services. Strong export growth. Cities & Clusters. Europe. Education. Ease of doing ... 'We evaluated several locati
Ireland Update Q3 2015
@IDAIRELAND www.linkedin.com/company/ida-ireland www.youtube.com/InvestIreland
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Why Ireland, companies are attracted to Ireland for a variety of reasons
In Ireland, Unemployment Rate is down Labour costs down, they are below the Euro area average
Track Record
Talent
Tax
Solid GDP growth Strong FDI flows Rising employment
Ease of doing Business
Education
Europe
Rapid expansion in manufacturing & services Strong export growth
Cities & Clusters
Connected Research
Cutting-edge Companies
01 -
Ireland is at the heart of things
Impact of FDI
Recent company announcements include Vodafone, Johnson & Johnson, Shopify, Citi, Affero Labs, Marsh & McLennan, eSentire, and AbbVie to name but a few.
Excellent flow of projects in the first half of 2015, 110 investments, up from 100 last year, potential to create 9,000 jobs.
‘We are very excited to be here in Ireland and growing in Dublin. The city is a technical hub and offers us everything we could need in terms of people and talent. It is a vibrant place and innovation is at its heart. It is the perfect place for us to grow YouPass and Megatransfert into a world class fintech company. We are excited for our future here and hiring some exceptional talent.’
Employment in IDA client companies now stands at 174,488 people, the highest level in the history of IDA Ireland.
Florent Thiebeaux, Founder, Megatransfert Technologies
IDA Ireland clients have a significant impact on the Irish Economy;
‘We evaluated several locations within Europe to expand our business and establish an EU base to better serve our clients on both sides of the ocean. We were extremely impressed with the technical talent in Cork and the ecosystem the government has helped to develop to fill the skills gap, specifically in the demanding and competitive field of cybersecurity.’ Mark McArdle, CTO eSentire Inc
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€124.5 bn exports
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Growing supply base - €13.9bn of purchases from Irish suppliers
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€1.4 bn R&D spend
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€8.5bn payroll
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€2.8 bn of corporation tax
‘The new Zalando Fashion Insights Centre in Dublin will play a major role as we continue to lead online fashion and grow our presence across Europe’ Robert Gentz, Founder and Member of the Management Board, Zalando
02 -
Fastest growing economy in Europe Public finances improving rapidly, Government debt fell 13 points to 110% of GDP in 2014.
Rapid expansion in both manufacturing and services sectors. Retail sales and VAT signalling strength in domestic demand.
Irish economy to grow at the fastest in Europe for 2nd year in 2015.
Strong export growth.
Real GDP Growth 5% 4% 3% 2% 1% 0%
2013
2014
2015
2016
Source: CSO National Accounts, 2014-2016 forecast from Department of Finance (April Statement 2015)
03 -
Labour market continues to strengthen
FDI led exports sector plays an important role
Almost 105,000 additional people at work since 2012.
High value sector was key to supporting economy through restructuring.
Unemployment falling, down to 9.7 % in June from peak of 15.1% in 2012.
Composition of Exports 2013
Number Employed (000’s) 1,960
16%
1,940
14%
1,920
12%
1,900
10%
1,880 8%
1,860
PHARMA & CHEMICALS COMPUTER SERVICES BUSINESS SERVICES FINANCIAL SERVICES *MEDICAL DEVICES MACHINERY & TRANSPORT FOOD & BEVERAGE
28% 22% 12% 10% 6% 6% 5%
6%
1,840 1,820
4%
1,800
2%
1,780
0%
10%
20%
30%
40%
* Miscellaneous manufacture articles (8)
0% Q1-11
Q3-11
No. Employed
Source: CSO, Q2 2014
Q1-12
Q3-12
Q1-13
Q3-13
Q1-14
Q3-14
Q1-15
Unemployment Rate (RHS)
Source: CSO, 2013
04 -
Significant improvement to Ireland's competitiveness
Labour costs competitive
Ireland’s improved competitiveness is reflected in Global Competitiveness Reports.
Irish hourly labour costs fell below the Euro Area in 2011 and have remained so to 2014.
- The World Bank Competitiveness Report up 3 places to 13th - IMD World Competitiveness Yearbook relatively stable at 16th - The World Economic Forum Global Competitiveness Report 2014/ 2015, up 4 places to 25th
Irish labour costs are 10th in the EU, below countries like Luxembourg, Germany, Belgium, and the Netherlands.
Labour Costs Falling Irish hourly labour costs fell below the Euro area in 2011 and has remained below in 2013.
TOTAL LABOUR COSTS 2014
Ireland Global Competitiveness Rankings RANKINGS
1 5 10 15 20 25 30 2012
World Bank
2013
2014
IMD
2015
WEF
Source: IMD WCY 2015, World Bank Doing Business Report 2015, WEF Global Competitiveness Report 2014/2015
42.0 41.1 40.2 35.7 35.2 33.5 31.8 31.7 29.2 28.4 27.4 24.5 22.2 21.0
DENMARK BELGIUM SWEDEN LUXEMBOURG FRANCE NETHERLANDS GERMANY AUSTRIA EURO AREA IRELAND ITALY EU UK SPAIN 0
Source: Eurostat 2015
10
20
30
40
50
60
70
80
90
100
05 -
One of the most productive economies in the EU
Confidence returning to the property market
Labour costs do not tell the whole story, productivity is also key.
Value remains in commercial property market, particularly in regional locations.
Irish productivity is c.35 points above the EU27 baseline.
Recent price increases, concentrated in prime Dublin city centre property - prime headline rent €538m2 / €50ft2.
The most productive & efficient economies in the World
Different story in suburbs - South Suburbs €269m2 / €25ft2 - North Suburbs €161m2 / €15ft2 - West Suburbs €151m2 / €14ft2
INDEX (EU27 = 100)
IRELAND BELGIUM FRANCE SWITZERLAND SWEDEN AUSTRIA SPAIN DENMARK NETHERLANDS EURO AREA FINLAND GERMANY UK
135.5 127.3 116 114.9 114.5 113.4 111.2 111 108.8 108.6 107.1 107 99.4 0
Source: Eurostat 2014
50
100
150
Current factors at play in property market - New development cycle has begun, the return of the crane - Significant city centre stock coming on stream from Q4 2015 to 2017
200
Source: CBRE Ireland Bi-Monthly Research Report, July 2015
06 -
Multilingual - foreign languages spoken at home
Ireland, one of the youngest populations in Europe
Multicultural and multilingual society - Over half a million Irish residents speak a foreign language fluently - c.17% of the population is international
Median age of 35.5 compared to 42.8 in Euro Area. One of the lowest old-age dependency ratio in Europe at just 18.6%, compared to 31.3% in Germany, and 28.9% in Euro area as a whole.
Only English speaking country in the Eurozone Ideal base from which to service global markets Foreign languages spoken in Ireland, number of people Polish
119,526
French
56,430
Lithuanian
31,635
German
27,342
Spanish
22,446
Russian
21,640
Romanian
20,625
Italian
10,344
Chinese
15,166
Arabic
11,834
Other
177,080
Total
514,068
Source: CSO Census 2011, Foreign languages spoken at home
OLD DEPENDENCY RATIO 1ST VARIANT (POPULATION 65 AND OVER TO POPULATION 15 TO 64 YEARS)
31.3 29.9 28.9 28.9 27.6 27.5 26.8 26.8 26.4 26.3 25.7 25.5 18.6
Germany Sweden Euro Area Finland Denmark France Austria Belgium Spain UK Switzerland Netherlands Ireland 0
Source: Eurostat 2015
5
10
15
20
25
30
35
40
07 -
