The latest industrial production data from the CSO has shown that turnover from manufacturing slumped by 11% last year.
The figures also showed that manufacturing output fell by 1.8% in 2009.
IBEC said that the latest industrial production data highlight the ongoing challenges faced by the manufacturing sector.
IBEC economist Reetta Suonperä said: “It is clear from the data that the indigenous sector in particular is in need of targeted, temporary stimulus measures in order to overcome this exceptional global crisis.
“The data show that manufacturing output overall fell by 1.8% in 2009 – a reasonable performance when compared with double-digit drops in our trading partners. Turnover, however, fell by a staggering 11% during the year.
“This highlights the price pressures that companies in the manufacturing sector face and emphasises the need urgent need to reduce the cost of doing business in Ireland,” concluded Ms Suonperä.