Free Zone has first net job gain in 4 years

Shannon Development recorded the first net jobs gain at the Shannon Free Zone last year for the first time in four years.

New figures released by the regional development agency show that the Free Zone recorded a net gain of 32 jobs with the creation of 499 jobs and loss of 467.

It is the first time since 2008 that Shannon Development has recorded a net gain, and a spokeswoman said “the agency is optimistic the Shannon Free Zone has turned a corner”.

Ironically, the return to net jobs growth comes after the Government has decided to remove the job promotion functions from Shannon Development as part of the restructuring of Shannon Airport.

The spokeswoman said: “Given the adverse global economic climate the company is encouraged by the growth at Shannon Free Zone, which was also reflected in the indigenous sector there. Over the past three years indigenous jobs at the Free Zone have increased by over 12% from 953 to 1,076.”

Shannon Free Zone is home to over 100 companies, employing over 7,700 and generating over €3bn in annual sales, 94% of which are to export markets. It is one of the largest multi-sectoral business parks in Ireland.

The net gain of 32 follows a net jobs loss of 174 in 2011 — a positive swing of 206. The zone recorded a net job loss of 254 in 2010 and 787 in 2009.

The spokeswoman said: “Considerable progress was made on marketing the zone to potential overseas investors in 2012. During the year Shannon Development succeeded in securing 23 itineraries from prospective new clients for the Shannon Free Zone, ten of which were generated in partnership with IDA Ireland.

She said: “Despite the economic downturn, Shannon Free Zone continues to be a strong revenue generator for the local economy.” Companies based at the Free Zone contribute over €620m to the Irish and Shannon region economies annually in areas such as staff payroll, materials and services.

As part of the restructuring of Shannon Airport, the airport and Shannon Development are to be formally merged later this year with the airport having the benefit of Shannon Development’s annual rent roll. Latest figures show that the company had a rent income of €12m in 2011.

The latest figures available show Shannon Development recorded the highest cost per job created in 2011 of enterprise agencies under the aegis of the Department of Jobs, Enterprise and Innovation — €16,139.

This compared to €14,202 at the IDA and €12,024 at Enterprise Ireland.