Enterprise Ireland Supports Garrett Murray Head of Potential - - PowerPoint PPT Presentation

The Export Journey & Enterprise Ireland Supports

Garrett Murray Head of Potential Exporters Department

Global Ambition video

Enterprise Ireland – What we do

Enterprise Ireland helps companies to Build Scale & Expand Reach Lead agency in Ireland’s start-up ecosystem for indigenous companies Work with 5,000 Irish owned businesses across all sectors of manufacturing and internationally traded services Offer leadership, competitiveness, innovation, networking and financial supports made to match ambition at every stage Mandate to drive collaboration and commercialisation of state-funded research 33 international offices; 10 regional offices in Ireland Key focus is the development and growth of Irish companies in global markets Responsibility for FDI in food Total Budget of €388m in 2017 - €34.5 is funding for third party bodies and €76m is own resource income from our investment portfolio –

Additional funding for human resources provided for 2018

Source: Annual Employment Survey results for each year, published in our Annual Reports. (2007-2015)

100,000 120,000 140,000 160,000 180,000 200,000 220,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Employment 2007-2016

2016 201,108

Major Milestone Achieved

Performance of Enterprise Ireland Clients 2016: Record Jobs

61% new jobs

• utside Dublin

in 2016

North West

+5%

West

+5%

Mid West

+6%

South

+5%

South East

+3%

Mid East

+2%

Midlands

+5%

North East

+5%

Dublin

+5%

Job increases in Every Region

Exports Continue on Rising Trajectory

€18.63bn 2014 €20.59bn 2015 €21.60bn 2016

€25,000,000 €20,000,000 €15,000,000 €10,000,000 €5,000,000 €0 2006 2010 2008 2012 2015 2007 2011 2014 2009 2013 2016 Food Industrial Int SW & Services €21.6bn €20.6bn €11.8bn €18.6bn

€25 bn €20 bn €15 bn €10 bn €5 bn

• 1,000,000

2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

UK Exports by Sector Trend

Food Industrial Int SW & Services

Slowdown UK Market Growth 2016/2017

Absolute value of exports is holding

Strategic Ambitions 2020

Exports +€5bn to €26bn p.a. 67% outside UK Spend in economy +€4bn to €27bn p.a. R&D and Innovation +50% in R&D spend to €1.25bn p.a. Jobs +60,000 new jobs Sustain existing jobs

Top Barriers of SME Diversification

OECD, 2009

Barriers as Identified by SMEs:

• Shortage of working capital to finance exports
• Identifying foreign business opportunities
• Limited information to locate/analyse market
• Inability to contact potential overseas customers

Obtaining reliable foreign representation

• Lack of managerial time to deal with

internationalisation

• Inadequate quantity of and/or untrained

personnel for internationalisation

• Difficulty in matching competitors prices
• Lack of home government assistance/incentives
• Excessive transportation costs

Barriers as identified by OECD member states:

• Inadequate quantity of and/or untrained

personnel for internationalisation

• Shortage of working capital to finance export
• Limited information to locate/analyse markets
• Identifying foreign business opportunities
• Lack of managerial time to deal with

internationalisation

• Inability to contact potential overseas customers
• Developing new products for foreign markets
• Unfamiliar foreign business practices
• Unfamiliar exporting procedures/paperwork
• Meeting export product quality/standards/

specifications.

Top Drivers of SME Diversification OECD, 2009

• Growth Motives
• Knowledge-related Motives
• Network/Social Ties and Supply Chain Links
• Domestic/Regional Market Drivers
• Managers’ previous international experience
• To reduce dependence on a single or smaller number of markets
• R&D investment
• Supply Chain Control
• Social Networks/Ties
• Profit

Brexit

Scale through International Growth

Competitiveness

£

Ambition and Talent Innovation and R&D

The Export Journey & the Challenges facing Irish companies

Sterling

• Av. £0.82 in 2016

Breached £0.93 widely expected to reach parity US policy uncertainty Pessimistic growth forecasts Weakening dollar Asia & Gulf: Geopolitical uncertainty jeopardising economic growth in key high growth markets Ongoing threat of financial market turbulence remains IMF warning correction in Chinese market could impact global financial markets

Over the longer run, weaker potential growth is broadly forecast

Macro level Challenging Global Business Environment

UK UK

€7.55bn

USA/CA USA/CANAD ADA

€3.74bn

N N EUR EUROPE OPE €4.28bn 35% 17% 21%

UK is our #1 market

• 1,400+ companies with high

levels of sales into UK, employ 102,000+

• 350 companies significantly

exposed, employ c.25,000

• UK is most often the first market of export

Client Engagement Model

Potential Exporters

Strategy Innovation Sales & Marketing People & Org Development Operations Finance Get Exporting Enquiry Form, “Essentials of Exporting” Online Innovation links, Excel@Innovation Series Online Content & Tools (including short guides)*, Client Management Development Workshops Online Content & Tools, eMarketing Unit workshops, Excel at Export Selling, Market Research Centre, Trade events and missions, Brexit Web Info and Guides Online Content & Tools – Export Start Guide Online Content & Tools/Links

Potential Exporters

Strategy Innovation Sales & Marketing People & Org Development Operations Finance “Export Development”, Mentors/Advocates, Strategic Consultancy Grant, Co-Innovate Program R&D Advocates, Technical Feasibility, Agile R&D, BII, Innovation Vouchers (+H2020) CMD, Gradhub, Mentors, Open University Offer, Key Manager, Acumen Key Manager, GBGI, G4IG, Group Management Development Supports, BIM MRC, Market Scan, Internationalization Grant, Market Access Grant, eMarketing Improvement, Foodworks Feasibility, Be Prepared, Business Links, Prospector, Trade Fairs Lean Start, Green Start, Lean Plus, Job Expansion Fund, Environmental Improvement Assignment Financial Advocate, Capital Investment Initiative, Feasibility

Excel@Growth

Attracting and Retaining Talent Introduction to Lean Principles Business Planning De-risking the Innovation Process Scenario Planning for Brexit Managing Successful Innovation Projects Identifying Innovation Opportunities

Hot of the Presses! - Agile Innovation Grant

A survey of 2,000 Enterprise Ireland clients in 2016 found that those who availed of innovation supports (specifically capability, funding and collaboration support) reported on average a 67% growth in global sales. Offering fast-track approval Streamlined online application process, Enterprise Ireland's new Agile Innovation Fund will allow companies to access Up to 50% in support for product, process or service development projects with a total cost of up to €300,000. https://ambition.enterprise-ireland.com/the-agile-innovation-fund

Preparation is key

Level of perceived preparedness improving but still medium to low 1,500 completed Brexit Score Cards Sectors such as construction, engineering,

• ther manufacturing, software/ICT, other

services IMW 2017 survey ‘‘62% had taken ‘no measures to respond’ past 6 months’’

New Brexit SME Score card Brexit Zone

Take action - Uncertain times need certainty of purpose

Informing strategy Are you certain you understand your exposure and options based on information currently available?

• Assign responsibility for Brexit strategy to senior member of your team

Financial management Are you certain your financial management is strong enough? Have you a treasury policy? How often do you review cashflow? Sterling cashflow? Are you communicating effectively with your bank?

• Get access to financial and currency management expertise

Take action - Uncertain times need certainty of purpose

Cost Competitiveness Are you certain you are sourcing effectively and efficiently?

• Implement best practice in supplier management and management of logistics

Are you certain your operation is as efficient as possible?

• Implement lean principles

Innovation Are you certain you are investing enough in innovation?

• Look to innovate in your processes and products

Markets Are you certain you are optimising sales opportunities

• Look to diversify products, channels and markets (both vertical and geographical)

Responding to the challenge of Brexit

BREXIT increases the urgency to intensify what we were already doing 3 Pillars:

Promoting the ‘Irish Advantage’

Global buyers buy Irish innovation not because the like us! It is because Irish innovation is pioneering, productive and proven. This is the ‘Irish Advantage’. We will continue to promote innovative Irish products and services to global buyers:

• promoting the strengths of the “Irish Advantage”
• highlighting the advantages of sourcing from Ireland

On Trade Missions, Inward Buyer Visits and by connecting with Enterprise Ireland’s network in the marketplace.

Thank You

Contact: potentialexporters@enterprise-Ireland.com

• r

garrett.murray@enterprise-Ireland.com