Bid to boost supply chain market share

If indigenous firms increase their share of the €80bn supply chain market for the multinational sector then it would generate €500m in added revenue and create 1,000 extra jobs.

Multinationals based in Ireland spend roughly €80bn every year sourcing goods and services, but only €11bn is supplied by domestic companies, which equates to a 14% market share.

Minister for Jobs, Enterprise and Innovation Richard Bruton has announced a jobs strategy aimed at helping to increase this market share to 19%. In a joint strategy between the IDA and Enterprise Ireland, 65 multinationals have been identified that “offer particular potential to Irish companies”.

Under the programme, support will be offered to Enterprise Ireland companies to help meet the needs of these multinationals, including setting up meetings with the key procurement decision makers.

Mr Bruton said this initiative formed part of the 2012 Action Plan for Jobs announced last February, although he declined to say how many jobs had been created so far specifically by the strategy. Establishing micro finance funds, creating access to finance for SMEs and opening up new sectors of the economy were all part of February’s jobs initiative and good progress had been made in all of these areas, said the minister. “We would like to deepen these relationships in 2013,” he added.

Speaking to reporters at the announcement Mr Bruton said Ireland’s 12.5% corporate tax rate was a cornerstone of the Government’s future growth strategy and it would not be changed. Moreover, some international press coverage depicting Ireland as a tax haven is inaccurate and unfair because Ireland has a transparent and compliant tax framework.

“A key part of the Government’s plan for jobs and growth is ensuring that we derive more benefit, as an economy, from the amazing group of world-leading multinational companies that have located operations in Ireland,” said Mr Bruton.

Chief executive of Enterprise Ireland Frank Ryan said: “We would encourage more multinational companies to engage with world-class Irish companies and get a sense of the fantastic products and services that can add significant value to their operations both here and globally.”

IDA CEO, Barry O’Leary, said: “IDA client companies work with a range of Irish suppliers and sub-suppliers across a range of sectors. IDA Ireland is committed to acting as an intermediary to create even more of these sourcing partnerships in the future.”