Irish industry holds its own in global economy

Irish industry is holding its own in a listless global economic climate, with job creation and export growth in 2003 broadly in line with the previous 12 months, according to Enterprise Ireland's end-of-year statement.

New export sales by indigenous firms were €1 billion in 2003 compared with €1.2 billion in 2002. Irish businesses created 8,200 jobs in the 12 months, down from 12,300 the previous year, Enterprise Ireland said. However, despite heavy redundancies employment among Enterprise Ireland client companies fell less this year than in 2002, with a net loss of 3,200 jobs compared with 4,000 last year.

The weak dollar and flat European and US markets were the major challenges for exporters.

Meanwhile, volatility in the technology sector resulted in difficulties for indigenous IT firms.

"In the context of the fall in the volume and price of national exports generally... buyers are prepared to do business with Irish companies but on challenging terms," said the report.

Due to the erosion in the competitiveness of Irish firms, Enterprise Ireland has established a fund to maximise the competitiveness of client companies. Some 40 businesses participated in the initiative in 2003.

As the world moves towards economic recovery, it will be an ability to innovate that sets Irish firms apart from their international rivals, Enterprise Ireland says. "Ireland's future economic prosperity will increasingly be linked to the capability of Irish companies to outperform international competitors."

In 2003, Enterprise Ireland-supported businesses employed 150,000, spent €17 billion on wages, raw materials and services, and had exports of €11 million. The agency helped 120 companies enter new markets, 80 of which were exporting for the first time, and helped client firms secure 600 new customers, distributors and partners.

Enterprise Ireland has embarked on a "strategic change initiative", which it hopes to complete in the first half of 2004.