Supply chain business could be worth €500m
Greater supply chain linkages between multinationals based in Ireland and indigenous companies could create 1,000 jobs and give the economy a €500 million annual boost, the Government claims.
Minister for Jobs, Enterprise and Innovation Richard Bruton yesterday said that the IDA and Enterprise Ireland are joining forces to encourage indigenous companies to win business from multinational companies (MNCs) based here.
The strategy is part of the Action Plan for Jobs initiative, which aims to improve supports for job-creating businesses.
Irish-based MNCs currently source approximately € 80 billion in goods and services globally, with Irish companies accounting for more than €11 billion of this. According to Mr Bruton, a 5 per cent boost in business wins by Irish companies could lead to annual benefits of more than €500 million.
“There can be a knock-on of 1,000 jobs by supply-chain companies improving their capacity to penetrate the market that’s on our door-step,” he said. “I believe there are real opportunities here”.
As part of the strategy, the IDA has identified 65 multinational companies that offer “particular potential” for Irish companies, and will develop a joint strategy with EI to target these companies. Many Irish companies are already successfully tapping into this market.
Speaking at the launch of the initiative yesterday, Séamus McKenna, vice president of global engineering and professional services at Daon, a biometric identity management company, said that the company would be one of “Ireland’s best-kept secrets” if it wasn’t for its engagement with Accenture. It has worked with the global consultancy firm to secure biometrics projects across India, the US, Europe and Ireland.
The advantage, he said, of working with a global brand such as Accenture is that you get to “hang on to their coat-tails” while you establish yourself in the global market.