Innovating for Recovery: CW Applied Technology

On the first episode in our new series Innovating for Recovery, we are joined by the Managing Director of electronics company CW Applied Technology, John O’Connell. In response to the Covid-19 crisis, CW Applied Technology designed and manufactured a portable Room UV-C Steriliser. 

The portable steriliser is designed for virtually any room that needs air and surface disinfection, including sterile areas, laboratories, unoccupied patient room. On the show, we discuss, the origins of the idea, and its variety of uses, particularly during the Covid-19 pandemic.

 

Evolve UK – New UK importing rules with HMRC – Establishing a UK presence webinar

 

The Evolve UK webinar series highlights the opportunities for Irish companies interested in doing business with the UK.

This webinar examines the upcoming rule changes to importing into the UK with insights from

– Deirdre McPartlin, UK Manager at Enterprise Ireland

– Margaret Whitby, Head of Stakeholder Engagement at BPDG

– Claire Wilson, Stakeholder Engagement at HMRC Customs and Borders unit

– Ruth Potter, Partner at Ecovis

– Gerry Collins, Managing Partner at Ecovis

Access key insights from sectoral experts with the Evolve UK webinar series.

Evolve UK – Food and Drink Manufacturing Report

The UK Food and Drink sector is the largest manufacturing industry in the UK and is worth an estimated  £31.1bn to the economy according to the Food and Drink Federation.

This Evolve UK report provides an

  • overview of the UK Food and Drink Manufacturing sector

  • analysis of the key trends affecting the sector

  • profiles of relevant sub-sectors and regional manufacturing clusters

We also published a sectoral webinar with expert insights provided by Fintan O’Leary, Managing Director, Levercliff. Watch the webinar here.

Companies of every size, from all sectors, are benefiting from the Sustaining Enterprise Fund

As businesses across Ireland prepare to accelerate their recovery from the impact of Covid-19, Enterprise Ireland has seen a significant increase in demand for the Sustaining Enterprise Fund (SEF) Launched in April of this year specifically to help companies negatively impacted by the pandemic, the SEF offers qualifying businesses funding of up to €800,000 consisting of up to €200,000 in non-repayable grants and a further €600,000 in repayable support over five years with a grace period of three years before repayments commence.

“Up to 50pc of the funding can be made up of the non-repayable grant subject to a maximum of €200,000,” says Leo McAdams, Divisional Manager with Enterprise Ireland’s Investment Services Division.

The funding supports the implementation of a Business Sustainment Plan, which must be provided by the company when applying for assistance under the SEF.

“The SEF funding is time-limited, so it is important that businesses apply as soon as possible for the funding they need to stabilise, reset, and accelerate their recovery.”

One business which has already benefited from SEF funding is JC Walsh & Sons, owners of the iconic Connemara Marble brand. The company supplies three key markets – giftware products for the tourism retail sector, jewellery through TV and online retailers such as QVC Channel and The Irish Store, and religious goods including rosary beads to customers in Ireland and the UK.

“Covid-19 came at the worst possible time for us,” says Managing Director Stephen Walsh. “In early March every cent of our working capital was tied up in stock ahead of what everyone expected to be a bumper tourism season. Our customers expect just-in-time delivery, they don’t want to be told their order will be ready in six weeks. It has to be available immediately, so we have to invest in stock at the beginning of each year. The tourism retail business stopped dead, with sales falling by 95pc.”

The collapse in global tourism dealt the business a heavy blow. “Tourism retail here in Ireland is geared towards overseas visitors. There is no real domestic market for it. Fifty per cent of what we produce is exported, with the US being our key market. A lot of our US customers are destination venues and all these places are closed now.”

That saw cashflow drying up as well. “We had no spare money and nothing was coming in. The only game in town really was the TV business, online retailers, and our own retail website. Our religious goods business also held up fairly well in the UK, with customers including Westminster Abbey and St Paul’s Cathedral.”

The response was swift. “We did a couple of things when Covid hit. We took immediate action and put our staff on the Temporary Wage Subsidy Scheme and we effectively ran the business by candlelight. We also called Enterprise Ireland.”

The relationship with Enterprise Ireland goes back a long way. “We have been clients since 1963 when my father went on a trade mission to the US with them,” says Walsh. “Enterprise Ireland did three things when we contacted them earlier in the year – they supported us, they encouraged us, and they believed in us. We got an immediate response They appointed a business adviser who did a report confirming that we had a viable business and they then hooked us up with a consultant to write the Business Sustainment Plan.”

The company received €200,000 in SEF funding in late August – €100,000 in a cash grant and €100,000 in a repayable advance. “The beauty of the advance is you don’t have to start repayments until after three years. You can also use the strategic financial plan approved by Enterprise Ireland to leverage bank funding as well. The SEF has given us the cash to support the business and invest in new product development as well as develop our online business. It has kept us afloat and in the game until such time as the tourism retail market resumes. I would encourage other companies to talk to Enterprise Ireland. It’s an organisation that says yes before it says no. They really have their clients’ best interests at heart.”

To be eligible for funding under the SEF companies must be in the manufacturing or internationally traded services sectors, employ more than 10 people and have seen a fall in turnover or expect to see a fall of 15pc, or have experienced significantly increased costs as a result of Covid-19.

“Companies of every size and across all sectors of the economy are benefiting from the SEF,” says Leo McAdams. “The Fund helps Irish businesses to reboot after Covid-19 by providing the finance to stabilise cash flow, adapt operations, and innovate to meet new customer needs. Businesses wishing to accelerate their recovery should contact Enterprise Ireland now.”

Enterprise Ireland has a comprehensive suite of supports available for companies at all stages of development, under Sustaining Enterprise Fund and Innovative Start-Up funding, as well as other funding offers.

Find out more about the SEF supports here

Brexit and Intellectual Property – Webinar

The UK’s decision to leave the EU will impact many aspects of business including Intellectual Property Rights (IPR).

Our webinar explained the effects of Brexit on the different types of IPR, and discussed practical answers to questions like:

  • Will my existing IP rights be sufficient after Brexit?

  • What changes might I need to make to my IP portfolio?

  • Do my licence and distributor agreements cover the relevant territories?

  • If I am importing or exporting goods, have the IP rights contained in the goods been exhausted in the relevant territory?

  • Will my custom notifications still apply in the UK and EU?

Hosted by national broadcaster and journalist – Jonathan Healy with insights from:

  • Peter MacLachlan and Cherrie Stewart of MacLachlan & Donaldson

  • Joe Doyle, Intellectual Property Manager in Enterprise Ireland

  • Emer O’Byrne of Enterprise Ireland’s Brexit Unit.

Watch here 

Automotive supply chain and purchasing strategy changes in the Covid era

Simon Schwengle is a partner at KBC (Kemeny Boehme and Company) and an expert in purchasing and supply chain issues with focus on automotive. Project objectives include supply chain/purchasing strategies, preventive supply chain management, cost initiatives, and reactive supply security. in the following interview with Global Ambition Simon talks about the impact of COVID-19 on the industry and the changes it will bring. 

 

  • Global Ambition: The current supply chain structures in the automotive industry is changing drastically due to the COVID19 situation. In general, in which areas of the relationships between OEMs and related Tiers do you see the biggest impact?               

Simon Schwengle: We are currently in the second phase of the impact of COVID-19 on OEMs and their multi-tier supply chains. The focus has been on ensuring the short-term, highly critical supply of series production requirements, on supplying development/research and protection requirements as well as keeping to industrialisation schedules for tool and system suppliers. It is the second phase that has a much greater impact on supplier relationships along the entire supply chain in the long term by focusing on costs. Many suppliers are already attempting to request reimbursement from OEMs for additional costs both in upkeep and general continuation of production as well as for the discontinuation of previously agreed discounts. The OEMs will take a tough approach in this regard, while always precisely assessing the risk of impacting supply. Suppliers with professional claim management will have an advantage over competitors. A general restructuring of the supply chain in line with geographical considerations (as some reports in the press have suggested) will not be possible in the short or medium term, and in the long term, cost pressure will continue to be the deciding factor when selecting locations and therefore when developing supply chains. However, OEMs will be much more interested in transparency across the entire supply chain (from second to n-tier suppliers), as well as the chain’s management and price structure.

              

  • Global Ambition: Demands in all areas are shifting and in most cases they unexpectedly dropped. What challenges do you see suppliers facing in their dealings with buyers and customers, considering pre-placed orders, long-term contracts, related claims and their overall annual planning?  

Simon Schwengle: At the moment, suppliers are, more than ever, having to manage conflicting objectives, including ensuring liquidity, maintaining supply outputs and controlling costs. As things stand, there are far fewer insolvencies than expected. The tools offered by governments are effective and reserves set aside by the OEMs are less strained than expected so far. As a result, the first big cases of insolvency have all been ailing companies struggling with problems that go beyond the impact of COVID-19. However, liquidity measures still need to be taken in good time, both with regard to customers and concerning a company’s own suppliers. These measures can reach from amending terms of payment to detecting the need/option for shifts early on. To ensure supply – an objective that can sometimes stand in stark contrast to ensuring liquidity – suppliers that have a great deal of flexibility within their own production and along their supply chains are at a clear advantage compared to the competition. As a general rule, agreements and EDIs should always be documented/archived, customers’ terms of purchase need to be interpreted correctly and additional costs always need to be approved to provide a professional basis for processing claims. Controlling costs will start to become the main focus in the fourth quarter of 2020. The volumes required by OEMs will fall by 20% to 30% in the current and coming year. Any and all part prices and investment calculations will need to be revised. This is another area where suppliers need to be professional in order to present plausible claims to customers and effectively guard against claims by their own suppliers and OEMs.

              

  • Global Ambition: Do you have any suggestions or common practices in mind for companies that deal with claims, either on the supplier or the customer side?

Simon: For us, there are two important dimensions: The analytical dimension and the strategic/tactical dimension. Analytical and detailed preparation is the foundation of claim management. In this regard, “players” with a good basis of facts will also be able to assess situations correctly and generate a coherent external perspective. In our experience, suppliers with professional change management are much more successful here. Remnant costs should become the focus for suppliers if quantities fall. Additional information, such as the progression of raw material prices (traded or not listed) or public company ratings, can also be helpful. However, the strategic, tactical dimension is usually the more important one. The key questions here are: What is my position at the customer compared to competitors? Which tenders are outstanding? Which pending payments can I use? The OEMs are traditionally in a very strong position in this regard. They will attempt to use the pessimistic forecasts as a way to pressure the suppliers in their portfolios.

 

  • Global Ambition: How could the procurement of products in the industry change – considering price competition and development/implementation of new technologies?  

Simon Schwengle: I don’t have a very precise answer for you: It really depends… Generally speaking, OEMs align their supply chains with the target dimensions of cost, quality, flexibility, innovation and sustainability. The last aspect, in particular, will see the pressure on supply chains with high energy consumption increase the most. Depending on the product/component groups, the contributions are designed for the target dimensions in order to avoid cost increases in favour of achieving other objectives. New technology, either on the product or in the production process, is therefore generally an opportunity to increase prices or reduce costs. However, this only applies if old technologies made the biggest contribution to achieving cost objectives prior to COVID-19 – either in skipping new development cycles (negative for supplier development revenue) or in part prices.

 

  • Global Ambition: Speaking about technological development: Which areas of the modern technologies do you think will be pushed out by OEMs and Tiers, and are there sub-sectors where you expect somewhat ‘normal investment’ even in the near future?

Simon Schwengle: We differentiate between the following clusters: New technologies, regulatory requirements and classic automotive. The latter will become more and more difficult to place on the market in the near future. There will be big players offering scaled options for unprofitable/unattractive scopes, resulting in new dependencies between OEMs and suppliers. For products depending on regulatory requirements, there will continue to be moderate growth. Requirements are on the rise (and can quickly lead to big problems and pose big risks, as the example of the RDE introduction shows) in end-customer markets across the globe. New technologies are following the major e-mobility trends with regard to drive concepts, autonomous driving and expanded functions for automated driving assistance – that is to say increasing E/E scopes in vehicles – and the expansion of networked services and mobility services for vehicle users.

 

  • Global Ambition: Lastly, what do you recommend companies to consider when positioning themselves towards their customers after the industry ramped up again?

Simon Schwengle: Recovery and return to old volumes for conventional automotive is not realistic until at least 2022, and the ordered volume scenarios for the coming years will not be achieved for the time being. The price demands, as well as all other requirements from OEMs, will still remain unchanged, however. There will be adjustments in supplier markets – so make sure your reaction to short-term enquiries from customers is quick and well-considered. Use opportunities offered by your existing customers – horizontal integration can be an important driver for revenue. Find sensible ways of diversifying without making big investments – vertical cooperation can also contribute to a better cost structure along your own supply chain. Increase flexibility for manufacturing companies – if this did not already happen before COVID-19.

 

The African opportunity for Irish firms

There is a tendency among people in Europe and the rest of the Developed World to take a somewhat negative view of Africa. While the continent certainly does have its problems, the fact remains that Africa presents huge opportunities for Irish firms in a variety of sectors, including agritech, life sciences, education, fintech, construction, ICT and other digital technologies.

And the extent of the opportunity is vast. There are 46countries in Sub-Saharan Africa, with a total population of 1.2 billion. According to the World Bank, between 10% and 15% of those people are middle class. Furthermore, there are more people earning over $25,000 a year in Africa than in India.

Africa is the second-largest landmass in the world after Russia and has more cities with a population of over 1 million than the US.

Overall, the population of Sub-Saharan Africa is set to double to 2.5 billion by 2060. That will give the continent a very large cohort of young people. While the rest of the world is greying the African population is getting younger.

At an individual country level, Nigeria has a population of 200 million at present. That is set to grow to 400 million by 2060 when it will have overtaken the US in population terms. Ethiopia has more than 100 million people at present and that is also set to double by 2060 and has been the fastest-growing economy in the world over the last two years (10% annum).

Sub-Saharan Africa pre-Covid-19 was the second-fastest growing economic region in the world after South East Asia. English is widely spoken, while the time zones in Africa are similar to Ireland’s.

The middle-class proportion of the population is also set to continue to grow, further adding to the scale of the opportunity. That trend is largely being driven by increased urbanisation, with people moving from the land to the cities in increasing numbers.

Vast opportunities in Africa

Africa also possesses vast mineral wealth. Just about every mineral required by modern industry can be found in Africa. In fact, every mineral the world needs can be found in the Democratic Republic of Congo alone.

The continent is also rich in natural resources, with major gas finds off Mozambique being larger than many of those found in the Arabian Gulf. Meanwhile, companies such as Tullow Oil are active in Ghana, Kenya, and Uganda. Quite a few African countries are becoming oil producers and exporters, while others are growing wealthy from minerals and precious metals exports.

Agriculture will be a key driver of opportunities for Irish firms. Every country in the African Union has a stated ambition to become self-sufficient in food in the coming years. This is driven by the simple imperative that foreign exchange is not available to import food. Population growth will drive increasing demand for food and that in turn will provide openings for Irish agritech companies.

These companies can share their knowledge to help African farmers and food producers to increase yields. Irish farming can produce ten times what we consume as a nation and this capability can be transferred. For example, Irish know-how has helped Kenyan potato farmers produce yields of 60 tonnes per hectare, a sixfold increase on previous output.

Education is another zone of opportunity. Up until 2020, some 400,000 Africans left to study abroad each year. In the main, they are studying for undergraduate and postgraduate degrees. The biggest market is Nigeria at present, while Africa has the world’s fastest-growing third-level sector. Pre-Covid-19, Ireland was only attracting around 900 students from Africa each year. There is clearly room for improvement there.

The African healthcare system is different from our own in terms of the fact that all of the growth is in the private sector. These new hospitals and clinics are demanding the very best when it comes to healthcare technologies and other supplies, and they offer a potentially lucrative opening for life sciences and medtech firms.

In the years ahead, much of Africa’s economic growth will be driven by digitisation. Young Africans tend to be much earlier adopters of digital technology than their European counterparts. This is in part due to the poor state of older technology infrastructure in much of Africa. Digital Technologies Irish technology companies, involved in areas such as Fintech and Telecommunications find multiple opportunities in Africa in the years ahead.

Other digital technologies experiencing strong demand growth there include all forms of e-health and e-travel.

Construction is another major opportunity. Africa has rapidly increasing needs for housing, hospitals, roads, industrial infrastructure, water and sanitation, datacentres. All sectors are relevant, and Ireland’s well-travelled construction industry is ideally positioned to meet that demand.

At present, Enterprise Ireland is supporting more than 400 client companies to do business in Sub-Saharan Africa. Growth has been very strong in recent years, with Irish exports to sub-Saharan Africa growing to well over €500 million. Growth in the key markets of Nigeria, South Africa, and Kenya reached 16%, 9% and 7%, respectively, during 2019 against a backdrop of a global growth for Irish exports.

Enterprise Ireland supports

Enterprise Ireland has adopted a hub-and-spoke strategy to assist client companies in this hugely complex region. We have offices in South Africa, Nigeria, and Kenya to cover the south, west and east of the continent, and we use these bases to support client companies working in neighbouring companies.

There are challenges, of course. Africa is a very big place, with a huge variety of different languages and cultures. Companies need to be very committed to the market and understand that African purchasers are quite sophisticated. The best strategy for most Irish firms will be to work with local partners. That presents its own challenges in terms of maintaining and developing the relationship from a distance. Through our e-program of meet the buyer and presentations of sectoral opportunities, Enterprise Ireland helps client firms to find local partners as well as to sustain relationships with them.

On the other hand, Ireland does have some natural advantages. As a small country in Europe which has come through a period of rapid development only quite recently, there is a natural affinity with many African countries. Furthermore, coming from a multi-cultural, highly educated, entrepreneurial country, Irish firms are able to deal with cultural and other differences with a sensitivity that makes them the envy of other exporting nations around the world.

For these and other reasons, it is time for us to open our eyes to the African opportunity. If you want to know more about Africa contact us in Enterprise Ireland 

Hannah Fraser Nordics

Market Watch – Nordics

“The Nordics is renowned for being one of the most progressive, open, and innovative regions in the world. Made up of Sweden, Denmark, Norway, Finland, and Iceland, it has not traditionally been the first choice for Irish exporters, but nonetheless the region presents opportunity for companies looking to expand their business internationally.

Over the last five years exports to the Nordics from Enterprise Ireland clients have grown 35% and there are now over 450 exporters to these markets. And despite Covid,  despite Covid, Hannah Fraser, Director Nordics Region, says opportunity exist for companies which bring innovation and something different to market.

The region is culturally and geographically close to Ireland and companies here are open to innovation and international partnerships. While negotiations often taken some time, once you secure a client, Nordic customers are committed, reliable and willing to pay a good price for solutions they can see value in.

In addition, Sweden, Norway and Denmark are in the top five countries for non-native English speakers, so language isn’t a barrier like other European markets – all of this adds up to a region which is lucrative and easy to do business in.

However, there is no denying that the pandemic has caused a lot of disruption to industry across the globe and in every sector – and the Nordic region is no different.

The response has differed country to country and while it remains to be seen how these measures will impact the economy in the long run, the Nordic economies were some of the strongest globally at the start of 2020 and look, so far, to be more resilient and set to recover faster than many of their European neighbours.

In the most recent figures, Sweden reported a GDP fall of 8.6% and Denmark of 7.4% during Q2. Norway’s GDP is estimated to have fallen around 7.1% between the months of March to May, while Finland, which undertook some of the stricter measures in the Nordics, reported a GDP fall of only 3.2%.

Irish companies working in the region have been affected in some ways. Travel restrictions, in particular, have proven challenging for staff travelling in and out of the region and also hindered Irish companies’ ability to meet customers, or potential customers, in person, which has affected the pipeline of new business for this year and into 2021.

But these issues are being addressed as firms have ramped up their digital presence to connect with customers in new ways and are now working more closely with local partners and suppliers. In addition, the supply chain across the Nordics is operational and the major construction sites, which many Irish companies are working on, have remained open throughout and business is now moving well in many areas.

Ultimately, the Nordics is a region of huge diversity and opportunities for companies differ from country to country and sector by sector. Well-established opportunities exist for Irish Engineering and Hi-Tech Construction companies, particularly around the construction and fit-out of the hyperscale data centres being built across the region.

There are also some emerging opportunities in areas like Fintech, Lifesciences, Telecoms and Energy and Irish firms have started to capitalise on these. In addition to this, one of the major themes for Nordic companies is around sustainability and building sustainable businesses.

Indeed the region has been at the forefront of sustainability for years and is considered to have some of the most ambitious climate action plans in the world – and this is an area in which Ireland can really learn from. Companies of all sizes here have a focus on building sustainable companies and integrating the UN Sustainable Development Goals into their business models.

This commitment to sustainability drives market demand for Irish products and services which in turn delivers solutions and innovation to areas such as renewable energy, electrification and energy efficiency.

There are a number of Irish companies which have successfully secured contracts in the Nordics in recent months including Mainline Power, CXIndex, Cambrist and XOcean – so the future does look bright for the region. Our team at Enterprise Ireland are on hand to support Irish companies to continue to grow and win business here.”

Get key insights on the supports available from Enterprise Ireland.

Evolve UK – Food and Drink Manufacturing Webinar

 

This webinar forms part of the Evolve UK Webinar series and examines the UK Food and Drink Manufacturing sector with expert insights provided by Fintan O’Leary, Managing Director, Levercliff.

Hosted by Kevin Fennelly of Enterprise Ireland UK, key points include:

  • An overview of the UK food and drink manufacturing sector

  • How Covid-19 has impacted the sector

  • The buyer sentiment in the Food and Drink Sector

  • The opportunities and challenges for Irish suppliers

  • The post-Brexit outlook in UK Food and Drink

Evolve UK – Construction Business Risk in Ireland & the UK post Brexit

 

Enterprise Ireland, Blake Morgan and LK Shields invite you to this unique Brexit webinar which will discuss the legal ramifications of Brexit for the UK and Irish construction markets.

The discussion will also include the economic and legal impacts of a “no deal” Brexit on the construction sector as well as commentary on the current state of negotiations.

The event will feature

Anne Corr, Construction Market Advisor for Enterprise Ireland.

Richard Wade, Partner & Head of Construction at UK law firm Blake Morgan

Jamie Ritchie, Partner in the Projects and Construction Team at Irish law firm LK Shields

Evolve UK  Report – Local Authority Investment Areas and the impact of Covid-19

The UK remains the largest export market for indigenous Irish companies. A new focus for Enterprise Ireland in the UK is to support Irish companies looking to enter the UK Local Authorities space.

This report, commissioned by Enterprise Ireland provides an overview of UK Local Authorities to help inform Irish companies of their structure and procurement processes.

Click the below image to view or download the complete report.

 

Evolve UK  Report – UK Local Authority Report: An Overview

The UK remains the largest export market for indigenous Irish companies.

A new focus for Enterprise Ireland in the UK is to support Irish companies looking to enter the UK Local Authorities space.

This report examines:

Where the requirements are

Who makes the decisions

What is the purchasing process

In short how do you sell to the local authority market. As with any sales process it starts with really knowing and understanding your customer. Read the below report to learn more.