Multinationals dominate exports

Multinationals based in Ireland account for 75 per cent of all Irish exports last year, new figures reveal.

The top 20 companies make up 44 per cent of total exports. Seven are from the information and communications technology (ICT) sector, five are from the life sciences sector and five from the agri-food sector.

Johnson & Johnson, which has four manufacturing sites in the Republic, is Ireland’s number one exporter, having shipped €8.5 billion worth of goods from this country last year. It was followed by Microsoft where exports hit €8 billion. The third highest is Google, a relatively new arrival to Ireland.

The largest indigenous food and drink exporter is Kerry Group followed by the Swiss-based Aryzta, which used to be IAWS, followed by the Irish Dairy Board Co-op and Glanbia.

Food and drink account for half of all exports from indigenous firms. The sector enjoyed an 8 per cent rise last year with an 11 per cent increase in the first half of this year.

Food and drink now make up 14 per cent of all Irish exports and that is expected to increase by 40 per cent over the next decade driven by global demand.

Irish Exporters Association (IEA) chief executive John Whelan said investment in multinationals had increased significantly in the last two years from an average of €9.7 billion a year in the decade up to 2009 to €11.5 billion last year.

Mr Whelan said the lowering of the cost base since the advent of the economic crisis in Ireland, as well as changes in the business taxation system that took place last year, have enhanced the country's attractiveness as an investment location, especially for knowledge intensive industry.

Chemical, pharmaceutical and medical devices exporters, which together make up the life sciences sector, accounted for nearly two-thirds of all exports.

Last year, pharmaceuticals made up €30 billion - or 33 per cent - of the total, chemicals made up €22.8 billion (25 per cent) of manufacturing output and medical devices €4.3 billion (4.8 per cent) of the total.

The ICT sector is disproportionately represented in the top 10 exporters, with half  from that sector.

The top exporting companies in this sector are foreign-owned and most work in computer software and services rather than hardware manufacturing. The sector, which now accounts for 8.5 per cent of manufacturing exports,  has experienced a fall in output for the past decade. Last year was no exception, with exports falling by 36 per cent to €7.6 billion.