Competitiveness has risen in last three years

IRISH industry’s competitiveness has improved over the last three years, according to a survey of companies employing 200,000 people.

The German-Irish Chamber of Industry and Commerce survey suggests the Irish economy will grow modestly over the next three years.

German-Irish Chamber President Helmut Clissmann said it is encouraging that most companies in the German-Irish business world are confident about their future in terms of direct investment and job creation “and it is particularly gratifying that 50% of the companies which took part in our survey believe that Irish competitiveness has improved in the past three years”.

He said the survey shows Ireland’s minimum wage, €8.65 an hour, is seen as a challenge for businesses.

Other main findings were:

* 50% of companies in the survey say they will increase employment in the next two years.

* 40% intend to invest in Ireland in the next two years.

* For 50% of companies, the Irish 12.5% corporation tax rate is not a significant factor in their decision to stay or further invest in Ireland.

The chief executive of the German-Irish Chamber of Commerce, Ralf Lissek, said that German companies are more cautious about Irish economic prospects: “The forecasts for Irish economic growth from our members – 1.2% in 2011, 2% in 2012 and 2.6% in 2013 – are more conservative than forecasts from other research institutes and economic commentators. ”

When asked what sectors offer most opportunities for Irish companies trading with Germany, 57% of respondents referred to the food sector, 41% to information technology, 40% to services, 35% to pharma and 30% to medical technology.

When the question was reversed and respondents were asked what sectors offered the greatest opportunities for German companies in Ireland, 68% mentioned renewable energy, 59% energy efficiency, 35% medical technology, 29% pharma, 22% biotechnology and 20% food.

Mr Lissek also said that it was a matter of concern that almost two-thirds of those surveyed felt that not enough was being done to encourage the teaching of foreign languages in Irish schools.