Enterprise Ireland
Annual Report and Accounts 2006
Annual Report and Accounts 2006
In 2006, Enterprise Ireland clients realised €1.699 billion in new export sales, contributing to an overall figure of €11.779 billion in total exports.
Northern Europe
On the whole, economies across Northern Europe continued to grow in 2006
and total exports to this region were €6.74 billion, an increase of 10.6 per cent. Within the region the traditionally strong export markets of the United Kingdom and France experienced GDP growth rates of 2.8 and 2 per cent respectively.
The United Kingdom experienced high inflation and rising interest rates. As a result the retail sector has become increasingly consolidated and competitive. In the industrial sector, the increasing importance of the 'green agenda' offers good opportunities for clients offering environmentally friendly products and services. The United Kingdom remained the largest export market for client companies and increased by 9.4 per cent to €5.248 billion.
The Nordic region continued to perform well and is now worth almost €300 million to client companies. Sweden, home to a host of global companies, has performed well over the last three years and its recovering IT and telecoms sector will continue to be a target for client companies. Denmark's economy performed strongly in 2006 with a GDP growth rate of 3.2 per cent. It is an attractive IT market for Irish companies because it continually invests in the latest technological developments, both in the public and private sector.
The forecast is that Northern European economies will continue to deliver valuable export business for clients in 2007.
Southern Europe, the Middle East and Africa
This region provided excellent growth opportunities for clients in 2006 resulting in an increase in exports of 22.5 per cent to €1.377 billion. Industrial sectors in Italy demonstrated strong growth in 2006 resulting in renewed confidence and increased spending. Manufacturing orders were strong during the year, showing a 13 per cent increase over 2005.
Spain's economy continued to grow. GDP growth was 3.6 per cent and this is expected to continue. Irish companies are winning high value deals in an increasingly diverse spectrum of industries including healthcare, general industrial applications and software and services.
Portugal's GDP growth was 1.6 per cent, an improvement on the 0.4 per cent figure of 2005, and continues to be an attractive market for Irish exporters. As the Portuguese continue to be early adopters of technology, key contracts were won by Irish companies selling strategic IT solutions to government and industry.
The Gulf region is enjoying strong growth due to large oil revenues and considerable reinvestment in the region. Saudi Arabia and the United Arab Emirates are providing opportunities for clients in a number of sectors.
The Americas
Clients exporting to the Americas performed well in 2006 despite challenging market dynamics, especially in the United States, where the dollar was weak and business confidence depressed.
Exports increased by 12.5 per cent to €1.299 billion. Companies with ambition and leading-edge products or services achieved significant growth and are on track for continued expansion during 2007.
Irish companies signed 62 significant sales contracts in the Americas this year, a 97 per cent increase on 2005. The fact that many of these deals were with global corporations demonstrates the confidence American business has in the capability of Ireland's products and services. Irish companies now employ more than 74,000 people in the United States, an increase of 35 per cent on 2005.
2006 was also a year for Enterprise Ireland expansion in this region. We opened new offices in Toronto, Canada and Sao Paulo, Brazil, to address growing market opportunity and strong client demand in both markets.
Germany, Central and Eastern Europe, Russia and CIS
Exports to this region increased by 13.5 per cent to €894 million. The majority of economies across the region grew at a faster rate than the European average of 2.8 per cent in 2006, creating opportunities for Irish companies.
The German ecomomy, the largest exporter in the world, grew at 2.2 per cent in 2006 with Austria and Switzerland experiencing 3.3 and 2.9 per cent GDP growth respectively. With business confidence and investment increasing across Germany and the German speaking region, the prospects are positive for 2007.
Economies in Central and Eastern Europe, Russia, CIS, the Baltics and the Balkans all performed strongly in 2006. The opening up of these economies, foreign and local investment, and European Union structural funds (where applicable) will continue to fuel this growth. This will provide clients with an increasing number of opportunities in software for Banking and Telecommunications, Lifesciences, Construction Services, Engineering and other related sectors.
Asia
Asia had the highest growth rate in 2006, with clients achieving exports of €654 million, an impressive 24.1 per cent increase over 2005. Economies across the Asia region continued to grow strongly in 2006, led by China's 10.6 per cent GDP growth, and India's GDP growth rate of 8.7 per cent. Enterprise Ireland opened an office in India during 2006 to service the increasing opportunities for our clients in that market.
Japan, the second largest economy in the world showed positive GDP growth of 2.1 per cent for the year. By year-end, 33 Irish companies had established sales and marketing operations there.
Australia maintained growth and its economy's integration with the Asian economy continues to become more important for the future. In recent years Irish exports to Australia have grown rapidly. As a market for high tech products, Australia has grown faster than any other market in the region.
Forecasts for the next few years indicate strong overall growth in Asian markets and increasing self-reliance through intra-regional trade. The prospects for client companies prepared to commit to Asia are strong.
