It is something of an understatement to say that Ireland’s enviable manufacturing sector is a cornerstone of the economy. Figures from 2023 show that Ireland’s manufacturing sector employed more than 220,000 people, with €197.25 billion in exports and more than €13.7 billion generated in wages, income tax and corporation tax. Its hefty contribution to GDP notwithstanding, it is a home for much of the engineering, technical and technological expertise that Ireland is renowned for.
As a result, Ireland is well positioned to embrace the very latest in innovations that will help our manufacturing sector to compete on the global stage and ensure we continue to be an attractive base for advanced manufacturing. The 10th National Manufacturing & Supply Chain Conference and Exhibition, which will be held at the RDS Simmonscourt, Dublin on the 28th and 29th of May 2025, will be an opportunity to learn more about these innovations.
Ireland now ranks among the top five European exporters of a wide range of cutting-edge goods and devices
— Sharon Higgins, Ibec‘s executive director of membership and sectors
For example, one of Ireland’s specific strengths is our supply chain expertise, which significantly contributes to our competitiveness as a base for advanced manufacturing. Ireland has developed a long-standing track record of success when it comes to operating across complex global supply chains, says Sharon Higgins, Ibec‘s executive director of membership and sectors.
“We’re not just keeping up – we’re leading the way. In fact, Ireland now ranks among the top five European exporters of a wide range of cutting-edge goods and devices.” Ireland is also ranked second in Europe for exports of contact lenses, vaccines, medical devices and orthopaedic products, and third for complex pharmaceuticals, immunological products and specialised nutrition items.
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Barry Kennedy is chief executive of Irish Manufacturing Research (IMR). He agrees with Higgins, noting that Ireland has developed deep expertise in supply chain transformation and technology adoption, supported by organisations such as IMR.
“IMR is an independent centre and one of Enterprise Ireland‘s technology centres, established to help manufacturers demystify, de-risk and deploy emerging technologies in a practical, impactful way,” he says. “Through initiatives such as the strategic industry readiness index, IMR supports companies in identifying the most effective technologies to adopt and provides a safe environment to trial them before investment.”
According to Higgins, Ireland’s manufacturing sector is recognised globally as high-tech, high-end and offering incredible value.
“It has gained recognition across the world for fostering high-quality hubs, especially in areas like pharmaceuticals, medical devices, industrial engineering and ICT,” she says. According to Ibec’s 2024 report Facing Forward: Manufacturing Confidence Amidst Evolving Challenges, about 70 per cent of manufacturers express confidence in the sector, highlighting its resilience and adaptability.
“Despite challenges such as rising operational costs and talent retention, Ireland’s commitment to innovation and productivity enhancement reinforces its reputation as a reliable and forward-thinking manufacturing giant.”
Indeed, Ireland has cemented itself as a strategic location for manufacturing headquarters. Higgins points out that our geographical closeness to Europe’s markets, coupled with a skilled workforce, makes it an attractive option for multinational corporations but our manufacturing sector has also proven to be dynamic and agile, particularly when it comes to embracing advanced technologies.
“As per Ibec’s 2024 report, over a third of manufacturing businesses prioritise AI to improve efficiency, productivity and to increase profits,” Higgins says. Notably, AI is a higher priority for pharmaceutical companies, with more than 54 per cent identifying it as crucial and 75 per cent planning to adopt AI initiatives in the next one to two years. In addition, 50 per cent of engineering firms are planning to adopt it within the same time frame. “Embracing digitalisation and AI across the manufacturing sector continues to be an essential component to fostering innovation and enhancing productivity,” Higgins adds.
There is a pressing goal to have 75 per cent of businesses in Ireland using cloud computing, big data and AI by 2030
— Barry Kennedy, Irish Manufacturing Research chief executive
Yet we face some key challenges in this area, not least our high labour costs – Kennedy points out that we are currently ranked ninth in the world for average salaries.
“In response, manufacturers across the country are accelerating their adoption of digital technologies and automation to drive down costs, boost productivity and work toward carbon neutrality,” he says.
“There is a pressing goal to have 75 per cent of businesses in Ireland using cloud computing, big data and AI by 2030.” Achieving this target will be essential to maintaining Ireland’s competitive edge on the global stage, Kennedy warns.
There are other threats to our competitiveness: ongoing trade tensions with the United States, the aftershocks of Covid-19 and geopolitical instability such as the war in Ukraine continue to create uncertainty for exporters. Ireland must seek to diversify its export markets and reduce its dependency on a narrow set of trading partners, Higgins says. “To remain competitive, manufacturers will need to accelerate productivity improvements and adopt more flexible, responsive approaches to how – and what – they manufacture. Facilities must be capable of adapting quickly to shifting global demand.”
According to Mark McKeever, procurement and supply chain director with PwC Ireland, Irish-based manufacturing firms are keen to embrace technology and innovation in order to stay globally competitive. “Given the current environment we are definitely seeing an increased focus on how companies can drive their competitive position,” he says. “We are starting to see an acceleration of investment in technology to drive efficiency. Application of ‘control towers‘, which provide end-to-end visibility of product movements and data across the entire supply chain, and enhanced demand planning solutions are key focus areas.”
Many organisations are also transitioning to a “partnership” model with key strategic suppliers, for example, bringing suppliers into a company’s innovation and new product design process, McKeever adds.
Amid current geopolitical uncertainties and volatile trading conditions, Higgins maintains now is the time to intensify efforts to enhance business competitiveness, both nationally and across the European Union.
“This means addressing business costs, streamlining regulations, accelerating infrastructure projects and making strategic investments in skills, artificial intelligence and innovation,” she says. “These actions are essential to boosting productivity and strengthening resilience as we adapt to a rapidly evolving global landscape.”
Kennedy agrees. “Maintaining our competitive edge will require a co-ordinated national effort – one that aligns investment, innovation and people with a bold vision for the future of Irish manufacturing.”
