 17 Irish companies and a number have won new contracts from this engagement, including Daon, a leading Irish software
biometric identity management company.


Multinational companies based in Ireland currently source approximately €80billion in goods and services globally, of which over €11billion currently comes from Irish businesses. The joint team is targeting an increase in this figure in 2013 through measures including:


·       
Identify 65 multinational companies, which offer particular potential for Irish companies;

·        Develop a Joint Strategy by Enterprise Ireland and IDA to target these companies;

·        Increased participation by EI clients on inward itineraries by IDA companies;

·        Enhanced programmes to support EI clients capability to meet needs of global corporations;

·        Additional engagements targeted with key procurement decision-makers within 65 companies.

Aside from global supply chains, the other two major areas targeted are attracting international start-ups and mentoring (see below).

Making today’s announcement, Minister Bruton said:

“A key part of the Government’s plan for jobs and growth is ensuring that we derive more benefit, as an economy, from the amazing group of world-leading multinational companies that have located operations in Ireland.

“Targeting increased links between these multinationals and our innovative Irish exporting companies can achieve two important goals: firstly, it will open major opportunities for Irish companies to secure more business and exports as part of an €80billion global supply chain; and, secondly, it will help us attract more investment from multinationals, by making the capabilities of Irish companies into a key selling point. Even a 5% increase in global sourcing by multinationals from Irish companies would lead to annual benefits of over
€500million for Irish companies. I am determined to ensure that ambitious targets are set and met for this important initiative.


“In the short time that this joint team has been in existence it has made significant progress. Necessary research has been done, plans have been concluded and initial actions have been
developed, with major benefits to both Irish companies and multinationals as we can see here today in Accenture. The next step now is to build on this progress with a comprehensive strategy to target growth, which is what will happen in 2013. I commend Barry, Frank and all at IDA, Enterprise Ireland and participating companies for their major work on this initiative. I am determined to ensure that in 2013 and subsequent years we will see increasing benefits for the Irish economy and in particular the jobs and growth we need”.


IDA CEO Barry O’Leary said: “IDA client companies work with a range of Irish suppliers and sub-suppliers across a range of sectors. IDA Ireland is committed to acting as an intermediary to create even more of these sourcing partnerships in the future. We are confident that as Foreign Direct Investment grows in Ireland, there will be significant opportunities to increase sourcing relationships between foreign multinationals and indigenous supply companies’’


Enterprise Ireland CEO Frank Ryan said: “Enterprise Ireland would encourage more Multinational Companies as we have seen here today with Accenture, to engage with world class Irish companies and get a sense of the fantastic products and services that can add significant value to their operations both here and globally.”