Ireland Manufacturing Update July 2017 – Strongest Growth Reported In 2 Years, Hiring Increasing, But Skills Shortages Persist

Manufacturing – 2^nd Largest Irish Employer

There are over 4,000 manufacturers operating throughout Ireland, with 82% based outside the Dublin region. Manufacturing accounts for 24% of GDP, above EU averages. Manufacturing employs around 159,000 staff, making it second largest employer in the country and a critical sector for the Irish economy

June 2017 – Strongest Growth In Manufacturing Since July 2015

According to a June 2017 survey Ireland’s manufacturing activity expanded at the fastest pace in almost two years in June 2017 – manufacturing has “a strong tailwind behind it”, said Philip O’Sullivan, chief economist at Investec Ireland.  Output grew at the sharpest pace for close to two years on the back of stronger client demand leading to higher new orders. Consequently, manufacturers raised both their staffing numbers and purchasing activity in June.

Core Sectors – Irish Manufacturing

• Basic pharmaceutical products and preparations (accounting for 37% of total production)
• Food products (18%)
• Chemicals and chemical products (15%)
• Computer, electronic, optical and electrical equipment (11%)
• Other manufacturing, repair and installation of machinery and equipment and tobacco (7%)
• Basic metals and fabricated metal products, machinery and equipment (5%).

Importance Of Irish Manufacturing In The Economy

Recognising the importance of the Irish manufacturing sector a ‘Manufacturing Ireland’ campaign and new association, the Irish Manufacturers Association (IMA) was launched in January 2016. The IMA is a cross-sectoral umbrella group to raise the voice of manufacturing in Ireland and to engage with industry and government to ensure it reaches its full potential.

The ‘Manufacturing Ireland’ campaign set out a vision for Ireland’s manufacturing sector by the government with a focus not only on investment, but on skills;

• Additional spending commitment of €10bn on manufacturing infrastructure projects by 2020
• Funding for upskilling in manufacturing and supporting the development of new sector specific apprenticeships and a tax system in place that helps manufacturers retain staff and also encourages skilled people to come back to Ireland. “A lot of manufacturers struggle when it comes to accessing and retaining the skilled people they require,” McNally

Irish Manufacturing Pushes Ahead Despite Brexit

• Ireland is the EU’s fastest-growing economy and is widely seen as the EU member most at risk from Brexit due to its close trading links with the UK. However, after ‘a muted initial impact’, the Irish economy is in fact growing faster in 2017 than it did a year ago when the UK voted to leave the EU. Irish manufacturers have yet to experience negative effects of Brexit, with businesses continuing to increase their staff numbers and investing in growing their levels of stock.

Irish Labour Market – Skills Shortages

Total employment in Ireland is at its highest level since 2008, however the migration that occurred during the bust years has left the country with a shortage of craft skills, particularly in construction, pharmaceuticals and mechanics and also many other occupations which require practical skills. IT, data analytics, risk and finance, technicians and engineering are all areas with major skills shortages.

The lack of availability of key talent remains a key concern amongst Irish HR and Irish and Global CEOs according to a recent Pwc survey. The lack of availability of key skills is cited as a top business threat to growth and the skills shortage is having a serious impact on Irish business performance.

Organisations are struggling to recruit the right people with the right skills to support their future growth plans.

“The skills challenge is at a ten year high and is a major threat to business growth”.

Irish Skills Shortages Solutions

To tackle the skills shortage companies in Ireland are searching for talent in different geographies and industry sectors and the government and industry are committed to developing apprenticeship schemes nationwide.

Returning Emigrants / Immigration

Companies in Ireland are looking to other geographies and industries to recruit talent. As such, Ireland continues to attract returning emigrants from Europe, the UK, Australia and US, across a range of industries, with immigration of skilled professionals now also a necessary factor, particularly in the multinational sector.

Irish Apprenticeships & Training Programmes 2017 Update

To tackle the skills shortage, the Irish government is aiming for 31,000 apprenticeships and 19,000 shorter-term traineeships to be completed by the end of 2020, for example in financial services, insurance, electrical engineering and medical devices. For example;

In the medtech sector 3 new apprenticeship schemes are seeking to plug the skills gap in the domestic manufacturing industry, with 1,100 new apprentices to be registered by 2025 which will “significantly address” the issue. A new manufacturing engineering programme is currently being developed by the Irish MedTech Association together with GMIT, the Galway and Mayo Institute of Technology.

Engineers Ireland and Siemens have partnered up to deliver training services (Sitrain) to the life sciences and food & beverage manufacturing industries with a focus on increasing the technical skills base in the high-tech manufacturing sector, as well as career development for engineers and technicians based in Ireland ;“Digitalisation is transforming Irish manufacturing, allowing increased competitiveness, shorter time to market and increased flexibility of production. Investing in technology training is a key priority for Irish manufacturers as the digitalisation of industry demands the intelligent use of ‘big data’ combined with automation and process know-how.”

The Skillnets programme has also been set up where employers, trade unions and educational providers have cooperated to boost upskilling of existing employees.

Recent Hiring – Irish Manufacturing July 2017

US pharma giant Merck announced in July 2017 that it is planning to create 330 new jobs and invest 280 million euros over the next three years at two of its Irish manufacturing sites. More than 200 new hires will be needed to work on treatments including medicines for lung cancer, melanoma, hepatitis C and rheumatoid arthritis

·       Ireland’s first Irish Manufacturing Research Centre recently opened creating 40 hi-tech jobs with plans to scale to 200 jobs as investment from industry grows within the centre. The Centre’s mission is to carry out cutting edge Research, Development and Innovation in close collaboration with manufacturing companies to ensure industry in Ireland can become, and remain, world-class leaders in their field. The Centre brings together over 100 indigenous and multinational manufacturers to share the challenges and opportunities in next generation manufacturing.  The Irish Manufacturing Research Centre aims to ensure that Irish based manufacturers are ready to deal with future technological and business challenges through a comprehensive portfolio of research, funding opportunities, advanced skills development and networking

• In March 2017 Allergan announced a 42m Euro investment to increase capacity and capabilities at 2 manufacturing plants in Ireland increasing its existing 1700 Ireland workforce

Struggling to recruit skilled and talented manufacturing staff?

Get in touch with Ten Live

Award-winning UK & Ireland Manufacturing Recruitment Specialists

Contact
T: +44 1236 702 007
E: info@tenlivegroup.com
Click here for more information!

Sources
Trading Economics
Engineers Journal
III
Independent
Irish Examiner
Irish Times
Google
The Pharma Letter
Business World
Silicon Republic
News Talk
In Pharmatechnologist
Irish Examiner
PWC
Morgan McKinley
UK Reuters