THE NORTH:THIS TIME LAST year Northern Ireland was still enjoying the relatively warming rays from an over-heated housing market, writes Frances McDonnell.
Although there was evidence of a slowdown in the market compared to the record speed at which houses had been selling in 2006, prices were still climbing. Twelve months down the line and there is a definite chill in the air.
At the height of Northern Ireland's housing market frenzy experts estimated that the average house could depending on its location fetch more than €300,000.
According to the latest University of Ulster Quarterly House Price Index the average price of a house in the North has now fallen back to around €288,000.
Economist Alan Bridle, Head of Research at Bank of Ireland Northern Ireland, believes that the North's housing is "technically in recession" for the first time since the early 1990s.
Northern Ireland's temporary housing market boom created a major feel-good factor for the economy last year.
But apart from one exception it does not appear to have materially enhanced the position of any of the construction companies which traditionally grace The Irish Times Top 50 companies in Northern Ireland.
The Belfast-based Lagan Group, whose business portfolio spans house-building to waste management services, is the only construction company which has moved up the listings. The company, which is privately owned by brothers Kevin and Michael Lagan, moved from 12th in 2007 to tenth place this year thanks to an £80 million jump in its turnover to £420 million.
But the four other NI construction related companies which feature in the Top 50 including Northstone (28), the Patton Group (35), John Graham (46) and McLaughlin & Harvey (50) have slipped down this year.
The construction industry was one of the North's biggest employers in 2007 - more than 75,000 people were employed in the sector. Statistics from the Department of Economic Development underline the vital role it plays in the Northern Ireland economy.
In 2003 the construction industry's total output was worth £2.5 billion. By 2006 the estimated value had grown to £3.25 million or 12.3 per cent of the North's gross value added.
Although the housing market accounts for more than 40 per cent of the total turnover in the construction sector - it is the North's public sector which delivers the biggest boost to this industry. In the past the public sector may have represented anything up to 40 per cent of the total turnover of the industry.
But government spending has doubled in recent years; for example in the period 2003-2004 public-sector expenditure on construction was £676 million. But thanks to devolution and the NI Executive's Programme for Government this figure is expected to increase to more than £1.2 billion.
The dependency of this key industry on government spending reflects how subservient the North's economy is to the public sector. More than 30,000 people work for the civil service in Northern Ireland - just 1,503 people work for the Viridian Group, the number one ranked company in the Top 50 companies list.
The public sector employs one in every three workers and an estimated 60 per cent of all females in employment.Public spending accounts for approximately 61 per cent of Northern Ireland's GDP.
Ulster Bank economist Richard Ramsey has predicted that this year the North's economy will grow at its slowest rate since 2002 at 1.5 per cent.
However Michael Smyth, a senior lecturer in economics at the University of Ulster, says the North's relationship with the public sector will help cushion it - to a degree - against an economic slowdown.
In reality the number one company is the British government because it provides the lifeblood of the North's economy. The Northern Executive recognises the need to reverse the disproportionate size of the public sector in the private sector's favour.
It has set in motion ambitious plans to secure 6,500 new jobs from inward investment projects over the next three years. The recent US:NI Investment Conference in Belfast was the first step in the campaign to reshape the economic landscape in Northern Ireland.
But until this campaign produces results, our latest Top 50 companies list reflects who the private sector power brokers are in the economy. It illustrates the fact that not one of the North's publicly listed companies has made it on to the list this year.
Top ranked Viridian, the energy group that owns Northern Ireland Electricity (NIE), Energia and Powerteam Electrical Services, was delisted in 2006, when it was acquired by the Bahrain-based investment group Arcapita in a £1.6 billion deal.
The Belfast-based media group UTV was listed at number 46 in the rankings last year but has failed to make the Top 50 companies this year.
The North's other publicly traded companies include First Derivatives and Andor Technology. Newry based First Derivatives recently posted full year results until the end of February showing a turnover of £12.7 million.
In May, Belfast-based Andor Technology posted interim results (for the six months to March) which listed a turnover of £11.5 million.
Despite the absence of any publicly traded companies the Top 50 list reflects the important role family-owned businesses continue to play in the North's economy. Two out of the top ten ranked companies are family-managed companies - the Lagan Group (10) and Dunbia, the Dungannon- based meat producer, which has jumped from number 42 last year to number nine in 2008.
There are several newcomers, most notably Maxol Oil at number 29 and Glen Electric - part of the Glen Dimplex group - at 39.
The Almac Group, which was set up by Dr Allen McClay, who also founded Galen Holdings Plc, has entered the Top 50 for the first time at number 44. Given Dr McClay's record with Galen, this could be one firm rising up the ranks of next year's listings.
THE NORTH'S TOP MANAGERS
Northern Ireland's top ranking managers are Patrick Bourke, the chief executive of Viridian (1) and Gary Mills, Tesco (2) director for Northern Ireland.
Mr Bourke (51) is a graduate of Cambridge University who initially joined Viridian as group finance director more than eight years ago.
Belfast-born Mr Mills, who is exactly a decade younger than his Viridian counterpart, started his retailing career with Stewarts in Bangor as trainee manager.
Today as Tesco celebrates ten years in the North he is the supermarket group's director for Northern Ireland, in charge of 36 stores, seven express shops and two distribution depots.
Patrick Bourke was appointed chief executive of Viridian in April 2007 - barely six months after the Northern Ireland group was acquired by the Bahrain-based financial investor Arcapita.
He began his career as a chartered accountant with KPMG after which he worked for nine years in investment banking with Hill Samuel and BZW.
Prior to joining the Viridian he was group treasurer at Powergen, one of the UK's largest electricity generators and energy retailers.
During his time at Powergen Mr Bourke was responsible for the group's substantial debt portfolio - in both the UK and for overseas investments.
Mr Bourke now also holds the position of chairman of the board the board of trustees of the Viridian Group Pension Scheme.
In contrast to Mr Bourke, Mr Mills has built his career solely in the North.
He worked for a number of stores under the former Stewarts brand and when the company was acquired by Tesco he was appointed manager of its flagship store in Knocknagoney in Belfast.
