2007
Irish Exporters Association Year End Review 2006
Today 4th January 2007, the Irish Exporters Association released its Year End Review, e-mail copy being sent separately to all media.
The key points of the Review are as follows:
Overview:
- Goods Exports - €88.5 Billion - unchanged on last year
- Services Exports - €53.3 Billion - up 15.6% on last year
- Total Exports - €141.9 Billion - up 5.5% on last year
- Foreign owned Companies - €130.0 Billion Export Sales- up 5%
on last year
- Irish Owned Companies - €11.8 Billion Export Sales - up 10.2%
on last year
- Services Exporters now account for 37.6% of total exports.
The dramatic rise in services exporters continued in 2006 rising to €53.3 Billion compared to €4.4 Billion in 1995.
These figures for 2006 are expected to place Ireland as the 10th largest services exporter globally.
Major multinationals such as Microsoft, Oracle and more recently Google and E-Bay are driving the sector, but also there has been significant growth from the wide range of Irish owned smaller software companies, who grew exports by 13.3% in 2006.
John Whelan, CEO of the Irish Exporters Association stated at the launch of the review:
“Services exporters are thriving on the continued rapid growth in Global Trade which increasingly is driven by service related products such as software, financial derivatives, R&D, education and consultancy.
“However”, he warned “they are not immune to inflationary cost increases above their trading partner norms, or adverse exchange rate fluctuation”.
He went on to say that:“The increase in R&D actively in companies large and small is giving a very positive push to services exporting. But, he said, more is needed to be done to give tax incentives for specific services sector R&D.”
§ Food & Drink exporters had an exceptionally good year, with growth of 8% in food exports and 14% in drink exports.
John Whelan stated:
“The sector is reaping the rewards of investing in new product development and aggressive marketing. However, he said, companies in the sector have made it clear they have an Energy Cost Crisis which must be tackled, if production out of Ireland is to be maintained.”
§ Chemicals & Pharmaceutical companies grew their exports by 4.7% to €42.2 Billion in 2006.
John Whelan stated:
“The Pharma/Chem companies are now our largest exporting sector accounting for 48% of total merchandise exports”.
He went on to say:
“Exporters in the sector have put a strong emphasis in recent years on specific high grade logistics to meet the increasing regulatory burdens they face. Currently we have infrastructure gaps which must be addressed urgently to assist the sector in its continued growth in Ireland”.
§ Computer Hardware continued its decline in exports out of Ireland and fell by 6.6% to €18.4 Billion in 2000.
John Whelan stated:
“Companies in the sector have been most severely hit by low cost competition from Asia and Eastern Europe. However, it is still a very significant industry and must be supported with greater attention by Government to inflationary costs in energy, labour and logistics.”
Outlook 2007:
Exporters see 2007 as offering:
§ Promising environment for growth, but there are warning signs which must be addressed:
o The Energy Cost Crisis, with average 24% price in electricity and gas in the past year is unsustainable and will damage manufacturing exporters.
o Irish inflation is heading back up towards 4% whereas the European average is heading down to 2%, again exporters see this as unsustainable and will damage all exporters.
In conclusion, assuming oil prices remain at their current levels and the recent US economy slow down is not severe, the Irish Exporters Association forecast for 2007 is for a 1% fall in goods export sales to €88.0 Billion and a 16% increase in Service exports to €61.8 Billion. Hence a total export sales increase to €149.8 Billion up 6% on 2006.
ENDS
For further information, please contact:
John Whelan, CEO, Irish Exporters Association
Tel: 01 6424175 ./ Email: jfwhelan@irishexporters.ie
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