Construction

EU initiatives helps Europe’s construction sector build a sustainable future

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Summary

  • NextGenerationEUrepresents an opportunity for Irish companies to break into new markets or scale their presence in existing markets.
  • EU member states are united in the push for a carbon-neutral Europe by 2050, which requires huge investment in sustainable construction and retrofitting.
  • Click or scroll down for more information about the sustainable construction market in:
France Germany Italy

Sustainability is the future of construction. Since the 2015 Paris Agreement (or COP 21), countries around the world have been striving to change how they operate with a view to keeping global warming at 2C or lower. In many countries, the decarbonisation of construction comes second only to renewable energy as the sector where most impact can be had.

Concrete and cement alone account for as much as 8 percent of global CO2 emissions, while the construction industry is also a heavy consumer of energy and other resources and generates huge levels of waste. Furthermore, existing building stocks across the region emit carbon and need to be retrofitted to operate sustainably.

The push for a carbon neutral 2050

Through the €806.9 billion Recovery and Resiliency Facility (RRF), which aims to help Europe recover from the pandemic and future-proof its economy and society, the European Union also hopes to achieve its Green Deal target of climate neutrality by 2050.

“We are all on the same page in Europe,” says Alix Derigny, Market Advisor Construction & Sustainable Build at Enterprise Ireland in France, “because every state has set greenhouse gas emission-reduction targets. The EU and national governments are putting in place grants to raise ambitions, and consumers are expecting day-to-day life to be greener.”

“Similarly, the real estate and retail sectors are putting pressure on the construction sector to accelerate the ecological transition. This issue is driving all businesses in the sector, from sub-contractors to suppliers and materials manufacturers.”

In fact, at least 37% of spending in the national plans funded by the RRF must relate to climate goals. Much of that, in turn, is going to construction and infrastructure projects.

In the effort to build a truly climate-friendly, circular economy, where waste and carbon emissions are minimised or eliminated, building and renovation methods are crucial. Prefabrication, for example, can enhance efficiency and build speed, while minimising waste.

Across the board in Europe, governments are making use of this funding to enable the Green transition. From a construction perspective, this includes work around:

  • energy retrofitting of public and private buildings, including homes and business premises
  • enabling the circular economy, through the modernisation of recycling centres and other projects
  • building green infrastructure, such as rail and other transport infrastructure.

Where the opportunity lies for Irish construction firms

As the whole industry evolves to embrace innovation, be more flexible, efficient and sustainable, many opportunities are opening up for contractors, engineering and advisory companies. It’s worth bearing in mind that large contractors are now seeking to reduce emissions across their entire value chain and will seek vendors who can meet those standards.

Irish firms are already delivering demanding construction and related projects in more than 100 countries. Ireland has particular strength in sought-after capabilities such as:

  • designing and delivering advanced infrastructure across the data, pharma and energy sectors
  • developing and implementing innovative digital and data-driven solutions, such as digital twins
  • improving resource efficiencies

There are a number of key areas in which the construction sector across Europe, and indeed globally, will welcome the solutions Irish firms can provide. “Markets like France and Germany are mature markets with an engineering culture,” says Derigny.

“You need to be innovative or have something to reduce the customer’s carbon footprint, if you want to compete with domestic suppliers,” she adds. “If you can bring those solutions, you’ll find customers with a huge appetite for them.”

Specific areas of interest to European construction customers include:

  • energy efficiency
  • sustainable heating, ventilation and air conditioning (HVAC) systems
  • LEED certification
  • smart building solutions, including sensors, security and maintenance
  • 5G Technology (for IoT solutions)
  • technologies and material to reduce CO2 emissions
  • solar panels
  • AI-powered solutions
  • any other product or service that can help lead to Leadership in Energy and Environmental Design (LEED) certified buildings

Partners and planning vital to success

Typically, says Derigny, it makes sense for Irish firms to find partners in export markets, because it increases speed to market and reduces risk, but Enterprise Ireland can advise on a case-by-case basis.

Across Europe, as for any market at present, this sector is grappling with commodity price inflation, supply chain disruption and labour shortages. None of the markets below varies from that perspective, so it’s best to be prepared and consider how you can surmount these challenges so your market entry is not derailed by external factors.

Understand the 5G market opportunity for Irish firms

The strong Irish cluster of cybersecurity firms, for example, has clear opportunities across key European markets as do Irish firms specialising in Open RAN, a technology that facilitates the deployment of 5G. Other thriving areas where Enterprise Ireland has identified significant opportunities for Irish firms include IoT and smart cities.

Among the Irish firms specialising in 5G and connectivity products and services, and thriving in EU markets, are Open RAN radio infrastructure specialists Benetel or Aspire and core cellular network software company Druid Software.

Expert advisors in Enterprise Ireland’s network of offices across Europe, together with its Market Research Centre in Dublin, can support your business as it investigates market opportunities, including by making local introductions and helping you to build your network.

If you are not sure where to start your export journey, get in touch.

Market snapshots

France

The renovation sector is thriving in France as established building and energy firms seek innovative solutions to incorporate into their offerings.

France aims to reduce energy consumption in the building sector by 28% by 2030 and to achieve a carbon-neutral building stock by 2050.

The building sector is a priority target for France’s Energy Transition Law, which came into force in 2015, and legislation also mandates high energy performance from any renovation works. Furthermore, any new building has had to be energy-efficient since 2012, with construction of ‘energy-plus’ homes expected to become the norm.

Major players such as GA Smart Building, Bouygues and Vinci have a strong culture of innovation. They are eager to scout and integrate innovative solutions into their products, so they can offer smart building solutions to their customers.

 Energy providers such as EDF, Engie and Total Direct Energie are always looking for innovative start-ups to develop partnerships.

Overall, the booming housing renovation market is worth €40 billion in France or about a third of the overall construction sector.

France Relance, the national recovery and resilience plan provides substantial additional public funding for energy-saving works, with €5.8 billion allocated to energy retrofitting works. A further €7.0 billion is earmarked for green infrastructure and mobility, which will require significant building work.

President Macron has set the goal of renovating at least 700,000 homes a year for five years, relying on his flagship MaPrimeRénov’ grant. This covers works related to insulation, ventilation, heating and heating control systems.

The construction activity is now in total evolution towards energy renovation and the construction of more efficient buildings – BIM, sensors, maintenance, energy efficiency, safety & security.

Time and patience are needed to manage lengthy sales cycles and due diligence processes. If it is approached correctly, however, France can be a significant and lucrative market for innovative, leading-edge Irish companies.

Irish companies thriving in France include:

  • Kingspan, which anticipates turning over half a billion euro in France in 2022
  • Ecocem France, a concrete products joint venture with a French firm
  • Tricel, a wastewater treatment manufacturer
  • LED Group, which makes lighting fittings
  • Robeau, which makes water-saving systems

Key players in the market include:

  • material manufacturers
  • general contractors
  • wholesalers and DIY stores
  • Specialised distributors

Top tip

Being part of a local, on-the-ground network is important in the French market. Recruiting an in-market business developer or partnering with a local company will improve chances of success.

Contact the Enterprise Ireland France team

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Germany

Huge drive for energy-efficient building and renovation represents a significant opportunity for Irish firms prepared to commit to the German market.

Germany is aiming to have a completely climate-neutral building stock by 2050, but as it stands, buildings there still account for a significant proportion of its total energy use and greenhouse gas emissions.

In total, there are nearly 22 million buildings in Germany, and three quarters of them were built before the first energy efficiency standards were introduced in 1978. That means despite Germany’s long-standing commitment to energy efficiency, there is still ample opportunity for companies who can support with retrofitting and refurbishment, or the construction of new low- or zero-carbon developments

Of Germany’s total €28 billion national Recovery and Resilience Plan or Deutscher Aufbau- und Resilienzplan (DARP), 42% has been allocated to support climate objectives

It includes €2.5 billion for a large-scale renovation programme to radically improve the energy efficiency in residential buildings, while the government is making a further €6 billion available for the Federal Funding for Efficient Buildings Program.

Irish firms will find particular opportunity in the German market around:

  • energy management
  • HVAC systems
  • insulation
  • timber construction.

Customers for Irish firms would most typically be large companies in the residential construction sector, such as Vonovia SE, Strabag AG, Ed. Zublin AG and Bauer AG.

While the main opportunities and funding lie in the residential construction sector, this is a competitive market with numerous well-established domestic competitors. At a minimum, you’ll find a strong local partner to help you with language skills and making the most of their existing relationships on the ground.

Irish companies have not had notable success in residential construction, but have gained far more ground in the specialist high-tech construction market, where their expertise in building data centres and pharmaceutical facility is valued.

 

German business culture is usually risk-averse and new entrants need to show a strong commitment to the market.

Top tip

Be as prepared and committed as you can. Germany isn’t a market for opportunistic sales. If possible, a physical presence there and regular visits to the market will mean you can take advantage of the long-lasting opportunity the German market offers.

Contact the Enterprise Ireland Germany team

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Italy

Opportunities abound for construction firms in Italy, where the government is committed to upgrading its building stock and overhauling its infrastructure.

As Italy seeks to become carbon neutral by 2050, it is undertaking a huge public-private regeneration effort, largely driven by EU funding. With 30% of buildings in the country having historic or cultural value, there is extensive funding for sustainable restorations.

Urban regeneration projects alone are valued at €3.4bn, with €300m already spent in 2022.

Milan is a front runner, with 320 green buildings already certified and 4 ongoing major large-scale urban regeneration projects (Porta Nuova, Citylife, Uptown and MIND, the zero-carbon Milan Innovation District), where sustainability is a key driver of the projects.

 

Legislative changes and ongoing reform of the public administration will also help the country achieve its sustainability goals, especially as they should enable the construction industry to operate more efficiently.

Within Italy’s €191 billion National Resilience and Recovery Plan or Piano Nazionale di Represa e Resilienza (PNRR), which is funded by the EU, €59.46 billion is devoted to the circular economy and introducing green initiatives. The government is adding a further €30 billion in grants.

Together, this spend will include:

  • €5bn on social housing, including the refurbishment of a fifth of public apartment buildings
  • €412m to refurbish judicial buildings
  • €800m to make 40,000 schools more energy efficient.

Furthermore, the PNRR also includes significant commitments around the refurbishment of infrastructure with:

  • €87bn going to construction (of which 30% will go to Lombardy, Sicily and Campania)
  • €31bn allocated to upgrade railways and ports

To encourage 50,000 or more building owners to refurbish and retrofit existing properties, the Italian government has also introduced the EcoBonus scheme. This is a €14 billion fiscal incentive aimed at improving the energy rating and efficiency of existing buildings. The scheme covers the full cost of green renovations and also incentivises homeowners by offering an extra 10% (through a tax deduction of up to €100,000 per home).

Take your time and be prepared. Invest in validating the market opportunity and building the right market entry strategy. Italian customers value strong relationships so it is worth spending time investing in building your network.

Typical customers include private construction consortiums, local contractor companies, local councils and suppliers.

Competition from local companies can be a challenge, especially if you are a first time exporter in the market. Irish firms typically find it useful to have a strong local partner in this competitive market, as this can help shorten the sales cycle, deal with the language barrier and navigate local bureaucracy.

Top tip

Direct relationships matter. Invest time in coming to the market and meeting your counterparts in person.

Contact the Enterprise Ireland Italy team

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The Future of Mobility

EU helps to supercharge mobility, offering opportunity to Irish businesses

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Summary

  • NextGenerationEU represents an opportunity for Irish companies to break into new markets or scale their presence in existing markets
  • EU member states are seeking to digitalise their transport infrastructure and introduce or improve smart, sustainable mobility options as rapidly as possible, with hundreds of projects set to kick off over the next couple of years
  • The Enterprise Ireland Eurozone team can help you find the right mobility projects to target
  • Click or scroll down for more information about the mobility market in:
Belgium France Germany Italy Netherlands Spain

Mobility is one of the fastest-growing sectors in Europe. That’s no surprise, given the urgency of the fight to reduce emissions and combat climate change, the surge in digital technologies enabling smart cities and towns, and the reasonable desire of urban dwellers in particular to get around quickly and easily.

Mobility covers public transport such as buses, trams and trains, along with active modes such as cycling, shared mobility solutions such as scooters and bicycles, and electric vehicles, along with data-driven solutions for traffic management and other challenges.

The multi-billion euro flood of NextGenerationEU funding, distributed through national recovery and resilience plans, is amping up the speed of growth in this already soaring sector. The influx of funding amplifies what is already a significant opportunity for Irish companies to enter new markets or scale their operations in other markets.

Mobility cuts across three of the six pillars of the EU’s Recovery and Resilience Facility: the green transition, digital transformation and smart, sustainable and inclusive growth.

Irish firms thriving in Europe

A significant cluster of Irish companies is already winning business across the mobility space in Europe.

Taoglas, for example, provides antennae for micromobility products to significant players such as fifteen (previously Zoov), while CitySwift is pushing to digitialise the management of bus routes and Civic offers cities the ability to better manage traffic through sensors and data.

Zeus, an Irish company that operates three-wheeled electric scooter hire services, is already offering services in more than 20 German cities, as well as in Croatia, Italy, Norway, Sweden and Malaysia. Anadue, with which Zeus partners, is another Irish firm active in the space – it offers analytics for micromobility.

“Clusters like this offer a competitive advantage,” explains Jens Altmann, Enterprise Ireland’s sector lead for future mobility, “because the Irish are very good at collaborating and forming a joint offer, which can be a stronger proposition. And of course you can leverage networks through the other companies in the cluster.”

He adds that, regardless of the market, any potential entrant needs to consider how they will add value to the local mobility ecosystem.

“People will choose the local offer if it is the same. You need a strong selling point, which you get through collaborating or having a stronger technology than others.

“Irish companies tend to be deeper in the value chain. They’re good at niche enabling technologies and world leaders in some fields. Therefore, it’s crucial to build up networks and to have local partners. That’s key for most mobility companies, especially for new market entrants.”

Understand the opportunity

Significant current opportunities in most if not all European markets include charging infrastructure and other ways of optimising electric, connected or automated vehicles. Mobility as a service, where a user can plan, book and pay for a trip across multiple modes of transport in one app, is also of widespread interest.

Shared mobility remains an opportunity, but especially in smaller Tier 2 markets as capitals and other large cities are typically saturated. It’s worth checking dive.fluctuo.com for an overview.

Data management, data privacy, cybersecurity and systems integrity are also key opportunities, as true smart mobility hinges on both public and private sectors aligning on how to protect the oceans of data produced and used in this context.

Take time to access the market context

Across the EU, developments in mobility involves an interplay between the public and private sectors, and it’s vital to understand the balance before entering any new market.

“All these kind of transport systems or mobility systems need to be integrated, centralised and consolidated,” explains Altmann.

“That is all steered by the governments and the cities that regulate the market. Therefore, they’re the decision makers in the end. Either you tender to sell to the city or you get them to allow you to position your scooters for the consumer business.”

As in any sector, it’s important to gather market intelligence, appreciate the need for localisation and work to build local networks if you want to break into the mobility space in any EU market.

Expert advisors in Enterprise Ireland’s network of office across Europe, together with its Market Research Centre in Dublin can support your business as it investigates market opportunities, including by making local introductions and helping you to build your network.

If you are not sure where to start your export journey, get in touch.

Market snapshots

Belgium

Belgium remains car-dependent, with more than 30% of 1-2km journeys still made by car, but the entire mobility ecosystem is changing.  

Powered by a steady influx of investment capital, the private sector has led the way in Belgium, driven by:

  • Rapid technological innovation (such as electric powertrains and automated driving systems)
  • New business models, including transport network companies
  • Increased use of drones, electric scooters and bikes

The public sector has also ramped up activity, with the federal government raising taxes to fund charging stations, for example, while Flanders plans to build 30,000 of them.

Congestion charges are also coming. The SmartMove initiative aims to reduce traffic emissions by 5% and time lost to traffic jams by 32% in the Brussels-Capital Region (one of the top 10 most congested cities in Europe), by levying a per-kilometre charge on all passenger and delivery vehicles.

  • Federal and regional government departments, including FPS Mobility & Transport and the Departement MobiliteitOpenbare Werken & De Lijn
  • Public sector mobility providers such as SNCB
  • Mobility-focused organisations like ITS.be, Brussels Mobility and Mobilité Wallonie
  • International mobility networks such as POLIS and AVERE

With €1.3 billion in EU funding allocated to transforming mobility in Belgium, rail is the main national priority, with funding of €675m. Over €400m is going to finance cycling infrastructure across the country, with a strong emphasis on enabling commuters to travel by electric bikes).

The greening of transport (€210m) is also a key focus, with Flanders and Brussels having requested €93m and €55m in European funds to green their bus networks.

In particular, Irish companies seeking to break into the Belgian market will find opportunities in cities such as Ghent, Liege and Leuven, and in areas such as:

  • Digitalisation of mobility
  • Road safety

Electric transport, including vehicles, bikes and scooters

Broadly speaking, Belgium ranks highly in innovation and is a good “test market” for companies looking to grow into the broader European markets by establishing a local presence or through trade.

With high levels of English fluency, language is not necessarily a barrier to entry here and Belgium is a very open economy, due to its compact size. There are also challenges, as Belgium has a complicated government structure – highly relevant when it comes to mobility – with one federal government, three regional governments, 10 provinces and 581 municipalities!

Top tip

Do your research before entering the market and make most of the knowledge and networks of local contacts and associations.

Contact the Enterprise Ireland Belgium team

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France

Having tended to lag in digitalisation, France is investing heavily in mobility and plans to be a leader in the mobility of tomorrow.

France is a highly industrial and engineering-focused country. Its digitalisation adoption is a step behind, but it expects to close the gap rapidly.

Under the France Relance plan, France plans to install seven million vehicle charging points for by 2030. It also wants to see 5.3 million EVs on the road by 2028, with €1.3 billion earmarked to incentivise people to buy them.

Other key priorities include:

  • Connected mobility
  • Modernising rail networks for both freight and passengers (train, metro, tramway and bus)
  • Rail network security
  • Cycling infrastructure
  • 5G and quantum technologies to develop future mobility, such as connected and autonomous vehicles.

Furthermore, France is looking to mobility 3.0 and the need for sensor technology, wireless communications, computing, real-time and localisation technologies, electronic payment, traffic management, flow and security, and fleet and freight management.

  • Local, regional and national government
  • Enedis for charging infrastructure
  • Public sector mobility service providers such as SNCF-Thalys-RATP
  • Private sector mobility providers such as Blablacar and Keolis

While smart transport and shared mobility are strong in Paris and the other main cities in France, there is a significant opportunity around micromobility in smaller cities, such as Toulouse or Montpellier. It’s worth noting, however, that local authorities won’t be rushed in making decisions.

Overall, the French government is investing €570 million in an acceleration strategy to digitalise and decarbonise mobility, and the call for projects is open.

ADEME, the government’s ecological transition agency, is focusing on:

  • the development of less consuming and less polluting vehicles
  • sustainable organisation of transport systems
  • behaviour change, including the use of mobility services, active modes, public transport and clean vehicles

Work to renew and modernise the French road network is being accelerated, which in turn opens up significant opportunities around :

  • Digital road monitoring and predictive maintenance of road infrastructure
  • Intelligent refuelling management systems for electric mobility

Companies offering products and services designed to optimise the power supply in order to support charging systems, rail services and so on will also find significant opportunities in France.

The mobility scene is becoming busy and French companies strongly prefer French partners, but there are opportunities for innovative products and services. Flexibility in product development and collaboration is a real advantage for Irish firms.

The French market can be a long sales cycle and requires trust and reliability. You need to get to know who you are dealing with before real business can be done.

It usually helps to have a base in-market, visit regularly, or work with a local partner. If you are targeting local authorities and tenders, a French presence is a must. But patience and persistence is key.

Top tip

While English fluency can be high, depending on the sector, many businesses choose to operate in French, especially where the end customers are consumers. It’s wise to seek support from an interpreter, local expert or partner.

Contact the Enterprise Ireland France team

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Germany

While engineering leader Germany is lagging when it comes to smart cities and sustainable mobility, the market is about to skyrocket.

Germany’s mobility market, which is state-owned in many areas, is not yet leading compared to other European countries, while its digital infrastructure also needs development.

Mobility here is determined by the large German automotive industry, which employs over 800,000 people. That said, German consumers, especially younger generations, appreciate eco-friendly mobility solutions such as buses, bicycles and electric vehicles.

These will come more to the fore in the coming years as the German government and companies in the market will focus increasingly on sustainable mobility. Its current focus is on connectivity such as 5G for public transport and on regulations around micro-mobility.

The electric vehicle market is expected to grow by 25% a year by 2026, with shared mobility growing by almost 12% annually over the same period, bringing user penetration to 79.5% from 66.4% in 2022.

The integration and interdependence of private firms (typically operators and solutions providers) and public players, such as municipalities, regulators and also operators, in the ecosystem is a major topic at present.

As Germany is lagging somewhat in terms of digital infrastructure, Irish firms have an opportunity to enter this market, as it is not at all saturated or fully developed yet.

Several Irish firms are already active here, including:

  • Zeus Scooters in over 20 cities
  • Cubic Telecom, which works with German carmaker Volkswagen on in-vehicle connectivity,
  • Luna Systems, which is collaborating with TIER Mobility GmbH, Europe’s largest micro-mobility provider, on a test for supplying security solutions for scooters.

Furthermore, the German ecosystem is proactively seeking new technologies and spending significant sums on new partnerships and technologies.

Across the board, Germany tends to appreciate quality and be willing to pay for it, so is not overly price-sensitive, and it can onboard innovative solutions quickly.

The Federal Ministry for Economic Affairs and Energy is providing research and development funding for all aspects of electric mobility, including drive technology, battery research, standardisation, the value chain, grid integration, charging stations that use smart metering technology, and infrastructure.

While the standard of English is typically good, German is often spoken in a business context and companies entering the market need German language skills.

In addition, the German market can have challenging barriers to entry, as potential entrants need to build trust and relationships first, which can involve upfront costs and a long sales cycle. However, when the trust relationship is established, you have the basis for a long and fruitful relationship.

Germany is currently working on the development of a future-proof integrated mobility infrastructure, which still provides challenges for the country. While the mobility market is not hugely competitive yet, once a market opens up, Germans tend to be fast in adopting and creating their own solutions.

Top tip

Be as prepared and committed as you can. Germany isn’t a market for opportunistic sales. If possible, a physical presence there and constant visits to the market for trade shows and direct prospect visits are key for success. This ensures you can take advantage of the long lasting opportunity the German market offers.

Contact the Enterprise Ireland Germany team

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Italy

Italy is shedding its reputation for slow digitalisation, with a boom in micromobility and extensive funding for smart and sustainable mobility.

Committed to the European Green Deal 2050 and with aggressive targets to reduce emissions, Italy is focusing on sustainable mobility and smart infrastructure. Smart mobility projects are already underway in Milan, Napoli, Sardegna and Veneto.

One in three people in Italy have changed transport modes due to the pandemic, with a clear shift from public transport to driving, walking and shared mobility.

While Italy has been slow to digitalise, it is one of the fastest growing markets for shared mobility, driven by concerns around climate change, fuel costs and inflation.

Micromobility is booming, with eight in 10 Italians willing to leave their cars to use shared scooters and bikes. This is positive, as Italy trails only Luxembourg in the EU for car dependency.

  • City councils
  • Italian firms such as Bitt, Helbiz and Leonardo, which have market intelligence, national operations and significant bargaining power
  • International entrants, including Bird, Lime and Tier

Through the NextGeneration EU fund, Italy is receiving €31.4 billion to develop infrastructure for sustainable mobility and €68.8 billion overall for greening its economy and infrastructure.

There’s particular focus on:

  • Smart transport and logistics
  • Smart cities, with sustainable and smart mobility at their core

While Italy is a highly competitive market, if not a saturated one, for shared mobility in Tier 1 cities, there is plenty of opportunity in smaller Tier 2 cities around shared mobility services, such as scooters. That is due in particular to the favourable climate, tourism, and the strong university culture in these cities.

Irish firms will need a partner in the market to help navigate the extremely competitive market and local government bureaucracy, and to be made aware of and compete for tenders.

Although competitors may already have a strong market share, there are opportunities for Irish companies to partner with them with white-label software solutions for smart mobility.

Top tip

To navigate the bureaucratic nature of public tenders in Italy, engage with a local partner or hire locally. Italian competitors have invested heavily in recruiting city managers, operations teams, and public policy teams to help scale operations.

Local laws and tender regulations differ in every municipality so liaise with a local legal or policy expert.

Another potential route to market is developing a partnership with an established transport or mobility company in Italy that wants to expand its smart mobility portfolio on the back of national initiatives and a booming private sector.

Contact the Enterprise Ireland Italy team

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Netherlands

Ranked first in Europe for green mobility, the Netherlands remains a good testing ground for smart mobility initiatives, with high levels of innovation and low language barriers.

With excellent transport and logistics infrastructure, the Netherlands is a leader in this space. The Dutch are always on the move, and the government is looking at new technologies to solve challenges related to transport, the environment and safety.

Famous for its love of cycling, the Netherlands had an estimated 22.9m bicycles in 2019 (more than one per person), including 2.4m electric bikes. That said, the rate of passenger car ownership is growing faster than the population.

Powered by a steady influx of investment capital, the private sector has led the way in Belgium, driven by:

  • rapid technological innovation (electric powertrains and automated driving systems)
  • new business models, including transport network companies
  • increased use of drones, electric scooters and bikes

The public sector has become markedly more active, as many cities and others have sought to proactively shape the future of mobility in the Netherlands.

  • Ministry of Infrastructure and Water Management
  • Smart Mobility & Internationalization at RAI Automotive Industry NL(Dutch cluster organization of the automotive industry)
  • Large private delivery companies such as Just Eat Takeaway.com

The Netherlands aims to be carbon neutral by 2050 and has ambitious strategies in place to achieve this, such as planning for all public transport buses to be zero-emission by 2025. It’s also eager to lead internationally on:

  • The Internet of Things
  • Smart cities
  • Connectivity

The Dutch government, together with provinces, metropolitan areas, public transport companies and the rail infrastructure management company ProRail, has drawn up the Vision on the Future of Public Transport for 2040.

  • Two large consortia of Dutch companies and knowledge institutes will receive  €47m in government funding to develop ground-breaking electrification and hydrogen applications in automotive, maritime and air transport.

Other key trends in the market include:

  • Mobility as a service (MaaS)- emerging service where the traveller can plan, book and pay for the entire trip through a single app.
  • Electric bikes & Bikes as a Service – Irish company Moby are powering global delivery businesses with the best ebikes and service packages including fleet management and maintenance. Another example is Kuma Bikes, an Irish electric bike company based in Dublin.
  • Reduction of congestion and emissions, through developing self-driving vehicles and improving car traffic information for drivers
  • Improving data quality and transmission to enable new trends and reduce harmful emissions

As the Netherlands is a mature market in terms of digitalisation, that presents a challenge of its own, as Irish firms need to have an exceptional niche product or service to catch the interest of potential customers in the market.

The keen local interest in innovation and the high levels of English fluency compensate to a degree for those looking at the market.

Top tip

As the Netherlands did not submit a recovery plan to the EU, there is no recovery and resilience funding for projects there, unlike all other EU member states.

Contact the Enterprise Ireland Netherlands team

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Spain

Spain excels in high-speed rail and efficient public transport, but a huge push is on to move to zero-emission transport and travel.

Given the importance of tourism to its economy, Spain has invested heavily in transport infrastructure and connectivity, including:

  • the second most extensive high-speed rail system after China
  • extensive modern public transport in urban areas, meaning fast journey times
  • advanced high speed networks

While there is burgeoning innovation in smart mobility, digitalisation lags behind the main European economies. Shared mobility is increasingly popular, with thousands of shared cars, motorbikes, bikes and scooters available in Madrid and Barcelona.

Spain also lags in electric vehicle (EV) adoption, but plans to have 5m vehicles and 360,000 charging points by 2030 (up from 65,000 vehicles and 13,400 points in 2021), with significant EV battery production slated in the market. It is also testing autonomous vehicles, with a daily on-campus bus service already running at Madrid Autonoma University.

  • Public sector (Renfe, Correos, Ports 4.0 fund)
  • Private companies (Alsa, Airbus, Ferrovial,Cabify, Acciona)
  • Smart Mobility association

Spain has ambitious emission reduction goals set for 2030. To achieve them, it seeks to reduce private vehicle use by 35% in cities by 2030 and to ensure 55% of vehicles sold will be zero emissions by then, with no diesel or petrol vehicles sold by 2035. Hydrogen-powered vehicles and rail is also a priority.

Spain is receiving €6.5 billion from NextGeneration EU in invest in sustainable, safe and connected mobility in cities and towns, including:

  • Traffic and emission reductions, through low-emission zones, high occupancy lanes, zero-emission buses, digital public transport and traffic management tools
  • Greener vehicles and charging points
  • Electric mobility
  • Improving suburban rail and digitalising rail security
  • Digitalisation of logistics networks.

Other opportunities for Irish firms include:

  • Mobility related to ecommerce logistics and carbon emissions
  • Supporting Ferrovial’s expertise in zero carbon aviation.

Spain is a competitive market for mobility and typically has a relatively long sales cycle regardless of the sector, so a premium offer and patience are required.

Make sure you have local support in the market, as you need to speak the language in this cost-driven market, and sales are heavily based on reputation and relationships.

Spain is one of the most decentralised countries in the world, with 17 autonomous communities and five official languages, so a one-size-fits-all approach may not work.

In fact, the Spanish state is managing 55% of the national recovery and resilience funding, with regional authorities administering the rest. Market entrants need to understand local, regional and national regulations and bureaucracy.

Top tip

Consider attending upcoming events such as Global Mobility Call 22 (Madrid, June 14-16 and Smart City Expo (Barcelona, November 15-17).

Contact the Enterprise Ireland Spain team

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Designing the workplace of the future – A new guide for all employers

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    The world of work was shaken to its core in March 2020 when the Covid-19 pandemic hit Ireland and hundreds of thousands of Irish workers had to suddenly work from home.

    The slow and steady drive towards digitalisation accelerated sharply, and virtual meeting programmes such as Zoom and Microsoft Teams became commonplace. Now, 15 months on, and with the vaccination programme well underway, employers can begin to think about a return to the workplace – hopefully permanently. But the many lessons learned during the pandemic has had both employers and employees thinking about the future workplace – will we ever go back to the way it was? And do we want to?

    Enterprise Ireland has produced a new guide, ‘Emerging Through Covid-19 – The future of work’, which aims to help business owners think about the positives and negatives from the last 15 months and to use these to build a sustainable business model for the future. With many employees welcoming the idea of remote working into the future, either full-time or for part of the week, is it time for employers to recognise the positives of remote working and tie it into their company policy on a permanent basis? And if so, how can they make it sustainable?

    “This is a follow-on from last year’s Covid-19 employer guide; last year we looked at the health and safety aspects of returning to work, while the theme of this year’s guide is around the future of work,” explains Karen Hernández, Senior Executive, Client Management Development at Enterprise Ireland. “During Covid, the workplace has changed, the nature of work has changed for a lot of people, and what employees expect from their employers has changed. Our aim is for all companies to be prepared to put in place the right structures and practices that suit their business needs and also the needs of their employees.

    “A large portion of our client base experienced the need to rush into remote working when Covid-19 hit Ireland in 2020. There have been some advantages and opportunities associated with this; some businesses found they’re as productive, if not more productive when working remotely. This guide aims to help companies take what’s worked well over the last 15 months and create some sustainable practices and processes that work for everybody.”

    The guide was developed in partnership with Fredericka Sheppard and Joyce Rigby-Jones of Voltedge, a highly regarded HR consultancy based in Dublin. “The objective with the guide is that it gives you a framework to start developing your own plan for the return to the office,” explains Fredericka. “All organisations are going to have their own dynamic, their own set of circumstances, so there is no one-size-fits-all solution to this. Our aim was to identify key pillars for organisations to use to develop structure and a suitable framework for their business.”

     

    The importance of asking questions

    A huge emphasis is placed on the need for communication with employees when making these decisions. “Employers need to engage with and actively listen to their employees, while also driving their business forward,” says Joyce. “This is intended as a broad guide, where employers can pick and choose the relevant pieces to them.”

    “It’s very important that employees feel that they’re being heard,” adds Fredericka. “However, decisions need to be made based on a number of factors, and employee input is just one of those factors. Obviously it’s really important to manage expectations and sometimes it’s just down to how you ask the questions. Give them some context from a business point of view. It’s not just about the employees’ wish-list, it’s also about creating a sustainable workplace for the future.”

     

    Managing remote workers

    Many employers are looking at keeping some sort of remote or flexible working practices in place – and offering this flexibility can be very positive when it comes to attracting talent. “Almost two-thirds of our client base are saying they find it hard to attract, engage and retain talent,” says Karen. “Companies need to consult and stay close to their employees and ask them what they want – and include aspects like flexibility as part of a value proposition to attract candidates.

    “Many companies that we are working with are looking at some sort of hybrid model, where employees combine time working in the office and time spent working remotely, at home or in co-working spaces. There are huge upsides, such as accessing skills from different parts of the country that they never would have before – offering remote, flexible or hybrid working is attractive to employees.

    However, this can be difficult to manage, and companies need to consider what works for the team as a whole as well as what’s right for individuals within those teams.”

    “There’s a big need for management support and training, especially for middle and line managers and supervisors who are dealing with a remote workforce,” explains Joyce. “It’s difficult for them, but it’s important that they get it right. Ensuring your managers are confident in what they do, and in their engagement with their teams. We are hearing that companies are looking to bring their employees into the office more, but it’s about getting that blend right between remote working and the office. One aspect that we emphasised in the guide is the need to make sure you are not discriminating against employees who are not in the office environment.”

    Identifying and managing issues such as burn-out and isolation is essential if companies are to offer some sort of remote working policy. “Companies that have regular check-ins and meetings with staff and use different methods of communication, such as video calls, emails and direct messaging are more likely to keep employees engaged when working remotely.  It’s also important for employees to have individual focus time, where they are able to detach from colleagues and concentrate on getting their work done without interruption”, says Karen.  “Long term, we don’t know enough about hybrid working for a definite ‘best practice’ but instead companies should pilot different ways of working – for instance, we have some companies who are trialling a ‘team days’ concept – having the whole team in for certain days of the week, then for the rest of the week, they’re working from home.”

     

    Piloting the new workplace

    The aim of the guide is to pose those broad questions that will help employers in every sector decide on the right workplace for the future of their business – but there is no need to rush into a decision. “The biggest challenge for employers is making the decision as to how you’re going to handle this working environment,” says Joyce. “Are you going to fully return, are you going for a hybrid, can you facilitate a full return in the workspace that you have? Employers need to make very big decisions, and very strategic, long-term decisions, so we’re suggesting that they talk to their employees about what they want and then piloting whatever they plan to do before they make any strategic decisions that will impact on the business going forward.”

    Covid-19 has had a huge effect on how we work – but now is the time to use what we have learned since March 2020 to create a more inclusive, sustainable business model, one that pushes the business forward while creating a culture that values employees and their health and wellbeing more than ever before. This can only be a positive thing.

     

    To download Enterprise Ireland’s new guide, ‘Emerging Through Covid-19 – The future of work’, click here.

    fintech

    Mexican market ripe for Irish fintech firms seeking to expand

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    With an underbanked population and skyrocketing use of mobile tech, Mexico offers an open door to growth for Irish financial technology firms seeking new opportunities in the global market. This is a market with a real need for innovative financial services.

    “Mexico is in the early stages of a financial technology (or fintech) revolution, with start-ups focusing particularly on flexible, low-cost, accessible services,” says Sara Hill, SVP Southern US and Mexico at Enterprise Ireland. “It is the Latin American hub for the sector and local start-ups flourishing in the wake of local pioneers such as Kubo, Financiero and Conekta, all peer-to-peer payments firms which first emerged in 2011.”

    Partly driven by the same social distancing regulations and decrease in the use of cash seen everywhere because of the pandemic, use of mobile banking is soaring in Mexico, up 113 per cent between 2018 and 2020.

     

    Lending and payments lead the way

    Across the board, the financial services market in the country remains underserved, but local consumers and businesses are keen to see new services in this area and new financial companies don’t have to compete with legacy institutions as much as they might have to elsewhere.

    “Only 47% of the population in Mexico has a bank account,” explains Sara. “That’s why we’re seeing lending and payments as the top two areas in which fintech start-ups are operating. There continues to be huge demand and extensive room for growth in this area.”

    Start-ups are also active in Mexico in categories such as blockchain, crowdfunding, cryptocurrencies, digital banking, enterprise financial management, personal financial management, remittances and foreign exchange, scoring, identity and fraud, and wealth management.

    “In the Austin, Texas office of Enterprise Ireland, we not only support Irish businesses seeking to break into nine southern states of the US, but also those who want to enter the Mexican market,” says Sara. “We help them evaluate the opportunity there for their business and also offer in-market support such as introductions to buyers, partners and decision-makers.”

     

    Irish businesses soaring in Mexico

    Fintech businesses in Ireland considering this step will be in good company, with Irish tech firms already thriving in Mexico including Workhuman, Adaptive Mobile and Daon.

    Other Irish businesses also active in Mexico include Ornua (Kerrygold’s parent company), mobile recharge provider Ding, forklift firm Combilift, food packaging manufacturer Fispak, GM Steel Fabricators, and pharmaceutical engineering firm Prodieco. Overall in 2019, Irish exports to Mexico were worth €83m, up 36 per cent on the previous year.

     

    A growing market for fintech

    When it comes to fintech, Mexico is currently ranked 30th in the Global Fintech Ranking, with Brazil ranking 19. Mexico has over twice as many adults that use digital banking, however, compared with Brazil, Colombia and Argentina.

    The Mexican fintech is worth 68.4 billion pesos (around €2.8 billion), with about 4.7 million users out of a total population of 127.6 million. For context, the global fintech market was valued at US$127.66 billion (€105.9 billion) in 2018, with expected growth of 24.8% by the end of 2022.

     

    Understanding market challenges

    Rapidly developing markets like this one undoubtedly present challenges to potential new entrants. With a troubled history of corruption in the past, some lingering distrust of financial institutions remains, but the introduction of a stringent fintech law in 2018 has helped.

     

    “This law regulates which financial entities are legally allowed to operate and offer financial services in Mexico,” explains Sara. “So you have to make sure that your business is going to meet the criteria. The law was introduced to protect users and consumers, to prevent money laundering and to help foster an environment of trust.”

    Geography can also be a challenge for companies expanding in Mexico, with many rural areas having no banks or ATMs, meaning people are less likely to have bank accounts. While this presents a great opportunity for digital payments, internet and mobile service can be poor in some locations. As a result, fintech firms tend to be based in urban areas, with more than half of the 700 or so start-ups in the sector based in Mexico City.

    Other factors inhibiting financial inclusion in Mexico include income, education and even gender. That gender gap should close quickly, however, as men and women are equally likely to use mobile tech and social media.

     

    Building lasting relationships

    When it comes to exporting, understanding the nuance of any new market is vital. Firms must remember to localise products and messaging properly, for example, as Mexican Spanish is different to that spoken in Spain.

    On-the-ground agents or partners are also crucial when it comes to navigating the local business environment and building customer relationships.

    “People in Mexico want to do business with those they know and trust,” says Sara. “You’ll need to make multiple visits to build relationships or to have a strong partner on the ground who can represent your business.”

    For Irish fintech firms seeking to expand overseas, Mexico undoubtedly presents a real opportunity to build a user base quickly in a rapidly developing and dynamic market.

    Get advice and insight into local market conditions and practices in Enterprise Ireland’s Exporting to Mexico guide.

     

    Paula Carroll

    New Frontiers: The first step for ambitious entrepreneurs

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    IPaula Carroll - New Frontiers National Programme Manager

    Ireland has a fine reputation around the world for being a country of innovators – indeed, it’s hard to find someone who doesn’t have an idea for a new product or service, or a vision to make an existing solution even better. But translating that idea into a viable business is a massive jump – which is where the New Frontiers programme comes in.

    Delivered on behalf of Enterprise Ireland in 18 Institutes of Technology and Technological Universities across Ireland, New Frontiers is Ireland’s national entrepreneurial development programme, as Paula Carroll, New Frontiers National Programme Manager, explains:

    “It’s a programme designed to support early-stage entrepreneurs, from when they have that business idea in their head right through to when they bring that product to market. It offers a structured and supportive environment and runs across three stages.” 

    Delivered in three phases, the New Frontiers programme is designed to be as user-friendly as possible, allowing you to explore and develop your idea over a number of phases

    “In Phase 1, someone may come in with a sketchy idea and want to explore and validate it,” explains Paula. “Within six to eight weeks, they work on the idea and find out if it can become a valid business that’s worth progressing. It’s part-time so requires no commitment; the participant can complete the phase in the evenings or at the weekend without it affecting their job. It consists mostly of interactive workshops.

    “After Phase 1, participants can apply for Phase 2, which is an intensive six-month immersive programme.

    “In Phase 2, participants work on their business idea full-time; the programme includes interactive workshops, five one-to-one mentoring sessions and a €15,000 stipend.” 

    They also get a lot of support within the colleges or universities in which the programme is being run, and have the opportunity to immerse themselves in the entrepreneurial ecosystem. During this phase they get milestone reviews, to ensure they stay on track as six months can pass very quickly indeed.

    “At the end of the six months, sometimes participants can look for additional support either from the Local Enterprise Office or from the High Potential Start Up team in Enterprise Ireland. They could also stay on for Phase 3, which is another three months of support.”

     

    Creating success stories

    Enterprise Ireland has been managing the programme since 2012, and since then, approximately 4,900 individuals have participated in New Frontiers, with 1,500 going on to the immersive Phase 2 of the programme.

    “We also did an evaluation at the end of 2019,” says Paula, “and out of the people we surveyed who had completed the programme, over 83% were still in business. Plus the turnover of those people surveyed was over €300 million.”

    Some of those still in business are genuine Irish success stories. For instance, a 2019 participant is Uccello Designs, a design and manufacturing company providing stylish assisted-living devices such as an innovative no-pour kettle; Uccello Designs now employs 11 people in Ireland, Australia and the UK. Another success story is 2017 participant Kianda Technologies, which has developed a no-code business process automation platform that allows business users address core business process management needs without the need for outside help. Now supported by Enterprise Ireland’s High Potential Start-Up unit, Kianda recently experienced a 40% increase in their customer base and is aiming to triple the size of their team by the end of the year. And, Immersive VR Education in Waterford, one of the 2016 participants, raised €6.75 million following a successful IPO in 2018.

     

    Supporting every corner of the country

    The regional aspect of the programme plays an important role in Enterprise Ireland’s commitment to developing sustainable businesses all over Ireland. “It’s offered in 18 institutions throughout Ireland,” says Paula. “With Covid, obviously, it all went online but post-Covid, Phase 1 will remain online – which makes it accessible to everyone, regardless of where you live – but Phase 2 will have face-to-face meetings, interaction and networking, as well as some online.

    “Having that interaction is so important when building a business as other people can challenge an idea within a safe environment, and give participants the opportunity to practise their pitch in front of mentors and peers. 

    “New Frontiers encourages people to pitch from day one; we get them to deliver an elevated pitch at the very start, and by the end of even Stage 1, that pitch has been refined and developed through practice.”

    The New Frontiers programme is open to early-stage entrepreneurs based in Ireland over the age of 18 with an idea that has employment and export potential. Start dates vary according to your chosen location, but the application process is quick and easy. Simply fill in the online form available on www.newfrontiers.ie and a programme manager will get in touch to discuss your project and send you an application form

    Visit www.newfrontiers.ie for details on how to apply.

    Enterprise Ireland’s top tips for entering the German market

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    Germany is Ireland’s second-largest market for services exports and its fourth-largest market for merchandise exports, offering the twin benefits of zero currency risk and close geographic proximity.

    If you are considering doing business in Germany, please be sure to explore our ten tips to enter the market below and also be sure to reach out to our team in Düsseldorf

      • Expect 1-3 years’ timeline for market penetration in Germany
      • The transportation infrastructure in Germany is one of the best in the world and includes international freight arriving in the 3 biggest harbours, namely  Hamburg, Bremerhaven, Wilhelmshaven. Germany also boasts 16 international and 20 national airports, a well-established railway system, and a world-class road network.
      • “Me-too” products are difficult to get established in the German market. Innovative products are more likely to gain a market share
      • Innovative products with a focus on energy-saving and cost-saving for the automotive, life sciences, agri-tech, software and engineering services market will be attractive as Germany leads in these sectors.
      • Buyers in Germany tend to purchase goods and services from all over the world but prefer products offered in Germany; even if they are at a higher price. Customers trust homemade products and services more than those found abroad.
      • Import tax is “0” for goods imported from Ireland to Germany and sales taxes is at 19% on goods and services;  7% for food, hospitality etc.
        • (VAT will be reduced from 19 per cent to 16 per cent for six months starting in July as part of a stimulus package to speed up Germany’s recovery from the coronavirus shock. A lower VAT rate for hospitality would be cut by two points to 5 per cent over the same period.)
      • Germany is currently experiencing a shift in consumer demand for sustainable products, products from the region, health products.
      • Irish firms should invest in marketing, staff, legal and tax consultancy, language localization before entering the market
      • Meeting in person is important in Germany but you must first establish a formal exchange in writing. There are a range of social norms you should know about, always keeping in mind “the client is king”: 1) find out if the client contact is comfortable to hold the meeting in English or prefers  German (if needed have a German translator at side). 2) Use the formal salutation -3) Business first then if time allows and desired by the customer – small talk (but not too intimate).
      • 500 Irish firms are already active in the German market thanks to EI assistance, contact the local Manager Manus Rooney who will lead you to the sectoral market advisors in Germany.

      Enterprise Ireland is committed to helping Irish firms succeed in global markets and have industry experts on hand, ready to help you access the German market.

      Our Market Advisors are always available to support you and provide business expertise and on-the-ground knowledge.

      For more, download our Going Global Guide 

       

      If you would like to know what to prepare ahead of your first MA call, click the graphic below

      Digitalisation: a key strategy in ensuring export success

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      Start your digital journey

      During this period of recovery, Irish companies are looking at every way possible to grow and increase their business. While finding new markets for your offerings is an important strategy, the role that digital transformation can play in business growth cannot be underestimated. According to the World Economic Forum, over $3.1 trillion in productivity gains could be added to the global economy by digital initiatives by 2025.

      To ensure they share in these gains, Irish businesses are primed to drive their digital transformation strategies but it’s important that they take a holistic approach so their digital plan can evolve as the business grows.

      “Most Irish companies are somewhere along the digital maturity curve,” says Conor O’Donovan, Head of Marketing Communications and the Client Digitalisation Unit at Enterprise Ireland. “Some are at the very early stage, which means they have only begun to look at ways to optimise their business through moving to the cloud for example, or implementing a CRM to improve how they engage and record customer data and interactions. Other companies are further along the journey, and are embedding automation to streamline manual repetitive tasks, while others are adopting data analytics and AI into to improve data analysis and predicting trends that impact their businesses and providing real time customer or supplier information upon which they can make informed decisions.”

       

      Challenges and developing a digital mindset

      While the advantages of adopting a robust a robust digital plan are clear and plentiful, there are challenges facing SMEs. “Knowledge and awareness are key issues,” explains Conor.

      “Many businesses don’t know where to begin or who to speak with about their digital roadmap, and therefore find it challenging to select the right partner and vendor. Another key challenge is access to skills, both strategic and technical. says O’Donovan

      “Ensuring that these skills are available to the business either internally or externally are key success factors, as is developing a digital mindset across the business. Finally, the availability of finance can be a key challenge in implementing the right solutions.”

      Many businesses mistakenly believe that digitalisation is just about expensive technology, but this is only part of the story. According to Conor, there are four key aspects to a successful digital strategy, all of which need carefully addressing.

      “Firstly, ask yourself why you need a digital strategy. It’s easy to read about a new platform or technology solution but a good digital strategy must be aligned to your business strategy. Ask yourself a number of key questions. For example, what business objective can be enabled by the digital plan? Is it about finding new customers or increasing sales with existing ones? Is it about improving production efficiencies or about strategic decision-making, which requires the availability of real-time accurate information drawing from several business units or locations? These are all important questions that must be answered before you start.

      “The second key factor is process. It is hugely important to review and optimise processes before layering on digital technologies. An inefficient process before digital will remain an inefficient process after digital. Talk to Enterprise Ireland and the Local Enterprise Offices for help on this; we have LEAN programmes to support process optimisation.

      “The third key element is people. Digital strategies will only work if people at the senior levels and across the organisation understand digital possibilities, see the benefits to the business and champion its adoption. says O’Donovan

      “It must be driven by multiple people across the organisation and developing a digital culture and mindset across the business is key. There are multiple programmes on digital available from Skillsnet, the IMI and others to support this.

      “Then finally we get to the technology piece. This part can be daunting for companies with limited budget, so it’s vital to take the time to really assess the technology required. It’s also important to ensure interoperability as new technology comes on stream as part of a multi-year plan – so the technology ‘speaks to each other’. This will avoid expensive integration and data extraction issues at a future date.”

       

      Supports progress your digital journey

      While the above might feel daunting, especially for businesses at an early stage in their digital journey, there is plenty of help available. Enterprise Ireland can help Irish exporting businesses to focus on and develop their digital strategy. The new Digital Ready Scorecard is a short self-assessment online tool that enables businesses to assess their current digital readiness and identify any gaps. The scorecard also signposts supports from Enterprise Ireland, the Local Enterprise Offices and across Government. More information can be found on the Enterprise Ireland website.

      Enterprise Ireland also offers a €9k fully funded Digitalisation Voucher for eligible companies to engage independent experts to develop their digital strategies before purchasing any technology. All these aids will ensure that Irish exporters can reap the significant rewards of a robust and dynamic digital strategy.

      A person gathering market intelligence by analysing graphs and statistics on a sheet of paper

      Using market intelligence to inform your export plan

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      The saying that ‘knowledge is power’ is certainly true of successful exporting. Companies must use market intelligence to understand their customers’ requirements, cultural considerations, market trends and what competitors are doing, in order to succeed.

      Insights gained from high-quality market research are essential for good business decisions for companies with the ambition to grow, export and, indeed, survive. While successful products and services are built on sound market research, a continual process of keeping up-to-date with business intelligence is required, which can be time-consuming and costly.

       

      Market Research Centre

      That is one reason Enterprise Ireland’s Market Research Centre is such a valuable resource. It is the largest repository of business intelligence in Ireland and contains thousands of world-class market research insights, available to Enterprise Ireland supported companies.

      Reports include company, sector, market and country information, which help businesses to explore opportunities and compete in international markets. We use databases from blue-chip information providers such as Gartner, Frost & Sullivan, Mintel and others, which provide authoritative, verified information that is independent and reliable. Some of these reports cost tens of thousands of euro individually, so the value of accessing the service is immense.

       

      Using market intelligence to assess new markets

      The Market Research Centre is staffed by information specialists who help clients locate the most appropriate sources of knowledge for their requirements. The specialists can track down niche market intelligence that is not available through internet research and can also facilitate access to industry analysts to provide bespoke briefings that deep-dive into subject areas.

      While the UK and European markets remain vitally important for exporters, increasingly diversification into more distant markets is a strategic option. Critical to all such business decisions is access to authoritative market research.

       

      Using insights to make an impact

      An example of how the centre helps companies to explore opportunities in overseas markets is workforce travel company Roomex. Over the last two years, the company has targeted the UK and Germany and is now looking at the huge potential of the US market. Information specialists helped the company gain valuable insights by providing access to global company, country, market and sector data which helped the Roomex to analyse their target customer and competitor base.

      Enterprise Ireland’s research hub offers access to extensive predictive research on future trends, which is invaluable for companies interested in innovation. Knowledge of what might impact a market next provides an opportunity to develop new products or solutions. There are huge opportunities arising from disruptive technologies, such as driver-less cars, but also risks to companies which are not looking ahead.

       

      Growing your business using market intelligence

      Companies which are serious about exporting, growing and future-proofing their business should put continuous research at the heart of their strategy.

      If your company is considering expanding into new markets the Market Research Centre’s extensive resources and expertise should be your first port of call.

      Contact the Market Research Centre today.

      Sustainability – Sisk Talks Success with GreenPlus

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      The relationship between the construction industry and the built environment and consumption of natural resources on the one hand and sustainable development on the other is both complex and significant.

      Established back in 1859, John Sisk & Son – Building and Civil Engineering Design and Construction Services is one of Ireland’s most recognisable companies in the sector.  Headquartered in Ireland, with operations across the UK and Europe, the company places a strong emphasis on performance, quality, teamwork and a ‘hands-on’ management approach.

      Sisk were the first contractors / builders in Ireland and the UK to achieve ISO 50001 certification in energy management. Their decision to become involved with the Enterprise Ireland GreenPlus scheme “really opened our eyes to the whole scope of energy management in our industry which until then had been very much overlooked,” explains Sisk Group Energy Manager, Ian O’Connor, who is recognised as an international leader in construction sustainability and was named ‘Private Sector Energy Manager 2020 at the EMA (Energy Managers Association) awards.

       

      “It was very enlightening”

      “It started with ISO 50001 but we took our initial learnings from this, developed them further and expanded our scope to take a more forensic approach to monitoring our energy use.  This identified areas of significant energy savings.  We started to measure but realised we needed to know more. We needed to analyse our energy use – when it was used, how much was being used and which processes were using the energy.  It was very enlightening”.

       

      21 Targets Linked to the SDGs

      Last year Sisk launched their 2030 Sustainability Roadmap ‘Building Today, Caring for Tomorrow’.  Within that there are 21 clear and ambitious targets linked to the UN Sustainable Development Goals. “Industry collaboration is an important part of this. While we set these targets, we alone can’t achieve them.  We need the supply chain and our suppliers to come along on this journey with us. A rising tide lifts all boats and by doing this we hope to lead the way and we want people to join us on the journey.”

      Ian O’Connor is adamant that visibility and clear messaging of the Sisk vision is the way forward.  “We are very keen to demonstrate to all stakeholders of our business – clients, our employees, subcontractors, communities – what we are going to do to care for the environment in which we work.  We plan to be fully carbon neutral by 2030. By 2024 50% of our fleet will be electric and by 2030 there will be no combustion engines within the fleet”.

      The company also has some exciting and innovative ideas around digital technology, innovation and biodiversity.  In 2029 the business celebrates 170 years and to celebrate plans to plant a massive 1.7 million trees by 2030 in Ireland and the UK.  The first of those trees was planted in April this year.

      Advising other companies of the benefits of getting involved with the Enterprise Ireland GreenPlus programme he states:

      “I would say it’s really important to know where you are at the moment. Get a baseline and measure your impact on the environment, on energy use and on carbon emissions.  Set targets and then develop an action plan to start achieving those targets,” he recommends.

      Ian O’Connor acknowledges that in addition to the help from Enterprise Ireland GreenPlus, the achievements to date wouldn’t have been possible without everybody at Sisk.  “We wouldn’t have had the launch of our roadmap if support hadn’t come from the very top – from our shareholders to our forward thinking management team and the ‘boots on the ground’ and staff in the office.  Ultimately, most of the people that work at Sisk are based on construction sites these are the people that will have a huge contribution to our efforts” he said.  “We know that our targets are ambitious but there is a climate emergency and we hope Sisk can play a significant part in overcoming this challenge.”

       

      To get your business ready for a green future visit Climate Enterprise Action Fund or contact the Climate Action Team

      Karen_Hernandez

      People management and the new work landscape

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      For the past year and a half, employees across the country and indeed the world have found themselves in the unusual position of working from home. But now that some sort of normality is returning to our lives, many industry bosses are keen for their staff to put in a physical presence at the office – however, an overwhelming majority would like to continue working remotely in some way or other.

      “Since the onset of the pandemic, the nature of work has changed as, for many businesses, Covid has accelerated the move to remote working,” says Karen Hernández, Senior Executive – People & Management Pillar – with Enterprise Ireland. “Overall, this has been a positive move as many companies have found that productivity has remained the same or even increased during this period.

      “A recent survey, conducted by the Whittaker Institute and NUI Galway, found that 95% of respondents would like to work remotely at least some of the time – and with this in mind companies are now seeking to set up appropriate means of supporting remote, hybrid and flexible working.”

       

      Challenges ahead

      But while this new landscape brings both opportunities and challenges, Hernández says companies should also consider how to address some of the medium-term HR and management challenges now facing their business.

      “Possible issues include looking at ways to implement flexible working to suit both the business and the employees, utilising office space while many are working remotely and motivating managers and employees while they are engaged in work outside of the office,” says Hernández

      “In addition, staff may be anxious about returning to the workplace, so it is also important to consider health and well-being supports and be aware that remote working attracts the same rights and responsibilities as office-based work in terms of pay, benefits, health and safety and work time.

      “But where businesses are employing staff from other jurisdictions, they need to be clear that the employment rights, which govern the terms and conditions of employment, are those of the country where the individual is physically working.”

       

      No one-size fits all model

      The people management expert says while research indicates that a majority of employees want to keep working remotely, in some format, employers must understand that they run the risk of losing their best talent if they force everyone back to the office.

      “Transitioning to a fully remote or hybrid work model may seem easy as we have all been doing it for 18 months,” she says. “But in reality, getting remote and hybrid working right for the long-term is actually very complex and requires significant planning and communication with employees.

      “Firstly, companies really need to consider what’s best for them as a business as well as their employees. What’s right for one company may not be right for another, so a good starting point is to survey managers and staff to understand their needs. Then companies need to review and consider how easy it will be for employees to carry out responsibilities remotely – flexibility is key here as what works for one person, may not work for another.”

       

      New skills needed

      Maintaining engagement and motivating staff is incredibly important and Hernández says that managers need to develop new skills to engage employees in remote and hybrid work environments.

      “There needs to be regular two-way communication, via surveys, focus groups and all-hands meetings,” she says. “This is essential going forward and companies need to establish a culture of trust, with value placed on deliverables rather than on input or time spent online.

      “In addition, managers need to have the skills to lead and manage remotely – and this may require some additional training.  So, companies need to look out for signs of stress and over-work among employees as it is more difficult to spot in a remote environment.  Indeed, many are reporting that the merging of work and home life is making it difficult to switch off outside work hours and this is exacerbated when the work culture is focused on presenteeism, as employees feel that their time is being monitored.”

      Support from Enterprise Ireland

      Enterprise Ireland is aware that companies may need assistance when it comes to ensuring a smooth return to the office or developing an efficient hybrid or remote working model. So in in conjunction with Voltedge Management Ltd, it has developed Emerging through Covid-19: The Future of Work to help Irish companies to consider and reflect on these and other HR challenges they are likely to face over the coming months.

      “Its purpose is to help business leaders to understand how the world of work has changed over the past year and consider the impact these changes may have on the expectations and motivations of both current and prospective employees,” says Karen Hernández.  “Our intention is to provide insight into good HR practice and to encourage businesses to think about what approaches or responses may be right for them.”

       

      Click here to download your copy of the guide.

      Life Scientific: Partnerships powering success in a highly-regulated sector

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      The story of Life Scientific is one of perseverance in a complex industry, ingenious methods to prove a novel concept, and a leader with the utmost respect for the process and the people involved.

      Nicola Mitchell is the founder and CEO of Life Scientific: a company that develops high-quality, off-patent crop protection products, giving farmers a speedier, cost-effective option.

      We spoke with her shortly after she was announced as an EY Entrepreneur of the Year finalist to learn about the woman at the helm, the remarkable story of Life Scientific, and how Enterprise Ireland supports helped the company along the way.

      “Samantha Power is actually my first cousin,” Mitchell says as she describes the strong women in her family as her major influences. “Samantha’s mother really influenced me when I was younger. She went to the States, and was the first woman in Ireland to get a high court ruling that she was allowed to bring her children with her.” Vera Delaney, the Irish-American academic, author and Democratic Party member’s mother was a nephrologist who, after tenaciously climbing the ranks in a male-dominated sector during the 1970’s and 1980’s, refused a top job in a Manhattan hospital because it would mean giving up the face time she had with her patients. Mitchell cites this integrity as powerfully influencing decisions she made throughout her career.

      She credits her collegiate and later employment choices to her father, whose footsteps she followed by studying chemistry. He cautioned her not to accept a post in a large multinational corporation, but instead get a job in which she could learn and eventually build her own business. “In Ireland, for chemists, it’s all about multinationals, you’re doing manufacturing but have no sight of warranty or business aspects; you don’t do global stuff.” Her father had been what she describes as ‘a cog in a wheel’ in large multinationals, and Mitchell decided that she didn’t want to miss out on being global. “Why can’t we build a multinational in Ireland where we get to be global, where we get to do the R&D, where we get to build the brands?” With Life Scientific, Mitchell would go on to disrupt the regulatory landscape for off-patent agrochemicals from the unique R&D base she had built in Ireland.

      After spending 10 years working in a generic agrochemical manufacturing company, absorbing everything she could, Mitchell set her sights on starting her business, knowing that it needed to manufacture something of true value. “I started Life Scientific in 1995 and from the get-go knew it couldn’t be a service business. If you really want to be big, you have to have products, that’s how you’ll scale, that’s how you’ll be exponential.”

      Building a company with an expert offering

      Two decades of learning the tricks of the trade from leading multinationals allowed Life Scientific to pinpoint precisely where it was strong, and where it could add the most value. “We knew that if we’d built the capability around regulation — a new field at the time — we could not just understand it, but know more than anyone else about a very complex, strategic area of the industry.”

      Mitchell was always drawn to complexity. It’s what led her to challenge her team to reverse engineer the Coca-Cola recipe; to prove that they could not only take apart and recreate it but that they could take a fresh view with their product offering. In proving the point, they showed that they could offer farmers an identical product at a lower cost, and get it to them sooner being first to market.

      Mitchell is quick to point out that it wasn’t just about capability; it was also about humility. “There’s a phenomenal level of innovation and professionalism in our industry, and it’s a privilege to be in it. So why would we think we could do anything better than the multinationals?”

      Changing the rule book

      Challenging the status quo meant more than having an impressive story to tell, it meant calling for the rules of the game to be changed, rules that to date, had been largely written by and for the big multinationals. The world is new; we have capabilities here we didn’t have before. We have an LC-MS [liquid chromatography-mass spectrometry] system that wouldn’t fit a room when I was growing up, that was almost prohibitive for a multinational or a university to have. Now, they sit on benchtops, and we can’t keep up with the capability. We had to take a fresh view.”

      With a value proposition that was impossible to contest, doors that were to-date slammed shut began to open. The multinationals could no longer deny the science or the methods, and the business side of things started to make sense. “They could see we were much more nimble, flexible, fast, and entrepreneurial. So we’ve got some very good contracts, and that allowed me to pivot the model.”

      Yet even with new contracts in place, Life Scientific felt the squeeze from the regulators. With the weight of a global brand and status behind them, the multinationals would attempt to get Life Scientific’s products withdrawn. “Multinationals are very clever, and they don’t want us really, we’re competitors.”

      With an identical product and a transparent business came a sort of freedom; an ability to operate by different rules. “Regulatory submissions are complex. Knowing how to communicate, giving them a sense of who you are, your integrity, that you want the best, that you believe in your role as being a competitive choice for the farmer. So we thought if we put in the identical product, they don’t have to do any evaluation. If we can get them to accept an identical item molecularly, aren’t we simplifying things?”

      Life Scientific ended its beginnings as a contract research organisation, offering services in product development and regulation, becoming an independent product company. “We got our first product authorised in France in 2012 and have gone from €2 million in revenue to €60 million today.”

      Not the average day-to-day

      Mitchell is proud of her EY Entrepreneur of the Year nomination and hopes that in entering the competition, she can raise the profile of Life Scientific and the innovative science they have developed.

      During these turbulent times, the company is lucky to be mostly unaffected by COVID-19. They are operating in a space with one selling season, and thankfully, that had come and gone by the time the pandemic hit. Mitchell tells us that it has given companies like Life Scientific the opportunity to be appreciated once again. “The link between science and nutritious, sustainable food got lost. But now it’s becoming valued again.” But she feels that culturally, the company is suffering and will continue to suffer until they can operate together again. “Normally, I just look at somebody, and we have 10 ideas. Now I can’t see them, and for the new people coming in, who would normally absorb the energy and mimic what they’re seeing, that’s gone.”

      Partnering for a successful future

      Mitchell continues to look confidently towards the future. Her focus is on nurturing close relationships with company partners: the customers, suppliers and regulators with whom she speaks daily. Keeping these relationships blooming allows her to set and realise big goals, work with the best, move fast and scale.

      “In the next five years, we’ll be at €250 million. We’ll be building capability, relationships and new markets. It’s quite a visible roadmap.”

      Life Scientific will build important relationships in the area of big distribution to open up new markets; specifically, North and South America, though with different strategic approaches.

      “We work with the best which will allow us to realise South America, which is rapidly growing and hugely exciting for us.”

      For distribution companies in the already-established North American region, Life Scientific is offering the technology and putting the choice of operating or failing in the distributor’s hands. “We’re offering mirror images of the multinationals’ latest and greatest products to do with them what they will, working on their side to empower them in the face of big multinational suppliers.”

      Supported by Enterprise Ireland at each step

      Along the road to success, Mitchell says that the support she received from EI has been indispensable. “They gave us our first R&D grant, they’ve helped us and believed in us since 2006.”

      As well as financial grants, Mitchell took part in EI’s Leadership 4 Growth Programme and International Selling Programme, which she says equipped her with the knowledge she needed at the time. “The programmes have been hugely influential, connecting with people who are at the top of their game can set you upright.”

      Currently, as well as working towards adopting Enterprise Ireland’s Agile Lean approach, Mitchell is thinking about what winning the EY Entrepreneur of the Year award would mean. She tells us that it would provide visibility for Life Scientific and for anyone like her who had no expectations at a young age. “I’d be an ambassador for girls like I was: if you see it, you can be it.”

      Click here to watch the opening of Enterprise Ireland’s International Markets Week 2020, featuring Nicola Mitchell.

      The lion’s share of French business happening in Lyon

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      As the UK has left the European Union, France is now Ireland’s closest neighbour in the bloc and Claire Tobin Mercier, Senior Market Advisor at Enterprise Ireland, Lyon, says the strong trading history and good relationship between our two countries makes France an ideal environment for Irish investors.

      “France boasts the presence of large indigenous companies across multiple sectors along with a high number of decision centres for multinational companies, which are very much aligned with Irish capabilities,” she says.

      “For the second consecutive year, France is Europe’s number one destination for foreign direct investment with 23 important new projects announced weekly throughout 2020. These opportunities add to the huge €100bn investment envelope made available by the French government for post-Covid economic recovery to be spent in areas such as sustainability, infrastructure and digital transformation.”

       

      Looking to Lyon

      Tobin Mercier, who joined Enterprise Ireland in 2019, having originally moved to Lyon to establish the subsidiary of an Irish medical diagnostics company, went on to develop her own consulting business helping foreign companies get a foothold in the French market. So, she has a deep understanding of the capabilities for Irish industry within the region and says there is much scope for business development.

      “France represents a big and vibrant market on our doorstep and our relationship with the French has always been healthy and filled with mutual respect,” she says. “However, people often think of Paris when they consider doing business in France, but Lyon is regarded as the most ‘business-friendly’ city here. It has a fantastic geographical position, being bordered by both Switzerland and Italy, and is serviced with a highly developed infrastructure for air, rail, road, and river transport. In addition, the region has many similarities with Ireland, including its size, industrial ecosystem and many SMEs are also family-owned businesses.

      “The fact that several Irish companies have already set up businesses in this area is indicative of the potential the region represents – and some of the Irish players who have substantial presence include Life Scientific, Amarenco, Kingspan, Icon, Smurfit Kappa, Grant Engineering and Tricel.”

      Lyon is the capital of the Auvergne Rhône Alpes region, which is the second strongest economic region in the country. It is the birthplace of life sciences in France and is home to many big names in the industry, including Sanofi Pasteur, Boehringer Ingleheim, Medtronic and BioMérieux, which helps to drive the local economy.

       

      Sectoral expertise across life sciences and clean technology

      “It is also the top vaccine production centre in the world and recognised as a benchmark region on immunology, infectious diseases, diagnostics and veterinary health,” says the market expert. “In addition, it is one of Europe’s most important clean technology development regions and on this basis, allocates more money to renewable energy than any other region of France, making it a place of great business opportunity for testing innovative environmental solutions in energy transition and efficiency, mobility of the future and circular economy.”

      The area is also the second most important digital hub in France and the top industrial region, with a dense network of industrial corporations, SMEs, and innovative start-ups. And due to its strategic location, the logistics and transport sector is also particularly strong.

       

      Covid-19 impact

      Of course, the pandemic has had an impact, which can be seen in the dramatic drop in GDP of 8.3%, the largest ever measured here. But while 320,000 jobs have been lost, this figure is considerably lower than the 600,000 job losses which were predicted last year and is a result of the massive take-up of the partial unemployment measures put in place and also the much stronger performance of the economy in the last quarter of 2020.

      “Overall, French purchasing power did not suffer from the pandemic and in fact, the French people have saved an extra €111bn in comparison to 2019,” says Tobin Mercier. “So, there is hope on the horizon and I would encourage Irish companies to seriously look at the French market as a territory offering great opportunities for those who want to grow their export sales.

      “The ‘Irish friendly’ environment which is very prevalent here should be taken advantage of and if you are thinking of doing business in France, invest some time in research as the French market requires some investment at the start, and it can take some time to get a foothold, but once in, you will find a favourable and loyal business environment.”

      For more information on doing business in France, visit Enterprise Ireland’s French market page.