The booming economy is underlined by the continued good performance of Irish-owned firms assisted by Forbairt. While the headlines have been grabbed over the past year by the major projects won by IDA Ireland, Forbairt is keen to highlight the steady, if less spectacular, growth of the indigenous sector.
The agency has also noticed a number of Irish managements buying out their multinational parents, which it believes points to the increasing confidence and expertise of indigenous industry. Forbairt's chief executive, Mr Dan Flinter, says the key growth areas are software, engineering and food.
The agency is also going to target certain niche markets such as medical devices. There is overseas interest in linking with local companies who can supply certain products to help larger companies expand their product range.
Forbairt has already used a similar technique through successfully targeting the technology sector, helping Irish firms to become sub-suppliers to large multinational companies. The sub-suppliers have grown and branched out to become suppliers in their own right.
This approach, using linkages with multinational companies, is now worth about £1.4 billion a year. But Mr Flinter stressed the scenario is not all positive.
Sub-suppliers are also facing their own challenges, says Mr Flinter, and will have to offer more value to their services and establish links with their counterparts in the US and the Far East.
The food sector will also have to recognise the significant changes that have taken place in the sector since the arrival of Tesco and Safeway in the Irish market. Forbairt is helping suppliers in this area so they can maximise their business with them. Tesco, for example, will be changing the Premium brand goods to their own label and different criteria will have to be fulfilled.
There is also the question of skill shortages which are manifesting themselves in areas such as engineering and software. Irish firms are vulnerable to multinationals head hunting staff with, say, five years project management experience. Some Irish firms find they cannot compete with them on wages and are losing staff they have trained.
Mr Flinter welcomes the huge job creation which multinationals tend to bring. But he says ways should be examined of using linkages - in other words convincing multinationals to use indigenous firms for certain production processes wherever possible, from the day they set up, rather than seeking staff to do it themselves.
