Both the guide and webinar slides are availabe to download; Guide / Webinar slides.
Growth of the ICT sector will be accelerated even more with news from Google and Microsoft announcing that they will build hyperscale data centres in Poland, their first in CEE region. Microsoft’s $1bn investment in the data centre in Poland will also cover creating critical skills and learning opportunities for an estimated 150,000 employees, partners and students. The skills development program will include training, e-learning programs, workshops and hackathons on cloud computing, developing with AI and machine learning technologies, big data and the Internet of Things (IoT). Since Google is planning similar scale of activity in utilizing its data centre, this creates huge opportunities for Irish companies such as Stryve, which as certified experts in Cloud Computing & Data Security has the expertise and products in cloud technologies and cybersecurity that will be essential for the digital transformation of Polish and international businesses operating in the region.
While Stryve already had a presence in Poland, the company availed of support from Enterprise Ireland, leveraging their market expertise and local network to gain introductions to enterprise customers and ICT decision makers to drive opportunities for their cloud and cybersecurity products.
“It is a known hub of research and development in the EU, with many companies engaged in information technology and business process outsourcing. Poland in recent years has had one of the fastest growing economies in Europe and has increased demand for cloud services. It is the digital heart of CEE. ”
2021 is a time of challenge and opportunity for small businesses who want to prioritize their digital transformation journeys. Fortunately, tools that weren’t seen as feasible for small businesses due to costs and resources are now becoming the norm for SMEs, integration of their workflows with cybersecurity is certainly one of them.
Stryve understands that protecting data is more important than ever with backup literally becoming recognised as the last line of defence for data protection, especially given the increase in ransomware and hack attacks. The company also recognises and communicates the importance of having a disaster recovery solution in place. Disaster recovery is often mistaken for something that is needed only in the most exceptional circumstances, when something goes wrong or misfortune strikes. In reality, a disaster recovery solution needs to be implemented during ordinary times so that when you truly need it, it can step up to the task and ensure that in the midst of a high pressure situation, losing data is one less thing you and your organisation need to worry about.
Ireland has long been known as one of the epicentres of the medtech world. Not only has our country been chosen as a base for many of the biggest medtech companies in the world, thanks to our excellent talent base and reputation for timely research and development, but we have also been responsible for producing our own ground-breaking companies, some of which have made a real impact on a global scale.
In fact, Ireland is now one of the top five global medtech hubs and home to up to 350 companies in the sector, including 14 of the world’s top 15 medtech companies. We are also the largest medtech employer per capita in Europe, with 45,000 people employed in the sector. Our medtech industry exports over €13 billion to over 100 countries every year, positioning Ireland as the second-largest exporter of medtech products in Europe.
Over 200 of those medtech companies are Irish, and one in five of those working in the sector are employed directly by Irish-owned medtech companies. The impact of these companies on the economy is significant – in 2020, Enterprise Ireland life sciences clients achieved exports of €1.9 billion.
“Our success is down to a combination of track record and forward thinking and a deep pool of experience and highly trained talent. This is boosted by a fertile ecosystem that integrates industry, research and the clinical community to promote high-quality innovation.”
Never has our strength in medtech been so needed than over the last 18 months, when the world found itself in the grips of the Covid-19 pandemic. Numerous Irish companies reacted quickly to the crisis, pivoting their offerings to create valuable solutions to aspects of the pandemic or ramping up production to supply essential devices to hospitals around the world. In fact, Ireland is currently ranked fifth in the world for Covid-19 related goods, with companies such as, Aerogen, patientMPower and PMD Solutions leading the way in medtech innovation.
Now, however, we are moving into a post-pandemic world, a world where healthcare needs have changed significantly and medtech innovations are needed more than ever before. And once again, Irish innovators are responding quickly with some great innovations.
“Irish medtech companies proved how agile and flexible they were during the pandemic,” says Deirdre. “Our focus has now turned to the post-Covid world, and how the pandemic has changed healthcare, both in terms of how we access it and in terms of how it is delivered. A lot of eyes are on Irish innovators, some of whom have already come up with exciting solutions.”
Many of these were showcased in Med in Ireland, which took place virtually on 3-4 November 2021. A biennial event, Med in Ireland is a high-profile national showcase for the entire spectrum of the Irish medtech sector, encompassing medical devices, medical sub-supply, diagnostics, digital health, healthcare providers, clinicians and research professionals. This year, 81 Irish manufacturing and healthcare solution providers took part in the event, meeting with international healthcare buyers in a series of virtual one-to-one meetings arranged by Enterprise Ireland. Ireland’s collaborative supports that drive company innovation were also a key focus of the event, while the Innovation Zone showcased some truly exciting start-ups of the future.
“The focus at this year’s Med in Ireland is very much on the themes shaping the post-pandemic healthcare world,” says Deirdre. “These include industry changes such as the move to preventative care, the role of digitalisation in the shift to healthcare outside of hospital settings, the emergence of technologies that reduce environmental impact and improve competitiveness, and the development of new distribution and inventory management models to supply chain weaknesses.”
These themes were at the forefront of the event from the very start, with a special conference featuring a keynote speech from Lorna Ross, Chief Innovation Officer at VHI Health & Wellbeing, and a panel discussion on the future of global healthcare.
Participants could then enjoy example after example of how Irish innovators are responding the needs of healthcare in the post-Covid world. “We have a number of really impressive client companies producing solutions that are required on a global scale,” says Deirdre. “These include LetsGetChecked, a virtual care company that offers over 30 different at-home tests that act as an alternative to traditional in-person medical visits; Swiftqueue, a company offering a self-service portal that allows patients to manage medical appointments across multiple clinic settings; and Vitalograph, a global leader in respiratory diagnostics and clinical trials that offers remote monitoring of lung function and disorders.”
Once again, Med in Ireland attracted leading healthcare providers from all over the world, all of whom look to Ireland for solutions, with the hope of co-developing and commercialising new medical technologies with Irish innovation at its core. Ireland has clearly played a huge role in shaping global healthcare – and that role looks to be growing even further as we move through this period of recovery.
In the not-too-distant past, companies wishing to establish a successful business relationship with firms overseas, would have relied heavily on international travel and perhaps an office or ‘boots-on-the-ground’ in the country in question.But these days, there is also another option as there are many international companies located across Ireland who are more than willing to do business with local businesses – and Gerard, Fenner, Senior Executive of Global Sourcing for Enterprise Ireland, says his team can help to bring Irish SMEs and multinational firms together.
“The combination of modern technology and accessible travel has made the world a much smaller place and opened up a myriad of global opportunities for Irish businesses,” he says.
“But travelling to or even selling out of this country isn’t the only means for companies at home to expand into the international market as there are hundreds of multinationals right here in Ireland, which are willing and able to engage with indigenous firms. Since its formation in 2012, the Enterprise Ireland Global Sourcing team has been working with colleagues in IDA Ireland to introduce Irish owned businesses to international firms to respond to their specific requirements.
“Working with companies across every sector, including pharma, medtech, ICT, engineering, financial services and energy, our team helps to develop relationships between Irish companies who are seeking to sell their product or service and multinational firms who wish to purchase same – so our particular focus is on providing sales opportunities and partnerships between Enterprise Ireland client companies and Ireland-based multinationals, predominantly IDA firms.”
According to Fenner, there are many benefits to both the seller and the buyer in these business relationships and apart from supporting industry at home, it can also lead to opportunities in export markets – and winning a contract with a multinational gives a scaling Irish company a valuable reference site for its move into export markets.
“We have found that one of the most productive means of securing relationships between Irish firms and multinationals based here is by means of events where introductions can be made, and sellers can have pre-arranged face to face meetings with potential buyers,” he says.
“In 2014 we organised the first Trade Mission in Ireland. The event was minister led and took place in various regional locations across the country over the course of a couple of days – and since then, it has taken place every year, apart from 2020, due to lockdown restrictions. It has always garnered a lot of interest and helped to develop contracts and future relationships.”
So it seems that trade missions have long been an effective means of introducing businesses to prospective clients, but since the onset of the pandemic, industry across every sector has had to pivot online and learn how to do business in a virtual world.
As current guidelines continue to prevent physical events of this nature taking place, this year, on May 12th, the first ever virtual Global Sourcing Trade Mission became the alternative.
Launched by the Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar, the event proved as popular as ever with 65 multinationals and 240 Irish companies registered with over 350 meetings. And according to Gerard Fenner, the online system was popular with both the variety of different international firms and indigenous companies looking to set up new business relationships.
“When the Enterprise Ireland companies registered on the event platform, they provided some company information about what they do and what their offer is, and this allowed suppliers to search through this information and put in a request for a meeting,” says the international trade expert. “Similarly, the supplier was also able to request a meeting with a buyer in order to pitch a product or service.
“Although these 15-minute meeting slots were different to how things normally work at a physical trade mission, it proved to be very successful with feedback from both sides indicating their positivity – and early signs show the possibility of new business relationships and further revenue to add to the €32 million in contracts which have been secured from these trade missions.”
The Global Sourcing Team lead says there was also the added positive bonus of no travel, which meant that the multinational could bring in individuals from different areas of their business to meet potential suppliers – so rather than just one representative attending the event, firms could bring in someone from finance or with technical expertise to liaise directly with companies pitching a particular service.
“Overall it was a great success and we have run smaller online events similar to this over the past year and many multinational firms have come back to us to say they were impressed with the fact that they got to meet so many different businesses,” he says.
“So, the trade mission, whether it takes place at a venue or online, is an important platform for raising awareness about the capabilities of innovative Irish SMEs and helping them to establish future business relationships. And given the interest in this year’s event, despite the difficulties surrounding the current global situation, the future looks bright.”
It’s been said many times that exports are crucial to Ireland’s recovery in the post-pandemic world – and Enterprise Ireland is committed to ensuring that Irish companies take advantage of the many opportunities around the world to increase their business and bolster our economy as a result.
A crucial event in the Enterprise Ireland year is International Markets Week, and this year, for the second year running, it was held as a virtual event over five busy days in October 2021.
“When Covid hit, we decided that the event was too important to miss, particularly in the context of a global pandemic,” explains Anne Lanigan, Regional Director, Eurozone, at Enterprise Ireland. “This is a time when it’s even more important for our clients to keep their exports going, so we decided to go onto a virtual platform, with our market advisors available for a full week.
“The market advisors are the boots on the floor, the people who can introduce client companies to potential buyers, so it’s a very practical week for people who want to do business.”
This year, the theme of the event was Global Recovery. Irish Opportunity, recognising that the global economy is experiencing significant disruption – but while this disruption brings challenges, there are also significant opportunities.
“In 2020, these figures stabilised, which was a very good result in the context of a global pandemic, but now we need to get back to 2019 levels of growth.”
Opportunities for Irish companies lie in many areas, including the green agenda and digitisation. Throughout the world, companies are investing in green and digital strategies and governments are putting stimulus packages in place to drive a recovery based on a green and digital future. This investment represents huge opportunity for innovative Irish companies.
“The current disruption in global supply chains also poses significant opportunity,” says Anne. “The drive by manufacturers in developed economies, in particular, to strengthen the reliability of their supply chains so that they are more easily accessed from a geographic and an administrative perspective, creates the opportunity for Ireland to embed themselves in these new supply chains. Ireland’s location on the edge of Europe puts us in a key position to capitalise on this move towards regionalisation of supply chains.”
It’s clear from this year’s International Markets Week that Enterprise Ireland client companies have recognised the importance of building a robust strategy to take advantage of these growth opportunities. A total of 710 Enterprise Ireland client companies registered for the event, booking a total of 1,663 meetings with market advisors from across the world.
To get an indication of how companies were faring as the world’s economy recovers from the challenges of Brexit and the Covid-19 pandemic, Enterprise Ireland conducted a survey of the participants ahead of the event. The results were positive: 56% of businesses indicated that they have seen an increase in exports in 2021 compared to 2020, with only 11% reporting a decrease. And, 91% of companies expect sales to increase again in 2022. In terms of trends, the survey revealed that 80% of businesses viewed digitalisation as vital over the next 12 months, while 63% said that advancing their sustainability agenda was a priority.
These results proved accurate throughout the event, which was officially launched by Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar, and Enterprise Ireland CEO Leo Clancy. Lydia Rogers, country manager for Enterprise Ireland in Canada, reported a real hunger in Irish companies to take advantage of the many opportunities out there. “I met many client companies at various stages of their export journey, from those accelerating their international growth and diversifying into new global markets to ambitious start-ups keen to explore the export opportunities in Canada. The week proved that Canada is a very attractive market for Irish companies in many sectors, including cleantech, consumer retail, engineering, life sciences, fintech and BPO, and a large proportion of digital technologies companies.
“In addition, Canada was also identified by many client companies as an entry point and as a lower-cost gateway into the wider North America market.”
And, as predicted, the green agenda and digitalisation opportunities were noted by Lydia as strong trends for Irish companies looking to Canada for growth. “Our team met many companies with innovative digitalisation solutions across travel tech, retail tech, ed tech, digital health, fintech, HR & talent tech, and IoT. There were also many SMEs with innovative solutions in areas including cleantech, mobility, smart energy and environment. Consumer retail was also a significant area of interest – a sector that experienced growth in 2020 despite the challenges of Covid-19. All in all, it was clear from this year’s International Markets Week that Irish companies have recognised Ireland and Canada make great business partners and are ready to reap the rewards from this vibrant and welcoming country.”
Aidan McKenna, manager of the Climate Enterprise Action Fund at Enterprise Ireland, says the fund is one of a number of actions underway to ensure that Ireland reaches its ambition of reducing emissions by 51% by the end of this decade.
“The fund builds on work Enterprise Ireland is already carrying out with companies throughout Ireland,” says Aidan. “We know the initiatives that work well and embed change in companies.”
“Reducing emissions will contribute to a more sustainable future for us all. However, along with the moral and political imperative, there is a very strong business case for Irish companies to adopt a low-carbon, sustainable agenda. One of the most important emerging market demands today is the need for companies to demonstrate their commitment to low-carbon production and sustainable business processes. It is vital that these companies are responsive to emerging market conditions.”
“Many Irish companies sell products and services to larger, international companies at home and abroad. Increasingly, these companies are requiring suppliers to have sustainability at the core of their operations. A failure to show real progress can lock you out of the market.
“Likewise, many consumers are placing environmental standards at a premium when making purchasing decisions. Issues such as using recyclable packaging, adhering to international sustainability standards and having transparent supply chains are now important factors for more and more consumers. Those that don’t change will miss out on the significant opportunities emerging from the low-carbon transition and risk being left behind.”
Aidan McKenna says another important factor is that investors and capital funds – which are critical to start-up and growing companies – increasingly factor in environmental impact into their investment decisions. “What is termed ‘green finance’ is now a reality and will shape investment decisions into the future,” explains Aidan.
Enterprise Ireland’s new Climate Enterprise Action Fund is designed to assist companies at various stages of engagement with this agenda. It comprises of three main offers:
“The first two offers are driven by the principle of ‘what gets measured gets done’,” explains Aidan. “Establishing a baseline of current resource consumption and emissions profile is essential to begin a change process. These offers will be particularly attractive to companies beginning their low-carbon journey. The third offer, Green Plus, is aimed at companies further along the journey align to international standards and frameworks.”
The Local Enterprise Offices (LEO) network has also recently launched a new scheme, called Green For Micro, designed to help smaller companies prepare for a low-carbon, sustainable future. With the help of a Green Consultant, small businesses with up to ten employees can get free advice and technical support on resource efficiency, how to better understand their carbon footprint and how to implement an environmental management system to reduce costs and lower greenhouse gas emissions.
“We are acutely aware of the pressure that companies have been under facing up to the impact of the Covid-19 pandemic and our fundamentally changed trading relationship with the UK. While companies see the value in adopting more sustainable processes in principle, finding the time and resources to dedicate to that mission can be difficult. That is why our new initiative is designed to provide companies with tangible baseline information and a route map of what a low-carbon, sustainable future looks like for them. Having the low-carbon concept broken down into achievable actions makes the journey all that more realistic and the business wins all that more attainable.”
“The global trading environment is tough and competitive,” says Aidan. “To succeed, companies need to think not just about the next order, but about how their sector will develop in the next five to ten years. Environmental sustainability and responsible production will be key drivers of business success into the future. Now is the time for all Irish businesses to prepare for that future.”
Renewable energy is the single most critical factor for Europe when it comes to achieving its Green Deal zero carbon target by 2050. While climate change has provided huge impetus for the sector, the war in Ukraine has underscored the
importance of independent, safe, reliable, affordable sources of energy.
Offshore wind is a key and growing element in the drive for carbon neutrality and energy security. Wind already meets 15% of Europe’s electricity demand, according to Wind Europe, and that figure should top 50% by 2050. It’s already as high as 31% in Ireland and 44% in Denmark.
Most existing wind capacity is onshore, but governments and industry across Europe are now investing billions to develop and expedite scores of offshore wind projects, which are seen as key to large-scale renewable electricity generation in future.
Furthermore, the European Union is pushing for smart, green innovation and development across Europe through the €806.9 billion Recovery and Resiliency Facility (RRF). Distributed through national plans, this funding aims to help Europe recover from the pandemic and future-proof its economy and society, with sustainable, clean energy a key goal.
The huge surge in planning and construction in the industry is causing massive demand, serious supply chain bottlenecks and skills shortages. Furthermore, port infrastructure across the region needs upgrading to facilitate the transport, storage and preassembly of the huge components needed to build offshore wind farms.
While challenging for the sector, these issues mean there are significant opportunities for Irish firms with digital, engineering and marine expertise.
“The large developers, Tier 1 contractors and OEMs in offshore wind are looking for innovation, sustainable solutions, flexibility and a strong safety culture,” says Liam Curran, Senior Technologist with Enterprise Ireland. “Irish companies can find opportunities across the windfarm lifecycle, from initial feasibility studies and planning applications right through to construction/installation and subsequent operation and maintenance over decades.
Curran says companies should seek to offer services or solutions that maximise efficiency and safety or cut costs or risk. Being open to collaboration is critical, as these complex projects involve multiple stakeholders.
Enterprise Ireland sees particular opportunity for Ireland and Irish firms to lead when it comes to digital and data services. “The further projects go offshore, the more vital high-tech solutions become,” he explains.
“We want everyone involved in offshore wind in Europe to know the Irish are the people to go to when IoT, connectivity, communication systems or cyber security is needed,” he said, “and we want Irish firms with expertise in these areas to consider developing an offering for offshore wind if they haven’t already.”
In particular, the industry has significant need for support in the following areas:
He adds that offshore wind also offers clear opportunities for:
Many Irish companies already service the offshore wind market. These include Gavin & Doherty Geosolutions, for example, a specialist offshore and marine engineering firm operating in 15 international markets, high tech surveying companies such as XOCEAN and Green Rebel Marine, and marine services specialists such as Alpha Marine and Fastnet Marine.
Digital and connectivity specialists meeting the needs of offshore wind clients in Ireland and overseas include Vilicom, Druid Software, TechWorks Marine, BrightWind Analysis, Exceedence and EMR Integrated Solutions.
Other firms such as Combilift and Qubus Systems are also catering to the offshore wind sector in Europe.
Companies keen to join the offshore wind supply chain should first work to get up (and stay up) to speed on market intelligence. Attend industry events to build both knowledge and networks, and consider joining clusters such as the Gael Offshore Network. This is a cluster of more than 85 Irish companies with relevant digital, engineering and other expertise.
Expert advisors in Enterprise Ireland’s network of offices across Europe, together with its Market Research Centre in Dublin can support you as you examine the offshore wind opportunity. This can include help with market research, market visits, making local introductions and tendering.
Having been slow to start, France is strongly committed to offshore wind and offers a welcoming market for Irish specialist firms.
Within eight years, Germany has become a global leader in offshore wind and welcomes collaboration and partnership with innovative suppliers.
Italy has been relatively slow to develop offshore wind, but interest is growing rapidly in the market, with urgent geopolitical and climate reasons to drive action.
Estimated article reading time: 12 minutes
Across Europe, EU member states are seeking to digitalise their healthcare systems as rapidly as possible over the next three years. This is not only spurred by the pandemic, but also by an extraordinary increase in funding under the €750 billion NextGenerationEU plan, which seeks to build a more resilient Europe.
Two key goals of this plan are to make Europe digital and to make it healthy, with the development of digital healthcare an engine driving both of those. France, for example, is dedicating €2 billion to digital health alone in its national recovery and resilience plan.
Within the digital goal, the EU wants to see artificial intelligence (AI) being used to improve healthcare and for public services to become digital where possible, taking advantage of 5G and EU-wide ultra-fast broadband.
The EU is also keen for member states to modernise their health systems with better access to new technology and medical supplies, and to invest more in research and innovation to develop vaccines and treatments.
With significant tranches of funding dedicated to both of these goals in individual member state recovery and resilience plans, this clearly presents a huge opportunity for Irish companies who produce or develop digital health products and services. That’s true whether they want to start exporting or diversify their export markets.
Given the need to pursue a market diversification strategy post-Brexit, she adds that it makes sense for companies that want to export or to expand their export activities to look to EU markets and try to take advantage of this huge increase in funded projects.
Telemedicine
Everywhere in Europe, the pandemic has seen a huge surge in telemedicine, remote care and remote monitoring, as both citizens seek to protect themselves and healthcare providers look to maximise resources. This sector is expanding rapidly, meaning that opportunities abound for businesses keen to export.
Optimising data and processes
Across the region, governments are also seeking to optimise processes in healthcare, making the most of software and apps, and aiming for a high level of interoperability and better co-ordination between all the different strands of healthcare systems.
They want to make better use of data, with most countries seeking to introduce or improve digital health profiles, which offer a single source of truth to each citizen and all their healthcare providers.
Other priorities
In most markets, both preventative and personalised medicine, including the use of AI in medicine, are also beginning to boom. As ever, any innovation in medical devices and device components is also going to be of interest to European customers, especially in Germany and Italy.
Innovation in medical imaging is also highly sought after, particularly in France, where it is a core focus. Medical areas in particular focus include: cardiac health; diabetes; oncology; and respiratory diseases.
In some less mature markets, such as Italy, there are also opportunities for companies that can provide innovative solutions around connectivity for healthcare locations and digital skills across the health and medical workforce.
National healthcare systems are never straightforward, and the level and nature of the complexity involved varies from market to market. Most have both public and private healthcare systems running in parallel, although the public/private split varies significantly.
In some countries, such as Germany and Spain, private hospital chains and large insurance companies that offer branded clinics and digital products are significant actors.
While the increase in EU funding is primarily focused on public healthcare, it is worth bearing in mind that a private healthcare company can often make faster decisions and be less hamstrung by legacy and regulatory processes.
Where healthcare is concerned, localisation is important in every market, even in those with a high degree of fluency in English.
Those seeking to sell into the public healthcare system in any EU market typically need to work with a local systems integrator, who is used to navigating the complexity of the national system and national tender processes.
“Whether your company is focusing on securing public or private customers, you will need a local partner who understands the healthcare system and you may need a local office or representative,” says Lanigan.
While any Irish company operating in the digital healthcare space needs to offer a standout product or service to gain traction in export markets, the good news is that Irish firms are typically keeping pace with local competitors and can garner market share fast when their offering has the edge over those developed in-market.
Digitalisation of the healthcare system is a huge priority in Belgium, but language and regulatory complexity pose a challenge to exporters.
Determined to lead the region in digital healthcare, France has introduced numerous eHealth initiatives, backed by substantial funding.
With an approvals fast track in place, Germany is committed to digital health but the competitive local scene is hard to crack.
While it has lagged on the digital front, Italy is committed to modernising its healthcare system and is open to external innovation.
The Netherlands has not yet submitted a national recovery and resilience plan – the only EU member state not to do so.
With one of the most advanced healthcare systems in the world, the Netherlands has a strong focus on digital health innovation.
While Spain is a fragmented market due to strong regional government, opportunity abounds as digital healthcare is less advanced than elsewhere.
To help you prepare, take a look at our suggestions of questions to ask your Market Advisor.
Our Market Advisors are always available to support you and provide business expertise and on-the-ground knowledge.
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This incentive reduces the effective cost of equipment for UK manufacturers, thus making plant and machinery investments more attractive.
For example, under current rules, if a company invests £100,000 in a piece of equipment they can write off the cost of that equipment against their tax bill. i.e. Since 19% of £100,000 is £19,000, the effective cost of their equipment is £81,000.
With the new super deduction, you can write off 130% of your investment in “plant and machinery” against your tax bill. i.e. 130% of £100,000 is £130,000, which at the 19% corporate tax rate allows you to write off £24,700. This means the effective cost of your equipment is now £75,300. Therefore, companies are incentivised to move forward or make additional capital investments.
This is necessary as investment has dropped significantly due to the pandemic in the UK which was on top of historically low business investment relative to the UK’s peers. Chancellor Rishi Sunak reiterated this need for increased investment “With the lowest corporation tax in the G7, we need to do even more to encourage businesses to invest – for decades we have lagged behind our international peers”.
It is expected that these incentives should act as a catalyst to the return of capital investment in the UK post pandemic with Stephen Phipson of MAKE UK (The UK manufacturer’s association) stating that the super deduction should “turbocharge investment”.
For many manufacturers in the UK investment cycles have stalled or been delayed due to Covid-19 and Brexit and may now be looking at capital investments for the first time in several years. According to a MAKE UK survey following the budget announcement, almost a quarter (22.6%) of manufacturers stated plans to increase investments in response to the super deduction. Furthermore, 28.1% of those surveyed said they will bring forward planned investments in response.
This indicates the impact that these incentives will have on investments in 2021 and beyond, potentially making your customer base more receptive to your offering.
This is one of the first major supports brought in for manufacturers since the UK industrial strategy was axed earlier this year and it is expected that there is further supports to come for UK manufacturers. There has been calls for an overarching plan for business to replace the industrial strategy, bringing together policies around sustainability, skills and trade, but it is uncertain whether such a plan will be put in place.
Nevertheless, the introduction of incentives like the super deduction are sure to be welcomed by manufacturers in the UK and Irish companies should ensure they are up to date with any supports their customers may be receiving for their product/service. To learn more about Tax super deduction visit www.gov.uk.
One of the keynote speakers at this year’s IMW event was Kevin Brennan, the co-founder and managing director at Modubuild, a company that has enjoyed phenomenal growth thanks to large-scale projects throughout Northern Europe. Understandably, the company has faced project delays and postponements thanks to the effects of the Covid-19 pandemic but is still expecting strong growth this year.
“The way we look at it is that Covid has been a problem but it’s just one of the many problems that you encounter as an international business on a day-to-day or year-to-year basis,” says Kevin. “Our main message would be to remain positive, communicate with your people and continue to service your clients. We don’t see Covid as an excuse not to deliver. It may be more difficult but the world continues on.”
Modubuild was set up initially as a small company by Kevin and his business partner John Comerford to take advantage of an opportunity around modular construction, specifically in the area of specialist fire and explosion protection. Clients included Dublin Airport and Limerick Tunnel, as well as some pharmaceutical companies like Eli Lilly, Pfizer & Amgen. The company quickly became specialists in this area and were well poised to deliver solutions for the burgeoning data centre industry that experienced strong growth in the last decade.
Our first data centre job in Ireland was around 2012, and in 2015, we won our first big international contract, an €8 million contract for a data centre in the Netherlands for the same client. At the time, it was one of the biggest data centre projects in Europe. From then on, the company has skyrocketed in growth, averaging 60% year on year since then. Current year revenue will be somewhere north of €34 million, so all going well, we’d be expecting to go past the €50 million mark next year.”
Throughout their growth, Modubuild has been supported by Enterprise Ireland, both in terms of grants and advice as they expanded into new countries. “Enterprise Ireland helped us out a lot since we initially branched out into the Netherlands, leading us through issues like tax compliance and putting us in contact with local suppliers, opportunities etc. We also received two rounds of funding to help recruit people. We’ve found them really beneficial in terms of PR; our first office outside Ireland was in Amsterdam, and Enterprise Ireland arranged for Kevin Kelly, Ireland’s ambassador to the Netherlands, to open the office, which attracted a significant amount of PR. The fact that you have an entity like Enterprise Ireland promoting us as an international company alongside some other very successful companies can only be beneficial in raising our profile.”
Today, the company is headquartered in Kilkenny City, with a manufacturing plant in Castlecomer and offices in Amsterdam, Brussels, Manchester, Stockholm and Helsinki. “Our business is mostly in North Europe, following our clients as they require our services. Lots of data centre activity is located in Northern Europe – our clients tend to roll out different projects across Europe and ask us to come on the journey with them. We’re in the process of setting up in Spain in the next year because data centre activity is increasing there and we are also looking at opportunities in other countries.”
The plant in Castlecomer is another side to the business. “In Castlecomer, we design and manufacture high-tech modular buildings and can then ship them throughout the world. For example, we’ve just delivered a large turn-key design and build vaccine laboratory for a Global BioPharma customer. We designed, built and tested the entire facility in our factory, while the client was getting planning and preparing the site. We then shipped it to site in large modules and re-assembled the building on site in 10 days, this means our client can have a lifesaving vaccine ready for market around one year earlier than it would normally take.”
Modubuild was in a strong position coming into 2020, which helped the company navigate the two major challenges of 2020 – Brexit and Covid. Brexit, explains Kevin, was something they had prepared for well in advance. “One of the things we did when Brexit first came on the scene was to set up a separate company that operated within the UK. We also took the foot off the pedal somewhat in the UK as it’s a very competitive market and instead focused our attentions elsewhere in Europe – and it’s been a very successful strategy for us.”
Covid, on the other hand, was a different story. “Covid was something that nobody saw coming. For us, we had seen huge growth coming into the crisis, and we were extremely busy with almost full order books. The biggest impact probably was the temporary closure of some projects, particularly in Ireland because of lockdowns, and that hit our Q2 turnover probably to the tune of 25%. But overall, we’re still projecting strong growth this year, perhaps not at the same level as before Covid, but possibly somewhere north of 30%.
“We’re lucky that the sectors we work in are all seen as essential – for instance, many of our clients are looking to develop vaccines for Covid and need rapid delivery of vaccine laboratories, which we can build in Castlecomer. Then the data centre industry is continuing its growth at pace, if anything, Covid has meant there is an even greater need for data centres due to video conferencing, remote working etc.”
Like most other companies, remote working and staying in contact with employees during lockdowns have been challenging. “A lot of our people are mobile and working in different locations so we were well used to communicating through video chat etc, but probably our biggest challenge was missing the interaction of working and collaborating in an office environment. We’ve tried to keep people connected by having regular Town Hall meetings online and doing various other activities online to keep people involved, virtual coffee meetings etc. There was huge uncertainty back in March/April, we noticed many people and businesses around us were panicking, so one of the first things we did as a company was to send a clear out a clear message to our people that we were in a strong position, peoples jobs were secure and we weren’t going to put people on reduced hours, furlough, forced holidays etc. In fact, we stated that we were going to keep recruiting – and that’s what we’ve done, we have continued to grow team significantly to ensure we were ready to take on new and larger projects.”
In addition, having boots on the ground in Europe has proved beneficial. “We had a couple of hundred people located on projects throughout Europe, and most of them made the decision to stay in those countries during the pandemic rather than travelling back to Ireland every week or two weeks as they would have done pre-Covid. This meant that all our projects stayed operational throughout the crisis, in fact, we actually started a couple of new projects in Europe right in the middle of the pandemic.”
