The Irish economy is the fastest growing economy in the Eurozone and the 6th most competitive in the world.  As the most important sector in Ireland’s economy, manufacturing has been transformed over the past 20 years by globalisation, technology and the growth of emerging markets.  The sector has earned the reputation today as a dynamic global centre of (advanced) manufacturing excellence, showcasing world-class production facilities and a highly adaptable, creative and innovative workforce.

 Sector Breakdown 2018

Pharmaceutical products and preparations account for 37% of production in Irish manufacturing. This is  followed by food products (18%), chemicals & chemical products (15%), computer,electronic,optical & electrical equipment (11%), other manufacturing, repair & installation of machinery, equipment & tobacco (7%) and basic metals & fabricated metal products,machinery & equipment (5%).

Strong Continued Growth In 2018

In January 2018 the sector began the year with a positive start. The widely used index for measuring the manufacturing activities in Ireland, the Manufacturing PMI (Purchasing Managers Index), registered 57.6 for January 2018. This was driven by strong continued demand from domestic and overseas customers. Employment in the sector also continued to grow. In June 2018  new orders were the highest received in H1 2018,  driven by increased demand.

Manufacturing Production in Ireland increased 4.9% in November of 2018 over the same month in the previous year. In November 2018 business conditions in the sector improved for the 66th consecutive month.  Manufacturing Production in Ireland averaged 8.19% from 1981 until 2018.  The sector also witnessed an expansion over the last 18 consecutive months.

The rate of employment growth in Ireland’s manufacturing sector fell to a 14-month low in November, however, business conditions in the sector have improved for 66 consecutive months.

The IHS Markit Ireland manufacturing purchasing managers index (PMI) increased to 55.4 in November, up from 54.9 in October. The PMI is an indicator designed to provide a single-figure measure of the health of the industry.

A “marked increase” in new orders was central to the improvement in operating conditions in the market while growth of new work accelerated from October.

Manufacturers raised production for the 28th consecutive month in response to higher new orders while the rate of output expansion quickened in the month, the data shows.

Forecast For 2019

And while workforce numbers rose for the 26th consecutive month during November, the rate of employment growth started to ease. However, the industry is increasingly optimistic with over 50% of manufacturers confident of a rise in output from present levels over the course of the next 12 months.

Skills In Demand 2018

Set against this strong background of manufacturing growth, however, a survey in May 2018 of over 250 manufacturing SMEs in the top five sectors (including building materials, print and packaging, equipment assembly, timber and food) found that significant nationwide skills gaps exist amongst manufacturing SMEs in Ireland;

• Despite 28% of  SME companies in Ireland hiring new staff since the start of 2018, 44% said  that maintaining and hiring a skilled workforce is a real concern for the future
• Over 50% of larger SMEs across Ireland said sourcing engineers is a problem
• Nationally, SMEs were most concerned about the lack of skills in marketing, sales and production
• Outside of Dublin, retention of production staff is a real challenge for more than one in three SMEs
• More than half of Munster businesses said the lack of skills would be a major problem in the future, compared to 22% of Dublin firm
• In the future skills, a shortage could impact expansion and succession plans by SMEs
• Retaining talent was a bigger problem for SMEs than larger organisations, however, 41% do not regard investing in training as valuable or may not have dedicated resources to address it. Wage increases were the most commonly relied upon staff-retention strategy, used by a quarter of firms, while one in six said location is a primary pull factor. Incentives by firms in Connacht and Ulster such as flexi-time, pension schemes and health insurance have proved to be successful in retaining more staff than Munster and Leinster
• Brían Evans, Head of Manufacturing at Bank of Ireland said; “Leading sector indicators over the past few years have shown consistent employment growth and increased demand for Irish produced products in home and export markets. After Brexit, the hiring and retention of a skilled workforce is one of the main challenges for manufacturers. With unemployment in Ireland at the lowest level since before the financial crisis in 2008, competition for skilled workers is increasing across industries with recent research from the construction sector also highlighting major challenges”.

The reality is that manufacturing companies, both SMEs and large global organisations across Ireland will miss opportunities if the skills gaps are not filled. Acquisition of new staff and retention of existing staff will be critical for business sustainability.

European Headquarters Of Multinational Global Companies

• Ireland is ranked number 1 in Europe as a place to do business due to attractive taxation rates and other factors.  Many expats work in Ireland with many of the world’s largest and most successful tech and pharma companies have operations/European Headquarters in Ireland e.g.  Google, Facebook, Microsoft, Intel, LinkedIn etc.

English Is The Main Spoken Language

• Under the Constitution of Ireland both Irish (Gaelic) and English languages have official status, with Irish being the national and first official language. However, English is the most widely spoken language.

Multi-National/European Population

• The number of people moving to Ireland from other countries has increased in recent years. Ireland has long been a popular destination for people from Poland, Lithuania, Latvia, the Czech  Republic and Romania.  A 2015 study showed that almost 1 in 8 people living in Ireland were born abroad. As such, people from other nationalities are well-catered for with plenty of expats to connect when you relocate and high demand for international shops popping up through the country

Mild Climate

• Ireland’s climate tends to be mild year round. The warmest months are  June, July, and August, with average temperatures around 16-20°C . January is the coldest month with average temperatures around 5°C . Known for its green landscape, Ireland does to get its fair share of rain, but also sunny days and that’s when the really country shines.

Good Supply & Reasonable Cost Of Accommodation

• Accommodation is plentiful both in and near the main cities. Rental properties can be found furnished or unfurnished. Dublin is Ireland’s capital and largest city with good public transport links. Dublin’s rental market can be pricey and competitive, but accommodation is less expensive outside of Dublin in  smaller cities such as Cork, Limerick, Waterford, or Galway.

Free Healthcare

All residents in Ireland are entitled to free public health cover.  EU/EEA/Swiss nationals can use a European Health Insurance Card (EHIC) to cover most medical care as well.