European Opportunities for Export

Deirdre McPartlinLetterkenny, 10 March 2017

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Enterprise Ireland’s role

Driving the growth of Irish industry

• Support 5,000 Irish owned businesses across all sectors of manufacturing and internationally traded services

• Responsibility for FDI in food

• Mandate to drive collaboration and commercialisation of state-funded research

• 32 international offices

• 9 regional offices

Exports +€5bn to €26bn p.a

67% outside UK

+60,000 new Jobs Sustain existing

+50% R&D Spend€1.25bn p.a.

+€4bn to €27bn Spend in Economy p.a.

What success looks like in 2020

Greater scale in Irish enterprise– at company, market, sector

and regional level

Strategic shift in the global footprint – in markets outside the UK

Unprecedented contribution by Irish enterprise to powering the Irish economy

• Dependency on UK market – possible market contraction and price pressures

• Currency – impact on profits; delayed decision making due to uncertainty

• Customers – Brexit will also impact your customers

• Competition – expect new and increased competition

• Supply chain – impact on cost, certainty and quality

• Transport and logistics – established transport routes may no longer be optimal

• Regulations and standards – may change for exporting to and importing from UK

• Customs, tariffs and taxation – may see an increase in administration, cost and time

• Movement of people – possible restrictions

Are you Brexit Ready?Nine areas of exposure

Competitiveness Innovation and R&D

Financial Management

Expanding Reach

Four building blocks

Optimising people, equipment, technology, and information in sourcing, production and delivery of goods and services

Development of better solutions (new or improved products services or processes) to provide a strong competitive edge

Diversifying into new international markets

and new market segments within the

UK and elsewhere

Tracking and management of assets, income and expenditure in parallel with the development of strategic plans for cost management, revenue generation and funding.

Expanding ReachDiversifying into new international markets and new market segments within the UK and elsewhere

Expanding your reach

Research and select

new markets

Validate the opportunity

Enter market and

build

Sector Patterns in Expanding Export Footprint

• Software/ICT• Agricultural Machinery• Sub-Supply• Construction Products• Construction & Engineering

Services• Food• Consumer Goods• Lifesciences

Some Market Opportunities• Benelux: • NL a viable alternative to UK – closeness in taste, culture etc• Proctor & Gamble test all consumer products in Belgium (Walloon and

Flanders provide insights into German and French tastes)• Strong construction & engineering footprint from Ireland for pharma sector –

emerging opportunities in Biotech, Datacentres and Food Processing• Antwerp and Rotterdam continue to expand as major Transport & Logistics

hubs for companies with relevant solutions• Opportunities for agriculture solutions – NL is second largest agri-food

exporter• Netherlands a leader in digital and creative sectors – opportunities for

Ireland’s talent management cluster

• Nordics: • Sweden ranked most innovative country in Europe, followed by Denmark and

Finland• This makes it an IoT hotbed (4x more connected devices than anywhere else)• Fintech – banks trying to identify how to future proof their businesses in

changing world. Have a track record as early adopters• Automotive – Volvo, Scandia, MAN etc• High tech construction – Data centres, emerging pharma opportunities• “Unicorn” hotbed – opportunities for talent management cluster to service this

sector• Med-tech & digital healthcare – 10 major hospital projects in pipeline

• France:• Paris as reinvigorated Finance Centre post Brexit• Rail Infrastructure• Elon Musk – Hyperloop• Digital opportunities

• Germany, Austria, Switzerland: • Agritech – increased drive towards farm mechanization• Fintech – Frankfurt and Zurich already major financial centres. 20k new jobs

expected for Frankfurt post Brexit• Digital – Berlin acknowledged as European tech capital• Construction – strong growth. Datacentres & smart home important niche

opportunities

How do we determine most attractive market?

• What is the market size (for my products)?• Is the market growing? At what speed?• Are prospects investing in new projects? What is the appetite to

spend?• How competitive is it – how many players are in our space?• Is our value proposition as strong here as it is in existing markets?• How does pricing compare to markets we are currently in?• What is the business culture – can we adapt to it?• Are market conditions stable (political, economic, regulatory)?

Which markets are accessible for us?

• Do we have existing contacts in-market?• Do some of our existing customers have a presence there?• Is flight connectivity/frequency an advantage?• What are the barriers to entry? Can they be easily overcome?• Do our products/service need to be adapted? What effort is required

and is it sustainable?• Will language be a significant barrier?

Expanding ReachDiversifying into new international markets and new market segments within the UK and elsewhere

The Journey

Research and select

new markets

Validate the opportunity

Enter market and

build

The Critical Factors for Export Success…

…and the nuances of these for success in Europe

Expanding ReachDiversifying into new international markets and new

market segments within the UK and elsewhere

Expanding your reach

EI Supports

• Market Research Centre• Sales and marketing

programmes• Mentors

• Overseas network• Tools to validate opportunity

• Feasibility funding• Market study visits

• Funding for business development, e-

marketing• Trade missions

Research and select

new markets

Validate the opportunity

Enter market and

build

Accessing EI supports

• Guide will be available to all to assist in examining exposure to Brexit

• Suite of financial and non-financial supports for EI clients

• Depending on stage of development use diagnostic tools to assess and prioritise needs

• Access and further information via your usual EI contact point or use DA finder on https://www.enterprise-ireland.com/en/About-Us/Our-People/

• LEO clients should contact local LEO office

We helped them riseto another level.