How Tenderscout is helping Irish companies to win business across the world

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“We’ve had Irish firms win contracts in Texas – companies who never would have looked for business beyond our shores before they started working with us.”

While every business relishes winning new contracts, few share the same enthusiasm for the tendering process. It can be laborious, consuming valuable time and requiring considerable investment, with success far from guaranteed.

One dynamic Dublin-based company, Tenderscout, is working to change that. Established by seasoned software developer and start-up specialist Tony Corrigan, the online platform was developed for Irish companies competing for tenders around the world.

Delivering expert support and specialised software, Tenderscout helps companies of all sizes to transform their approach to winning tenders, giving them the best chance to capitalise on a rapidly changing business landscape in which international borders may be no more restrictive than lines in the sand.

“We sit at the hub of the activities a company needs to complete in order to compete for global tenders,” explains Tony, who was inspired to set up the company after becoming frustrated with the inefficiencies he faced during tendering processes.

“That includes sourcing initial requests for tender, qualifying the job to assess if the company is a good fit, and then putting the proposal together.”

Irish businesses can use the Tenderscout platform to quickly find quality jobs posted around the world. The team, which numbers 10 and is growing, applies innovative technology to determine which clients are best-suited to win the tender, connecting them with expertly selected partners or consultants who can help deliver the proposal.

“For example, if you’re a business that would like to compete in Poland for an IT contract, we list companies that can provide required services in that market. That’s a huge advantage when competing internationally,” says Tony.

“We’re also building out a network of bid consultants around the world who can put together tender documents. We do some of this ourselves but primarily the platform is used to source the consultant with the expertise the bidding company needs.”

Expert knowledge of markets and sectors

Making connections with these consultants can be extremely powerful, Tony explains – whether to bridge geographical gaps and provide insights on language and cultural matters, or to offer specific sectoral subject matter expertise.

“If you’re tendering for a project to implement an IT system into a department of education, we can pair you with someone who has experience implementing IT systems into departments of education,” he explains.

Learnings from 3,000 tenders in four years

Tenderscout’s tried-and-tested framework allows the cost of partnerships to be managed to great effect.

“We’ve learned that consultants and the companies they serve don’t always share the same interests,” Tony comments. “It may be in the interests of a consultant for a job to last longer than a client company would like, for example.

By curating the relationship and providing a framework for how the process works, tenders can be developed for 60% of the cost.

We can deliver that because we’ve carried out 3,000 tenders over the past four years. It leaves us with a huge bank of reusable material, which means consultants don’t have to invent everything from scratch, so they can start working more quickly.”

Open your business to the world

One of Tenderscout’s major motivations is to change the status quo, in which most contracts are advertised and awarded to local companies.

“We work internationally ourselves, and we see that Irish companies are, in many cases, better placed to provide certain services than those in the US or Europe,” Tony says. “Particularly in areas such as software development, smart technologies, smart cities, internal productivity solutions, such as meeting room software, and other areas.

The issue is that companies are not always ambitious enough to look beyond their own borders. When they do, results are compelling. We’ve had Irish companies win contracts in Texas, companies who had never looked beyond Irish shores for business before they started working with us.”

Tony insists that companies should not allow fears or concerns about the tendering process to inhibit ambitions for growth.

“The barrier to success is not as high as people think when it comes to tendering,” he adds.

“If you were to take a random selection of tender documents and independently evaluate them, they’d score about 60%. To win, you’d need to be in the region of 90%.

“If you’re good at what you do, scoring highly shouldn’t be a problem. But the process itself can inhibit otherwise great bids.

“In short, if you put the proposal together well, you will win more often than will miss out.”

Going global with ambition

Tenderscout has become highly adept at navigating the international business landscape for clients, partly because their own journey has focused on international expansion, supported by Enterprise Ireland.

“We first became involved with Enterprise Ireland through the New Frontiers programme, then succeeded in getting a grant through the Competitive Start Fund in 2014,” recalls Tony. “From there, we were assigned an advisor, and were supported in research missions to the US and UK by the West Coast and London teams.”

While grant support was helpful in the company’s early days, the most valuable help, as with the company’s network of tendering consultants, came from creating connections and developing insights around the international markets.

“Enterprise Ireland’s support in connecting us with the local business community within each market and helping us to establish our credibility, made a real difference.”

Tech visionary Tony hopes more businesses will put their faith in the Tenderscout platform and use it to transform their fortunes.

“Tenderscout is the tool used by companies that win contracts,” says Tony. “If you’re in a situation in which you’re pitching for business, having Tenderscout in your corner is the best way to aim for success.”

Asia Pacific

Asia Pacific is flying high – time for Irish companies to get on board

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Tom Cusack, regional director for Asia Pacific at Enterprise Ireland, explains what Irish exporters can gain by exploring opportunities in the region.

“Always listen,” advised Dicky Yip, non-executive director of Chinese insurance giant PingAn and former chief executive of HSBC China, during his keynote speech at Enterprise Ireland’s Routes to Growth Asia Pacific, a major conference which brought together more than 400 Irish and international business people to explore export opportunities in the region.

“It takes time to understand each area’s cultural differences”, explained Yip.

The inaugural Routes to Growth Asia Pacific event offered a unique opportunity for networking and peer-learning to current and first-time exporters, with more than 100 potential buyers travelling to attend. Enterprise Ireland’s entire Asia Pacific team assisted companies with export plans and on-the-ground experience. Enterprise Ireland also launched a series of business guides to help companies better prepare for market entry.

Asia Pacific is home to two of the world’s three biggest economies

Stretching from Australia to India and China, Asia Pacific is home to half of the world’s population and two of its three biggest economies. By 2025, it will account for more than half of the world’s economic output. Similar trends are evident with growth rates, which range from 5% to 9%, compared to the 2-3% global average. Australia, in particular, has enjoyed over 25 years of continuous growth.

More than 600 Irish companies are currently doing business in the region, worth €2 billion annually.

Irish exports more than doubled in the last five years since breaking the €1 billion mark in 2012, delivering double-digit growth for Enterprise Ireland-supported companies in 2016, with an impressive 16% year-on year-gain. As the second-fastest growing region for Enterprise Ireland-backed companies, a 50% increase in exports is targeted by 2020. Opportunities for Irish businesses in sectors including aviation, fintech, international education, and construction and engineering are particularly promising.

“Ireland has emerged as one of the greatest global aviation hubs in recent times,” commented Dermot Mannion, former deputy chairman of Royal Brunei Airlines and former Aer Lingus CEO. “That is happening at a time when Asia Pacific is by far and away the fastest growing region for aviation. Over the next twenty years, the number of aircraft going into Asia Pacific will be equal to North America and Europe combined. We are very well positioned to take advantage of that.”

One example of Irish success in the sector is CAE Parc Aviation, who first began doing business there almost three decades ago, explained chief executive, Frank Collins. Today 45% of its worldwide business comes from Asian companies. CAE Parc has seven offices spread across five AsiaPac countries. In all, “it’s a massive market for us,” Collins said.

Speakers recommended reaching out to Enterprise Ireland for assistance and tapping into the Irish diaspora.

Work with Enterprise Ireland to expand in Asia Pacific

“You need to get out there on the ground, so use Enterprise Ireland and the Department of Foreign Affairs. There is always someone who can give you introductions,” said Paul Costigan, chief sales and marketing officer at Decawave.

Barry Napier, CEO of Cubic Telecom, first discussed the possibility of entering the region with Enterprise Ireland in 2010 and benefited from Irish embassies in the region. “Regulation is very different in every market. A key thing we leveraged from Enterprise Ireland was about laws and regulations, and how to work within the market,” said Napier.

Ireland’s connectivity to the Asia Pacific region will see a big boost in June 2018 with the launch of a direct flight between Dublin and Hong Kong with Cathay Pacific, the first ever direct flight from Ireland to the Asian mainland.

“Don’t underestimate the impact of having ‘Dublin’ on departure boards in Hong Kong will have,” said Mannion. “It will create a dynamic where companies in that part of the world will be interested, because it will be easier to do business here.”

That the Routes to Growth event was organised in partnership with Cathay Pacific is fitting. There is no doubt that the AsiaPac region is flying high. For Irish companies, it is time to get on board.

Visit our markets section for insights on Singapore and China and the opportunities for Irish companies.

This article was originally published in the Sunday Independent.

End of year results

Positive Results but New Year means New Markets

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Julie Sinnamon, CEO of Enterprise Ireland, describes how the agency will support Irish companies to target opportunities in key markets in 2018.

Despite the challenges and uncertainty created by Brexit, Irish companies continued to grow global exports in 2017, supporting strong job creation across all regions of Ireland. That positive trend was evident in the End of Year results Enterprise Ireland announced in January at the Dublin headquarters of client technology company Ding, with job creation figures up across every region, every county, and every sector on 2016.

The job creation figures were up on 2016, despite the uncertainty that Irish businesses faced in 2017 in the context of Brexit. 209,338 people are now employed in companies supported by Enterprise Ireland, the highest total employment achieved in the history of the agency. 19,000 new jobs were created across all regions in Ireland last year. The figure represents a net increase of 10,309 jobs for 2017, taking account of job losses. In line with total employment levels, the net increase in jobs, is the highest on record with Enterprise Ireland.

While we welcome these positive results, it not a time for complacency about the forecast for Irish companies in 2018. It is imperative that Irish businesses continue to build on the strength of their 2017 performance and implement robust plans to prepare for the impact of Brexit.

In recent months, Enterprise Ireland launched a number of new measures to strengthen the rural and regional economy and provide quicker access to innovation funding for exporting companies. The Market Discovery Fund is a new response from Enterprise Ireland to help companies to diversify in the context of Brexit. The fund supports Enterprise Ireland-backed companies to diversify into new markets and promote new products to existing markets. Three levels of funding are available to companies: up to €35,000, up to €75,000 and up to €150,000.

This latest initiative is just one example of the work Enterprise Ireland has undertaken to deliver our strategy, Build Scale, Expand Reach 2017-2020, focused on transforming the innovation and competitive capabilities of Irish companies, to help expand their global reach by diversifying into key export markets.

While the results for the first year of the strategy are encouraging, Brexit represents a huge challenge for Irish companies and is top of our agenda. The Market Discovery Fund, along with our intensive international programme of export-focused trade missions and our recently introduced Agile Innovation Fund, are key supports which are instrumental to helping even more companies grow and reach new export markets.

The Eurozone, and non-Eurozone European countries, have always been important markets for Irish companies but now their importance is significantly enhanced. Consolidating exports to the UK, while expanding the Irish export footprint in markets beyond the UK, is a high priority.

The strong 2017 performance by Irish businesses can be attributed to the continuing growth of an entrepreneurial climate for start-ups, allied to strong jobs growth in sectors such as construction, engineering and life sciences, which all saw an 8% increase. I was pleased to report the increase in female-led businesses, with 63 female-led start-ups receiving backing in 2017. 42% of Competitive Start Fund Approvals were to female-led start-ups.

It is encouraging that job creation was evenly spread across the country in 2017, with every county seeing increases. 64% of new jobs were created outside of Dublin, with the west, mid-west and north west seeing the largest level of increases for 2017 at 7%.

Whatever the outcome of the complex Brexit negotiations that lie ahead, it is vital that as a country we are ready to continue to support Irish companies to drive exports and expand to growing markets.

Last year, a new €60m Regional Enterprise Development Fund was launched to invest in the regional ecosystem. 4 new Regional Accelerators were established. €23m was invested in New Technology Centres – Irish Manufacturing Research and Meat Technology Ireland. 9 Regional Brexit Advisory Roadshows were held across the country. Irish Advantage digital campaign to promote sourcing from Ireland. 33% Increase in international Trade Missions and Events. 878 International buyer visits to Ireland. 1,391 New overseas contracts won by EI backed companies

The new Market Discovery Fund is just the first initiative of 2018 as we work with our partners in government and enterprise to help Irish companies build their scale and expand their reach whatever the challenges on the international horizon.

This article was originally published in the Sunday Independent.

US flag - exporting to the US

Top 10 Tips for Exporting to The USA

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Ireland enjoys a unique advantage in trading with the US because of our deep historical links. Relations between the two governments are exceptional; and cooperation at an institutional level is excellent including in areas such as research, innovation and education.

There is, without doubt, huge opportunity in the US. Around 700 Enterprise Ireland client companies are exporting there and companies like Aerogen, Fenergo, Cylon Controls, Candidate Manager and Rubicoin have set up offices and accelerated exports in the past 24 months. To date, over 20 clients have won contracts worth over €500,000.

1. Preparation

Before entering the US market, extensive research at home is strongly advised. Make contact with State agencies, relevant support organisations and companies who currently export to the US, if possible. Targeting the US usually requires additional financial and human resources, so to keep costs and operations manageable in such as geographically big country, first-time entrants are advised to segment the market and target a particular region or state. Give careful consideration to the resources needed to serve the selected market, for instance, will the operation use a direct or indirect sales channel. Some companies hire locally and others (often in the early stages) put a C-level member of the team in the market for a short period to get things off the ground.

2. Legal

Corporate – Confirm your corporate structure. Typically setting up a US subsidiary makes sense both for tax and liability reasons. Your US subsidiary also will need to appoint a registered agent, and “qualify to do business” in every state in which you have an office or similar presence.

Intellectual Property – Address US trademark issues defensively (confirming that no one else has prior registered or unregistered rights in respect of name and key brands); and offensively (by filing a US trademark application). Patent issues may need addressed depending on the business.

Contractual Terms and Conditions – These must be converted to the laws of a US state, for legal and commercial reasons.

Employment – Get professional employment advice locally. Most US employees do not have employment contracts but employers are bound by offer-letter terms, employee manuals and other undertakings. Also, ensure confidentiality and IP assignment agreements with all employees are established.

3. Tax Structuring and Compliance

Establish appropriate arm’s-length arrangements between the Irish parent and US subsidiary to separate taxable income. This is particularly important because US corporate tax rates (federal and state), totalling about 40% are typically three times the level in Ireland. Have appropriate compliance procedures in place to address federal and state corporate income tax, as well as other potentially relevant tax regimes (sales tax, personal property tax, etc.), particularly at the state and local level.

4. Trends

US import trends indicate high potential for Irish exporters. Meat imports were valued at €9.4bn which was the second fastest-growing import; while dairy went up over 40% to €2.8 billion. The US also imports pharmaceuticals worth $86.1 billion; medical and technical equipment worth $78.3 billion and organic chemicals worth $52.1 billion. These are all among the top 10 Irish exports by category. It is also a big importer in sectors such as aviation and aerospace, mechanical and electronic equipment, insurance and ICT services – all of which are growing in Ireland.

5. Banking

It can be difficult for a non-US company to set up banking for its US subsidiary. Some banks are particularly focused on banking high-growth companies on a trans-Atlantic basis, which can help ease the process.

6. Immigration

Most Irish companies exporting to the US find it critical to establish a presence in the market. This is particularly true in software and high-tech. An estimated 65% of Irish exporters to the US have a full-time presence, ranging from a single-person sales office to manufacturing operations with thousands of employees. Route-to-market decisions are crucial and the role of agents and distributors cannot be ignored. Buyers rarely purchase directly from manufacturers, particularly those from overseas. So fulfilment centres have become increasingly important in the supply-chain, especially since the growth of e-business. This approach is better suited to non-perishable items and consumer products.

7. Insurance

The US is a high-risk environment. Get an insurance broker with trans-Atlantic experience to advise on types of cover, terms and limits.

8. Recruitment

The most difficult aspect of setting up in the US is finding the right people. Obtaining recommendations from trusted people including investors and advisors is often the best way. Otherwise get professional support (especially with sales people). Consider outsourcing for book-keeping, employee tax withholding, HR and mandatory employee insurance and benefits, and similar matters. Also note that visas permitting Irish personnel deployed in the US to work are needed. Allow three to four months to sort this out.

9. Offices

Get professional advice on office space and other properties such as co-working spaces (like WeWork), accommodation offices (like Regus) or renting an individual premises.

10. Incentives and Supports

US supports should not be overlooked. Federal, state and local development agencies and international chambers of commerce can provide very useful support. State and local incentives for investment and job creation also may be available.

 

Unlocking Europe’s Great Engineering Markets

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Taoglas tunes into Germany and France

Established in 2004, Taoglas provides advanced antenna and RF (radio frequency) solutions to the world’s leading wireless and Internet of Things (IoT) companies. Over the last decade, the company has gained a reputation for innovation built on its world-class design, support and test centres based in Ireland, Germany, Taiwan and the USA. Since 2015, Taoglas has launched over 100 new products onto the market.

The County Wexford-based business works with its customers to provide solutions for their unique antenna and RF challenges. In-house manufacturing takes place in its Taiwan and USA facilities, and company expertise and experience applies across different wireless and IoT use cases, from LTE to GNSS, DSRC, and NFC and beyond to 5G, gaining it success stories in telematics, automotive, metering, smart grid, wearables, medical devices, remote monitoring and high-speed video broadcasting.

Taoglas has recently established offices in France. French sales manager Sam McCarthy explains that the decision to establish a presence in France isn’t related to Brexit but rather builds on the success the company has enjoyed in the German market since setting up an office in Munich in 2015.

For an Irish engineering company looking to this market, a flair for the cutting edge needs to be at the heart of the offering, he adds. “For the engineering sector, in particular, you need to have innovation on your side. There are a lot of French companies that are very good at what they do and, if you are just good at doing something, you’ll find you have plenty of competition here.”

In France, the company is targeting particular opportunities in the smart metering market, as well as the automotive and digital signage sectors. The French office was opened in mid-2016 and McCarthy says the step of putting someone on the ground is a potentially transformative one for any ambitious Irish company looking to grow there. “The fact of having someone here, as opposed to managing the market from Ireland, is the difference between night and day. Customers here don’t learn about the company in the same way unless they have someone in front of them and, equally, the company can’t gain the same understanding of the marketplace without a presence on the ground.”

Establishing that presence requires both fluent French and a strong grounding in French business culture: “Formality is at the heart of the French way of doing business. It’s important to understand the subtleties of this as you set out to build relationships,” he told The Market.

While France is famous for a certain level of bureaucracy around employment, he adds that establishing an office need not be an onerous decision. “As long as the company presence is focused on sales, things don’t need to get complicated. As we grow and expand here, it will become a more sophisticated operation, but our experience is that for any company looking to set up a sales presence, there are solutions providers that eliminate the need to worry about excessive costs or paperwork.”

Kerry Abrasives expands out from Germany, Switzerland and Austria

A precision manufacturer of engineered abrasives, Kerry Abrasives was established in 1998 in Listowel by co-founders Liam Brosnan and Peter Mc Kenzie-Vass. The company’s diverse client base includes aerospace, automotive, cutlery and hand tools, bearings and medical device, bringing a natural international focus to its activities. Sales and marketing manager Ina Baumann explains that the very diversity of its portfolio has to be factored into its growth and development strategy.

“Being in so many individual industries can be challenging in terms of focus. We tend to work by product or industry sector and develop markets both from a product focus and a geographic base.”

The Kerry headquartered business is in the somewhat unusual position of having its more established markets in central Europe, particularly Germany, Switzerland and Austria, and seeing the UK as more of a development opportunity.

Using a reseller model to sell to specific clients, the company is developing a distribution network to extend its reach in Central Europe, targeting growth particularly in Slovakia, Slovenia, Hungary and Poland, over the coming years.

Baumann says that the business leverages its standing in Germany through participation in events such as GrindTec, a flagship event for the industry. “GrindTec is the main industry trade event, and it attracts a lot of interest from Eastern Europe businesses who want to see the latest development. It isn’t just the large companies with manufacturing facilities that are there; smaller indigenous companies also attend. They are looking to Germany and western Europe for new ideas,” she told The Market.

“The level we play at is a little above the normal abrasive. Our products are customised, and we go the extra step to deliver a better finish and real life efficiencies. If you can deliver that you can hold your customer; price is not the issue.”

While Brexit is creating uncertainty for some, Baumann says that for a company already focused on the Eurozone, “it’s very much business as usual. You have to put in effort with a new client, in terms of testing, modifying and getting approval, but growth is happening, and we are positive.”

Mergon targets Central Europe’s massive manufacturing base

Established in 1981, Mergon is an Irish company with operations in Ireland, the Czech Republic and the US. Recognised internationally in the area of technical moulding, the company designs, manufactures and assembles components for clients in the automotive, industrial and healthcare sectors. Mergon made headlines in the 2014 World Cup when it was revealed that the 79,000 seats in Rio’s Maracana stadium had been manufactured by the company, both at its Castlepollard plant in Co Westmeath and its facility in Brno, Czech Republic. In 2016, the company confirmed its standing as an international player with the opening of the Mergon Innovation Centre in Castlepollard.

Sales and manufacturing director Tom Mullen explains that the opening of the facility in Czech Republic in 2004 has been instrumental in its growth in Central and Eastern Europe. The facility opened at a time when costs were increasing in Ireland but also responded to developments in a part of Europe that was becoming a major manufacturing hub, particularly in the automotive sector. This is an industry where “to grow sales and deal with rising costs, you needed to be close to the customer”.

Mullen says that achieving the success they’ve found in Central Europe “would have be very difficult without the Brno plant, as we wouldn’t have been able to grow sales as aggressively. If you don’t have presence, it can be hard to convince your customer that you can supply them. Once we established here, that presence has actually supported our manufacturing capability in Ireland. We can switch capacity and supply from both locations.” In its approach to Europe, the company divides the continent with strategic line supply from Czech Republic.

For an Irish company looking to expand in Central Europe, Mullen says it is “really no different to selling in any other part of Europe”, but adds that “having people who can speak the language and know the culture is certainly important. It wouldn’t be as effective if we were to try to do the same thing with an Irish sales team”.

The opportunity represented by the automotive industry in the region has, if anything, only increased over the years. The Škoda auto plant has its headquarters in Mladá Boleslav, Czech Republic, while neighbouring Slovakia holds the title of the world’s largest producer of cars per capita, with Volkswagen, PSA Peugeot Citroen and Kia Motors all having major facilities there. While it is a prestigious industry to be part of, Mullen points out that winning clients will usually come down to the two particular drivers, namely being the best and the best value, and suppliers have to prove themselves in terms of technical capability, consistency, quality and ability to delivery on time.

As regards the tendency of Irish companies to focus on the UK, he ascribes it to a general trait of “following the path of least resistance. If you’re going to get business in the UK, then naturally you’ll concentrate on that, but from a risk point of view, the broader the spread of your business the better. Our experience is that if you can sell successfully into the UK, then you have nothing to fear in other markets in Europe”.

Setting up in the Czech Republic has undoubtedly been pivotal to its growth in Central Europe and, overall, the experience has been excellent, Mullen adds. “We have only had good experiences. It is another piece of the jigsaw, and it has allowed us to keep higher specification jobs in Ireland. The dual presence benefits both locations and has been an important part of our growth.”

Mapping Europe’s engineering strengths

Germany remains Europe’s industrial powerhouse as a leader in automotive and machine manufacturing. The fourth largest producer of cars in the world behind the US, China and Japan, the industry is dominated by household names like Audi, BMW, Mercedes-Benz, Opel, Porsche and Volkswagen. In addition, Germany controls 14 per cent of the global market for construction and material handling equipment. Doing business with some of the country’s global giants can also open opportunities to enter the supply chain of these German headquartered multinationals elsewhere in the world.

Central Europe’s substantial Central Europe’s substantial and growing manufacturing hub now includes large portions of the Czech Republic, Hungary, Poland, Romania and Slovakia. It is fast becoming one of the leading global destinations for domestic appliance, flat-screen TV and automotive manufacturing.

With strengths in agricultural machinery, energy, cleantech, transport and aerospace, the French engineering sector is worth an estimated €40bn, employs around 350,000 people and is forecast to grow by 7.4 per cent over the 2015-2020 period. Key trends include energy transition, maintenance and renovation, smart cities and intelligent transport.

Italy is also famous for its engineering sector and is home to leading global companies in sectors such as automotives, aerospace and oil and gas. Irish companies with innovative solutions and niche products and international references can win business here.

The Nordic nations of Sweden, Norway and Finland are European leaders in metal ore mining, and Norway is a global player in the oil and gas sector. Sweden is home to an innovation-led automotive sector for cars and heavy and specialised vehicles, while Denmark is a European forerunner in renewable energy innovation, particularly in the areas of wind and biogas.

The Benelux ports of Rotterdam and Antwerp provide entry to Europe, making this a good market for logistics, fleet management and other solutions that can improve material handling and transportation efficiencies.

Grant engineers French success

Grant engineers French success

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In the wake of the Brexit vote, oil boiler specialist Grant Engineering immediately looked to develop its export markets.

The Offaly-based company employs up to 320 people. It also has operations in the UK, where it employs a further 80 staff and accounts for more than half of the UK oil boiler market.

This year it will launch in France, delegates attending Ambition France, an Enterprise Ireland event, heard.

How Enterprise Ireland supported market entry to France

It started by attending a French trade show, supported by Enterprise Ireland. “It was an opportunity to invite people from our industry to meet us,” said Niall Fay, a director of the company.

The company availed of Enterprise Ireland’s Business Accelerator initiative, which helps companies retain the services of an industry expert in country. “He spent two months contacting local potential distributors and clients, asking them to come to see us at the show and arranging the meetings.”

The result was an unexpected but welcome offer. “Two guys from a company that was of particular interest to us were looking for a career change and were keen to develop the business for us so we agreed to take them on an consultancy basis. We were lucky to find French people with 40 years industry experience between them.”

A Market Access Grant from Enterprise Ireland enabled the company to localise the product for the French market. The company then set up offices and a training facility. Grant established in France as an SAS company, the most common limited liability structure in France, opened bank accounts and registered for VAT.

Having French nationals heading up the company was a huge advantage. “One of the biggest concerns we had was finding someone within the industry who would come and join a company that is a complete unknown in France. We have gotten over that hurdle and now we are looking at sales. It is very common in France to have sales agents all over the various regions of France and that is the route to market we are going to go.”

Here too, having French nationals who know the market, and can assess candidates, has been a boon.

His French hires have extensive knowledge of the agent network and have already selected 12 they reckon can deliver. “That would have been very hard for us to do,” said Fay.

Establishing the right corporate structure is vital, said Noel Cunningham, head of FDI at Mazars in Dublin. While a liaison office can be a good way to test the waters, incurring no tax liabilities in the country, it isn’t a sustainable solution because it precludes the signing of contracts.

And if you have three or four sales people on the ground, you could find you have a taxable presence there.

Hiring locally is important. “But doing your due diligence in relation to who you hire is extremely important too,” said Cunningham.

“Apart from the cost and effort involved in hiring unsuitable candidates, it can also damage your brand. Make sure there is someone back at base who is controlling them and be clear about what type of reports they should be generating,” he said.

Work with people who have an understanding of the different culture and language, said Fabrice Folliot of F4B Development, a French national and market accelerator.

“The mistake is to come into the market from a very strong position in Ireland, even a dominant one, and think that going into to France from that position would be easy. It’s not the case,” said Folliot, citing the common tourist experience of Paris by way of analogy.

Efforts to localise essential for French market

“If you start to ask directions in English, no one will stop for you. If you start even with broken French, to show you are making an effort, people will. In business, it’s about making an effort and working with the right kind of people. That is a positive sign that shows you want to invest in, and plan to be in, the market for the long term.”

Despite France’s reputation for bureaucracy, the time it takes to set up a company has been reduced to a matter of minutes online, pointed out Hubert Levesque, managing director of Morgan McKinley France, a recruitment agency.

The “Macron effect” has seen economic growth of more than 2% and unemployment of 5% at executive level, leading to a tightening of labour market, Levesque warned. The result is salary inflation of 7% this year.  “All of this makes it harder and harder to get good high profile candidates if you have a good brand. So when you are entering with an unknown brand, it’s even harder.”

Being open to locating outside of Paris can help.

“Everybody wants to go to Paris but that is going to be more expensive and you are going to be more anonymous. There are other cities too to consider, including dynamic ones such as Lyons, Marseilles or Bordeaux, which is just two hours from Paris by train. Salaries are cheaper there because you can offer a better quality of life.”

Take advantage of the supports available to you, including Ireland’s short “distance to power”.

“When we opened our French office the Irish ambassador, government Minister Bruton and Enterprise Ireland CEO Julie Sinnamon all came,” said Tony Richardson, CEO of Venn Life Sciences.

“Our French staff were gobsmacked by the level of access an Irish company can get to a government representative, which you simply would not get in France. It made them feel really important and that they work for an Irish company which is really important to the Irish government.”

For more information on doing business in France download our Going Global guide to France.

Enterprise Ireland Instrumental in the Scaling of Combilift

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The Enterprise Ireland supports availed of by Combilift in Co. Monaghan over the past 20 years have ranged from trade mission participation to ongoing R&D support.
Materials handling equipment manufacturer Comblift has availed of Enterprise Ireland supports in the areas of research and development (R&D) and overseas markets since it was first established in 1997 in Co. Monaghan.

“We knew even from year one that we would have to be very focused on product development and investing in R&D and have found Enterprise Ireland to have been very supportive over the years in this regard,” says managing director of Combilift Martin McVicar.

“When it comes to entering new markets people in Enterprise Ireland offices will get out on the road with a company. In Germany, Kevin Buckley not only helped me to set up meetings but joined me in the car for three days going up and down the country meeting potential distributors.”

Combilift has also found the trade missions led by Enterprise Ireland to be very beneficial, as they have given the company great credibility in various markets — particularly with big customers and dealers. It has been on a number of trade missions, including to Saudi Arabia and Texas.

“Potential customers really put value on a trade mission. They demonstrate that your company must be a serious contender if it is endorsed by a government minister.”

Trade missions have assisted in driving sales for Combilift. For example during a trade mission to the United Arab Emirates two years ago it announced it was opening a new factory. Coincidentally a potential customer in the market, Agility Logistics, was at the announcement.

“Once operations manager of Agility Logistics Mohammed Jaber saw that Combilift was important to Irish government ministers he placed €400,000 worth of business with us.”

Other supports which Combilift has found beneficial include the Leadership for Growth programme as well as quarterly meetings of a mid-tier engineering group arranged by Enterprise Ireland over the past 18 months. “These meetings help to foster a scaling mindset – it is a stepping stone to creating the equivalent of a ‘Mittelstand’ of engineering companies in Ireland’.”

Design Shaping Success for Irish Exporters

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Ireland has not always considered itself a design nation. Yet our understanding of what good design means has evolved as companies recognise its commercial potential across sectors.

One milestone occurred when the Design & Crafts Council delivered Irish Design 2015 on the behalf of Enterprise Ireland and the Department of Business, Enterprise and Innovation. Since that year-long programme, the commercial impact of design in Ireland has continued to evolve. Businesses that may once have viewed design as inessential, now recognise its potential to shape business results.

For today’s exporters, an approach to design should embrace two main elements: technology and user experience. Technology describes how a product functions, and user experience how customers engage with the solution, or more importantly, how the solution engages its users. The importance of both has been clear to B2C companies for some time, with the iPhone a famous example of excellence in both. Awareness has spread to less obvious applications, like the production of agricultural machinery. Manufacturers in B2B industries now understand that design can make products look efficient, so that a user’s impression of quality is often shaped by design.

“Exporters, in particular, must treat design as strategic. Customers in different markets often have different responses to technology and user experience. It cannot be assumed that design will translate across markets.”

Exporters, in particular, must treat design as strategic. Customers in different markets often have different responses to technology and user experience. It cannot be assumed that design will translate across markets. What good design looks like in Ireland is often different to what it looks like in France. Companies must, at the very least, consider how to adapt technology and user experience for each market targeted.

Enterprise Ireland supports more and more companies to give design the focus it deserves. The success of Marco Beverage Systems, a hot water delivery systems company, has been fueled by design-driven innovation. Paul Stack, Operations Director, explains that design transcends surface styling, saying, “The main considerations for our design team are energy efficiency, beverage excellence and design excellence, incorporating user experience and aesthetics.” With just under 100 employees globally, the company’s products can be seen in significant locations, including Starbucks, Bewley’s and Costa Coffee. Stack comments, “A reputation for good design and innovation increases your brand value and drives sales all by itself.”

Irish animation Great White North

Irish animation conquers the Great White North

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Philip Callan, market executive for the animation sector based in Enterprise Ireland’s Toronto office, describes how Irish animation companies are making waves in the North American market.

With over nine million children living in Canada, and with a business climate and culture similar to Ireland, the ‘Great White North’ is a market filled with opportunities for Irish animation studios and service providers.

The Irish animation industry’s success in developing content for audiences at home and abroad has driven an increase in domestic employment. While only around 100 people were employed in the sector in the mid-2000s, it is estimated that more than 1,700 work in animation in Ireland today. The sector is worth almost €100 million to the economy, the majority of which is export generated.

The ways in which children consume entertainment internationally is evolving in ways that are suited to the strengths of Irish providers. While watching TV itself remains the most popular way for children to spend leisure time, content is increasingly consumed on newer devices, like phones and tablets, and through digital platforms, namely YouTube, Amazon and Netflix. A Viacom Insights Kids of the World study found that, of children surveyed aged 6-11, 41% owned their own tablet and 37% owned a smartphone.

Canadian broadcasters, such as CBC Kids and TVO, are required to follow government-mandated guidelines when purchasing content from international partners, including rules about representing Canadian values, such as equality, diversity and non-violence. There is a growing trend for productions that incorporate educational content that teaches children about their world and issues such as terrorism, personal safety and internet security.

Irish animation excels internationally

The widespread international recognition garnered by Irish studio Cartoon Saloon’s The Breadwinner, an Ireland/Canada co-production with Toronto-based Aircraft Pictures, is a great example of that global trend. The feature film addresses issues such as gender inequality, political oppression and warfare, and was nominated for Best Animated Feature at both the Golden Globes and Academy Awards.

Nora Keely at Guru Studio in Toronto has highlighted Canada’s co-production treaty with Ireland as a driver of projects between Irish and Canadian partners. At this year’s Kidscreen Summit in Miami, an important event for the global children’s entertainment industry, a panel of Canada’s leading figures encouraged peers to take advantage of co-production pacts and to source international partners for projects.

One challenge smaller Irish companies must overcome is scaling and getting their name known internationally, notes Ronan McCabe of Treehouse Republic and Animation Ireland. Pitching at international markets such as Kidscreen, Cartoon Forum and MIPCOM is important. Even if a pitch doesn’t succeed on the first occasion, those pitched to may remember the project later when they need to purchase content.

Pre-school shows can be easier for Irish companies to pitch to international buyers, as the older the age bracket, the greater the divergence of children’s pastimes and hobbies. Dublin and Belfast-based JAM Media secured a deal with CBC for its new pre-school show Becca’s Bunch, which combines live action, puppetry, 2D and CG animation to create a multi-textured world. Cartoon Saloon’s Puffin Rock is also aimed at the 2-5 year-old bracket and was acquired by Netflix to air in Canada, the USA, and around the world. Both shows focus on nature, wildlife, friendship and exploration, universal themes for the age range, and a great fit for the attitudes of modern children, which Viacom research describes as independent, confident and curious.

In addition to the established markets of North America and Europe, opportunities in developing markets in Asia, particularly China, are being targeted more closely by Irish studios. While significant barriers to entry remain, including a requirement for government approval of imported animation programs, they offer a growing middle-class population with significant demand for children’s content. Cartoon Saloon recently signed a multi-licence deal for Puffin Rock with the China Nebula Group (CNB) in a market with a population of 1.3 billion, of which 27% are under 20 years old.

Enterprise Ireland’s overseas office network is available to assist Small and Medium Enterprises in the animation sector with assessing in-market opportunities, identifying potential customers, and supporting international buyers to source from Ireland. For more information on doing business in Canada visit our Markets pages or download our Going Global guide.

This article was originally published in the Sunday Independent.

 

Tips for entering European markets from Combilift

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Based in Co. Monaghan, materials handling manufacturer Combilift entered European markets a year after it was established, directly targeting customers at first and then appointing distributors. Here managing director Martin McVicar shares his key pieces of advice.

Managing Director at Combilift, Martin McVicar

Dealing with different languages has been one of the challenges we have come up against in mainland Europe. Irish companies need to be aware that they require additional resources to achieve the same volume of business in a country with a different language, compared to an English speaking country. To overcome this challenge in Germany and France, Combilift appointed English-speaking distributors to speak to customers on its behalf as well as putting dedicated sales resources on the ground with local language fluency.

Once your product is innovative, we have found that the most effective strategy is to segment the market and carefully target customers directly, then appoint a distributor. When we had a number of users in different European markets, distributors then approached us. This meant they were 99% convinced about the product and more likely to sell well for us.

The unique selling point of your product may vary from market to market, so be prepared to adjust it accordingly. For example, in Combilift’s case, the fact that our forklift helps to save space has been most important for a lot of European clients, while timber companies in the US place more emphasis on the ability to handle long products safely.

When considering entering new markets I would advise against targeting the BRIC (Brazil, Russia, India and China) countries as they are so volatile. Russia used to be Combilift’s fifth largest market and this dropped to almost zero because of issues in the Ukraine and the devaluation of the ruble. Even though you will have to work harder to grow business in mainland Europe compared to English speaking markets, these countries provide consistent growth and are less volatile than the BRIC markets.

fintech

Nordic Countries Offer Opportunities as Irish Fintech Grows

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As a source of growth in both the Nordic and Irish markets, the fintech sector has become an important focus for innovation initiatives. Over the past five years, Stockholm attracted 18% of all European fintech investment, second only to London. When the organisers of Money 2020, the world’s largest financial services event, came to Europe, they chose to locate in Copenhagen.

Significant fintech growth predicted in Ireland

Ireland has become a fintech powerhouse with potential to grow significantly in the next decade. The government’s IFS2020 strategy aims to showcase fintech providers and increase market awareness of the domestic financial services offering. At the end of 2015, Enterprise Ireland counted 8,800 people specifically employed in fintech, up 40% from 2008, with over 100 client companies active in the area.

Showcasing fintech innovation

To capitalise on these growth prospects, Enterprise Ireland expanded the team that supports fintech and launched a sector-specific fintech Competitive Start Fund. The agency fosters fintech innovation through world-class acceleration programs organised with partners including the NDRC and Accenture. The Fintech Innovation Showcase held in Dublin gave ambitious Irish businesses, including Vistatec, Kyckr and Solgari, the chance to explore partnership opportunities with top players from Denmark including Nordea Bank, Danske Bank, Saxo Bank, Nets, SDC, Financial Services Union, Copenhagen Fintech, BEC and Festina Finance. Visitors learned about the capabilities of Enterprise Ireland clients in rapidly developing areas like artificial intelligence, data analytics, payments, cybersecurity, and regulation and compliance.

The opportunity for Irish companies in the Nordics is significant, an attendee explains, “We’re primarily interested in solutions that we can bring to our 10 million retail customers and 700,000 SME and corporate customers. We would like to partner with Irish start-ups that have banks as customers. Potential areas include open banking, solutions leveraging opportunities created by PSD2, like financial aggregators, and AI and machine learning. Inputs on the fintech initiatives of tech giants residing in Ireland are also of interest.”

 

Researching new markets

One challenge clients experience when expanding overseas is to understand the market’s business culture and customers. Attending events like the Fintech Showcase gives Irish companies an opportunity to learn about practical aspects of doing business in the target market. In the Nordics itself, the Copenhagen Fintech hub connects leading companies in the space in Denmark and can be a great starting point for Irish companies keen to see what Denmark can offer.

Before committing to expansion, Irish companies should be aware that the Nordic market is extremely advanced and has many indigenous global players, making competition fierce. Unless your company has a unique solution, it can be difficult to succeed. Fintech businesses in the region want a reliable, trusted, and secure supplier. An attendee describes their ideal Irish partner, “We like to collaborate with global fintech accelerators that provide a consistent pipeline, are highly verticalised within payments and adjacent services, and agnostic to geography. We are particularly interested in connecting with fintechs with IoT-knowledge, especially Internet of Payments. Value-added services connected to retail are of major interest if the technology can be exported to the Nordic context, for example start-ups that collaborate with a merchant to demonstrate a practical solution in the Irish market that can be easily exported overseas.”

In addition to attending events like the Fintech Innovation Showcase, there are a range of supports you can access to realise plans in the Nordics. Enterprise Ireland offers R&D, Innovation and Competitiveness funding to help companies identify and fill knowledge gaps. Local offices can connect you to specialist Market Advisors in the region. Taking time to learn about the realities of the Nordic market will give your plans for growth every chance of success.

Oman: the Ireland of the Middle East

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Mike Hogan Manager for the Middle East & North Africa at Enterprise Ireland, describes surprising similarities that are creating opportunities for Irish exporters to Oman.

If someone described a neutral country with a rapidly growing population of 4.5m people, which is held in good standing by neighbours, whose people have a reputation for hospitality and being great talkers, with a distinctive style of traditional music, you might think they were referring to Ireland.

There is also, however, a country in the Middle East that matches that profile – the Sultanate of Oman. Oman has become a growing market for Irish companies and a gateway to additional markets in the wider Middle East, countries where Ireland currently has a weak export footprint, located along East Africa’s Indian Ocean coast.

 

Innovation creating opportunities for Irish businesses

A recent Trade Mission, composed of 32 Irish companies and led by the then Tánaiste, Frances Fitzgerald, testified to the growing importance of Oman as a regional commercial hub. Three Enterprise Ireland-backed companies, Ding, iheed and mAdme, announced deals and partnerships with Oman-based companies during the Trade Mission.

Talal Said Al Mamari, CEO of Omantel, affirmed the importance of Irish innovation, saying, “We are always looking for innovative ways to communicate and interact with customers to better understand their experiences and expectations. Using mAdme’s platform allows us to enhance that experience by engaging customers at the right moment with exactly the right content.”

Agreements were signed by Enterprise Ireland and Atlantic Bridge with the state-backed Oman Technology Fund (OTF). A major aim of these agreements is to further aid market entry for Enterprise Ireland clients to Oman and to position Ireland as a hub for Omani companies with plans to expand their presence in the EU. The OTF aims to learn from Ireland’s experience as a world-leading technology start-up centre to support the development of its own start-up ecosystem, tailored to the needs of the Gulf region. A related initiative has seen the OTF partner with Ireland’s National Digital Research Centre (NDRC) to run a pre-seed accelerator programme in the Omani capital of Muscat.

Oman is focused on increasing diversification to drive economic growth, creating opportunities for Irish companies to assist in the process. David Shackleton, Ding’s Chief Executive, described the strengths that attracted his company to the region, “Oman is a significant and exciting growth opportunity for Ding given the flourishing economy and a proactive approach to world-leading technology. We are thrilled to partner with Asia Express Exchange across more than 30 branches.”

Irish companies already have strong positions in sectors such as ICT, healthcare, engineering and education, with almost 650 Omanis currently in higher education in Ireland. New opportunities are quickly emerging in sectors including aviation, agritech, aquaculture, food production and eLearning, in which Ireland has a strong export offering.

 

Doing business in Oman

Oman has developed a reputation as the ‘Switzerland of the Middle East’, maintaining strong political and commercial relations with both Saudi Arabia and Iran. Leveraging its network of friendly states, Oman is developing its status as a logistics hub, with the expansion and development of major ports at Salalah, Duqm and Sohar, and upgrades to international airports in Muscat and Salalah. The country is currently building out a railway network to connect its three port cities with Gulf neighbours. Boosting private sector participation in the economy is a key goal, as well as investment in indigenous food production, mining, shipbuilding and repair. Enhanced training of the Omani workforce is a priority, with 60% of the population under 30 years of age.

Perched on the Arabian Peninsula, with 1,700 km of coastline, Oman is an emerging tourist destination, with beautiful beaches and landscapes, coupled with outstanding nature and heritage tourism. Aiming to target up to 5 million foreign tourists by 2020, Oman expects to host 4 million foreign tourists in 2017 alone. There is a substantial opportunity for Ireland to assist Oman in developing its tourism capacity, in areas such as training, infrastructure, and ICT travel and tourism solutions. Clearly, whether for business or for pleasure, Oman will continue to be an attractive new market for Ireland.

 

This article was originally published in the Sunday Independent.