Exports hit record high as Irish firms hit Asian markets

Colm Kelpie

EI chief Julie Sinnamon

COMPANIES backed by Enterprise Ireland (EI) clocked up record export sales last year with the biggest growth occurring in the Asia/Pacific region.

In a welcome sign, export sales into Northern Europe also rose strongly despite tepid economic growth in the euro zone.

And while all sectors experienced growth, food and beverage sales were up 10pc on the previous year.

The semi-state agency tasked with encouraging companies to tap into overseas markets said 2013 witnessed the best performance in more than a decade in both export growth and net job creation.

Businesses supported by EI achieved €17.1bn in export sales - up 8pc on 2012 and creating more than 18,000 new jobs.

When job losses are taken into account, the net increase was 5,442 in the number of people employed - the largest in a decade.

Enterprise Ireland chief Julie Sinnamon, who took over the post late last year from Frank Ryan, said EI-backed companies are contributing hugely to the performance of the economy.

But she said one of the big challenges for Irish enterprises was a lack of scale.

"I think we need to grow our scale in international markets and the scale in Ireland," Ms Sinnamon said.

"We have a small number of large companies and a large number of small companies and what we need is a much larger group of mid-size companies to be able to internationalise in a competitive way.

"It's a work in progress with a lot more to do, but it's good to be doing that from a position of strong performance in 2013."

Enterprise Minister Richard Bruton said the figures were "really impressive" with every region in the country enjoying growth.

"They show the dedication of the staff within Enterprise Ireland but also they show the ingenuity of Irish enterprise and Irish workers in winning new markets against a pretty tough international climate," he said.

The UK remained the biggest market for exporters, with sales worth €6.3bn last year - up 3pc on 2012.

The big success, however, was the surge in the Asia/Pacific region, which saw sales increase by almost a fifth to €1.2bn.

Mr Bruton said this showed that while companies were taking on the more difficult markets, they are the markets that will sustain growth for the long-term.

"Those are the areas of the world where long-term most of the export growth is going to happen," the minister said.

"We need to position ourselves in those markets."

Northern Europe remained the second most important market, with sales of €3.6bn - up 14pc on the previous year.

All sectors experienced growth, with food and beverage enjoying a 10pc increase on 2012 to €9.5bn, while internationally traded services, software and public procurement was up 5pc to €2.72bn.

Life Sciences, engineering, paper, print and packaging, electronics and cleantech was up 7pc to €2.78bn and construction and consumer was also up 7pc to €2.15bn.

In addition, EI invested in 104 new high-potential start-up companies, the highest number yet in a single year.

Close to 860 companies were involved in significant R&D projects of more than €100,000, with almost 140 companies engaged in substantial R&D projects of more than €1m spend.