IBEC: Irish manufacturing in need of 'emergency support'

Business group IBEC today said that manufacturing in Ireland is in need of emergency support from the Government.

The call comes in the wake of new Central Statistics Office data for industrial production in the final quarter of 2008.

Figures showed that output from the traditional manufacturing sector fell by 12.6% in December and was 4.7% lower in 2008 than in 2007.

Output from the food sector was 3.4% down on December 2007 levels, while textiles fell by 5%. Wood products by almost 40%, with the plastics and metals sectors all recording falls of between 15% and 30%.

However, whilst activity also weakened in the modern sector towards the end of last year, total output for 2008 was up 1.7% overall.

"Output in the traditional manufacturing sector in particular, faltered in the final quarter of the year," said IBEC Senior Economist Fergal O’Brien.

"Enterprises in this sector had already been badly affected by the slowing level of activity in the domestic economy, but a combination of the credit crisis and the weakness of sterling led to a further deterioration of trading conditions in recent months."

"December was a truly dreadful month for manufacturing, with output declining substantially in almost all sectors.

"It is clear that Ireland’s manufacturing sector is currently under considerable stress. Unless Government moves to provide emergency support for these enterprises, further job losses are inevitable in the coming months."