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.

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.

Neil Cooney

Market Watch – A view from Canada

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Market Watch Canada Neil Cooney

Key Takeaways

• The public health response to Covid-19 in Canada was well informed by previously having dealt with the challenges caused by an outbreak of SARS in the early 2000s.
• There were some challenges, and the Canadian government has been swift and efficient in offering support to businesses and citizens across the country.
• Canada, like many jurisdictions, is seeing a resurgence of cases and borders are currently closed to mainstream traffic.
• Remote working has seen many industries pivot to a new way of doing business.
• Many sectors are moving apace and there is opportunity for Irish companies.

Along with almost every country in the world, Canada has felt the effects of the pandemic, but Neil Cooney, Enterprise Ireland Country Manager Canada, says while a second wave is also taking its toll, there are some positive signs of growth.

“The challenges of Covid-19 are significant and as a result, the Canadian government has committed extraordinary support to citizens and businesses during 2020 as economic activity is considered to be approximately 5% below February levels,” he says. “However the economy has seen four straight months of growth, as restrictions have been modified to support more of the economy coming back online.”

“Of course, like many other jurisdictions, Canada is seeing a resurgence of cases, particularly in its main metropolitan areas – and borders are currently closed for most travellers. So those doing business need to look carefully at the limited set of exceptions which may apply (for critical infrastructure or in healthcare) – while most workers in government, banking, technology and professional services sectors continue to work from home.”

Aside from the challenges of not being able to visit the market, meet customers and attend trade events, Cooney says another effect of Covid-19 has been that some pending projects were paused as companies reacted to the uncertainty, but this is beginning to change.

“We have seen projects reignite in recent months as business priorities have shifted from crisis management or remote working challenges to an acceleration in digitalization and providing better experiences for customers and employees,” he says.

“Pivoting to virtual has been an area of opportunity for many of the leading trade events and while they vary in format and cost, these events have reduced the barriers for Irish companies interested in learning more about trends and opportunities in Canada – which has always been challenging to do on a coast to coast basis as it is the world’s second largest country.”

The move to remote working and distributed teams has pushed businesses to openly consider solutions from providers, which they will engage with online from start to finish.
And according to Cooney, the manufacturing sector and supply chains generally have done well in overcoming the hurdles posed by the current global crisis.

“Like many markets, the challenges of Covid-19 have accelerated change in many areas with companies and industries adopting new technologies,” he says. “This has represented an opportunity for Irish companies which offer innovative solutions in areas such as cybersecurity, remote working enablement and digital health.

“And Canada recently announced investment of 10 billion (CAD) in infrastructure projects -through the Canadian Investment Bank – in energy, agricultural irrigation, connectivity, zero-emission buses, early construction works and buildings’ energy efficiency.”

He says with the impact of the crisis on the energy sector, there has been an opportunity to focus investment on environmental mitigation of orphan wells, developing renewable energy and charting a cleaner, more efficient energy future.

And the construction sector has continued its buoyant level of activity with an increasing focus on modular housing deployment and environmentally superior building technologies currently in demand.

“In addition, Canada has continued to invest significantly in its public infrastructure, including a recent announcement supporting broadband provision– which at $1.75 billion represents the largest one-time federal investment in broadband.”

Home to several world class clusters including the world’s third largest aerospace hub in Montreal, Canada is North America’s second largest financial services and technology cluster, leading capability in Artificial Intelligence technologies, and has a burgeoning technology sector.

Toronto has the highest cluster of AI start-ups in the world and Montréal boasts the highest density of researchers and students of deep learning in the world. This has highlighted an opportunity for EI Canada to join the conversation with focus on Irish AI capable clients.

But while virtual meetings have made it easier for companies outside Canada to explore new commercial relationships, there are certain factors which need to be considered.

“Companies approaching the market often have to think region by region in sourcing distribution, identifying partners, winning customers and setting-up beachhead sales operations,” says Cooney. “And while doing this in-person has always been a challenge given the scale of the territory, the current reliance on virtual meetings has created more of a ‘level playing field’ for companies outside Canada exploring new commercial relationships.

“But it is officially a bilingual country which means many products and services must offer English and French to participate in procurement or Request for Proposal processes. To this end, Enterprise Ireland has recently opened an office in Montreal to assist Irish companies in doing business in the region.

“And while Canada is often seen as an excellent proving ground and valuable reference site for the wider North America market, it is crucial to display knowledge and responsiveness to the distinct needs of Canadian customers, local regulatory requirements and differences in business practice – something which definitely applies to the complex, multi-stakeholder buying processes we see in the Healthcare and Telco sectors.”

However, the country manager says that Canadians prefer to work with companies which already have an established presence in the market.

“Demonstrating local presence can be an important way to gain trust and to reassure potential customers of the availability of your on-going support,” he says. “Canada is a welcoming country when it comes to entrepreneurs, investors, and talent, including from Ireland, and is as a result attracting significant business to tech hubs such as Toronto, Montreal, Vancouver and Calgary. And during Covid-19, this may mean establishing a virtual presence and hiring locally in-market – which is readily possible given the ease of set-up in Canada.”

To learn more about the steps companies can take to address the impact of Covid-19 visit our business supports page.

UK packaging webinar title

The UK Packaging Sector Webinar – Opportunities and Challenges

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Few sectors have been affected greater by the COVID-19 pandemic than the packaging sector. The increased demand on food packaging with the upsurge of people eating at home and companies forced to rethink their packaging as minimalism made way for health and safety, the packaging sector was forced to change quickly to the ‘new normal’.

Now as a post-pandemic world looks somewhat in sight, it’s time to reassess the UK market and re-evaluate how Irish packaging suppliers can take advantage of the £11 billion UK packaging sector.

In this webinar, Andrew Finch, UK Packaging Consultant examines the UK packaging sector and discusses:

  • State of the UK market post-COVID-19 and post-Brexit

  • Opportunities for Irish packaging providers in the market

  • Latest demands from UK multiples and key industry stakeholders

  • Sustainability outlook in the UK

  • How to best engage UK packaging buyers

Gain key business insights with our on-demand UK webinar series.

    Getting There: Strategies to promote gender diversity in business

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    At Enterprise Ireland, we have long since recognised that one of the keys to optimising our start-up sector in Ireland is to boost gender equality in business.

    Diversity in business is vital to reflect our modern, global economy and create growing, sustainable companies. Extensive international research has shown that diversity increases innovation and creativity, while research from McKinsey & Co revealed that gender diversity leads to improved productivity and increased profitability.

    However, promoting gender diversity takes work. “Back in 2011, only 7% of our High-Potential Start-Ups (HPSUs) included a woman on the founding team,” says Sheelagh Daly, Entrepreneurship Manager at Enterprise Ireland. “Seeing this, we put in place specific goals and plans to increase this, and now, in 2020, 24% of our HPSUs have a woman founder.”

    While Enterprise Ireland is well known for its entrepreneurship supports for women, increasing gender diversity in business leadership is a relatively new objective. Towards the end of 2018, Enterprise Ireland embarked on research to look at the broader issue of women in business to assess the current situation in Ireland and to see what could be done to improve the situation. The research revealed some unsettling statistics: that less than 20% of CEOs were women, falling to 9% in larger companies; that Ireland had the highest gender gap in self-employment in the EU; and that less than 10% of venture capital funding was going to companies with female founders. The research led to the publication of the Enterprise Ireland 2020 Action Plan for Women in Business.

    “The plan has four objectives,” explains Sheelagh. “To increase the number of women becoming entrepreneurs, to increase the number of women founders in HPSUs, to increase the number of women-led companies growing internationally, and to increase the number of women in senior leadership positions in companies in Ireland. All these objectives are inter-connected, so to achieve one of them you need to achieve all of them.

    “We’ve set ambitious targets for ourselves – we’d like to double the number of women-led companies in the export market by 2025.” says Daly.

    Promoting female entrepreneurs

    While the figures have improved immensely over the past few years, it’s clear there are still some physical and psychological barriers that pose more of a challenge for women in business. For instance, women still bear the brunt of unpaid work in Ireland; in 2019, the ‘Caring and Unpaid Work in Ireland Report’ from the Irish Human Rights and Equality Commission and the Economic and Social Research Institute revealed that 45% of women provide care for children and older adults on a daily basis, compared with only 29% of men. Networking opportunities, mentors and the visibility of women leaders in enterprise have also been identified as important for women in business.

    “One of the initiatives we developed to address the barriers to funding for women founders is a women-specific call for the Competitive Start Fund (CSF), a fund for early-stage start-ups with the potential to turn into HPSUs, with specific CSF calls for women entrepreneurs. In 2020, 42% of the CSF projects awarded were led by female founders.” says Daly.

    “We also offer the ‘Innovate’ accelerator programme for women entrepreneurs which provides mentoring and a chance for women entrepreneurs to network and learn from each other.

    This is also what is done in Going for Growth, an initiative supported by Enterprise Ireland to offer peer support along with the mentoring piece from successful women entrepreneurs through interactive round table sessions.”

    “Another important initiative is the Part-time Key Manager Grant, which we introduced last year to facilitate the recruitment of part-time senior managers. The grant is available for both men and women, but aims to attract more women to senior management roles.”

     

    Accessible help

    While the specific female entrepreneur supports outlined above give gender equality a significant boost, a key aim at Enterprise Ireland is to make every programme accessible for all. For instance, the first stop for most entrepreneurs is Ireland’s network of Local Enterprise Offices (LEOs), with 31 offices in the country. The New Frontiers programme is delivered on behalf of Enterprise Ireland by Third Level Institutes in 16 locations around Ireland and helps entrepreneurs develop their business in readiness for further investment without significant financial risk.

    “We see really strong companies led by women at every stage of their journey,” says Sheelagh. “The supports are there, and we are really keen for more women to avail of those supports. I do believe that there are a lot of women with great ideas and the ability to put them into action; it’s then about the confidence to take that leap and use supports like the New Frontiers programme and aids from the LEOs. Those supports are there and can lessen the risk for both men and women when developing a new business.”

    “Through these initiatives, Enterprise Ireland seeks to address the challenges facing women in business and to inspire and accelerate the growth of Irish businesses by advancing gender diversity in leadership teams and excellence in our start-up sector.”

    A young man in a warehouse using his laptop to research his EORI number

    Customs – What is an EORI Number used for?

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    The Economic Operators Registration and Identification (EORI) number allows businesses to import or export with countries outside the European Union. It is a unique reference number recognised by all EU member states and is a requirement on all customs declarations.

    First introduced in 2009, the EORI number is a common reference number for interactions with the customs authorities in any EU Member State. All Irish numbers are prefaced with the prefix IE and contain eight characters. It is closely aligned to your VAT number but requires a separate EORI registration with Revenue.

     

    Register for your EORI number

    To obtain your number, companies can register directly through Revenue. If you are already registered on Revenue Online Service (ROS), you can register within a matter of minutes. Once the registration is complete, the number is active immediately.

    If you believe that you already have one, this can be verified by simply checking the EORI number validation service. Insert your VAT number prefixed by “IE” and select validate.

    Revenue has support for companies that have questions about their process. Visit Revenue’s website for the relevant contact details.

    The New UK – Succeeding in a Changing Market

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    The UK Market is evolving. Irish companies are demonstrating incredible resilience in adapting to a changing landscape and are now looking to the future. Join our webinar on February 11th at 9am ‘The New UK: Succeeding in a Changing Market’.

    During this webinar we will be joined by a panel of guests to explore changes underway in the UK and Ireland’s unique relationship with this major market on our doorstep. Panellists include:

    • Julie Sinnamon, CEO Enterprise Ireland
    • Adrian O’Neill, Ambassador of Ireland to the United Kingdom
    • Andy Burnham, Mayor of Greater Manchester
    • Steve Rotheram, Mayor of the Liverpool City Region

    The CEO of Simon-Kucher & Partners, a leading global consultancy specialising in top-line growth strategies, will share his insights on how to succeed in this new world and profit levers to consider.

    The webinar will also see CEOs from a range of Irish companies including Dublin Aerospace, EI Electronics, VRAI, EPS, and Gifts Direct/The Irish Store, sharing their UK growth strategies – inspiring others with growth ambition.

    Register to view our on-demand webinar.

    Pricing Excellence – Pricing Study 2021 Webinar

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    This Pricing Study was conducted by Enterprise Ireland in collaboration with Simon-Kucher & Partners.

    The study recorded nearly 500 responses with strong representation across all sectors demonstrating that the topic remains a high priority for businesses.

    This webinar presents the results of the survey along with guidance on how to develop and implement a price increase process.

     

    Gain key business insights with our on-demand UK webinar series

    2021 virtual trade mission – Reaching a global audience

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    In the not-too-distant past, companies wishing to establish a successful business relationship with firms overseas, would have relied heavily on international travel and perhaps an office or ‘boots-on-the-ground’ in the country in question.

    But these days, there is also another option as there are many international companies located across Ireland who are more than willing to do business with local businesses – and Gerard, Fenner, Senior Executive of Global Sourcing for Enterprise Ireland, says his team can help to bring Irish SMEs and multinational firms together.

    “The combination of modern technology and accessible travel has made the world a much smaller place and opened up a myriad of global opportunities for Irish businesses,” he says.

     

    Enterprise Ireland and IDA Ireland collaboration

    “But travelling to or even selling out of this country isn’t the only means for companies at home to expand into the international market as there are hundreds of multinationals right here in Ireland, which are willing and able to engage with indigenous firms. Since its formation in 2012, the Enterprise Ireland Global Sourcing team has been working with colleagues in IDA Ireland to introduce Irish owned businesses to international firms to respond to their specific requirements.

    “Working with companies across every sector, including pharma, medtech, ICT, engineering, financial services and energy, our team helps to develop relationships between Irish companies who are seeking to sell their product or service and multinational firms who wish to purchase same – so our particular focus is on providing sales opportunities and partnerships between Enterprise Ireland client companies and Ireland-based multinationals, predominantly IDA firms.”

    According to Fenner, there are many benefits to both the seller and the buyer in these business relationships and apart from supporting industry at home, it can also lead to opportunities in export markets – and winning a contract with a multinational gives a scaling Irish company a valuable reference site for its move into export markets.

    “We have found that one of the most productive means of securing relationships between Irish firms and multinationals based here is by means of events where introductions can be made, and sellers can have pre-arranged face to face meetings with potential buyers,” he says.

     

    Developing international relationships

    “In 2014 we organised the first Trade Mission in Ireland. The event was minister led and took place in various regional locations across the country over the course of a couple of days – and since then, it has taken place every year, apart from 2020, due to lockdown restrictions. It has always garnered a lot of interest and helped to develop contracts and future relationships.”

    So it seems that trade missions have long been an effective means of introducing businesses to prospective clients, but since the onset of the pandemic, industry across every sector has had to pivot online and learn how to do business in a virtual world.

     

    Online introductions and meetings

    As current guidelines continue to prevent physical events of this nature taking place, this year, on May 12th, the first ever virtual Global Sourcing Trade Mission became the alternative.

    Launched by the Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar, the event proved as popular as ever with 65 multinationals and 240 Irish companies registered with over 350 meetings. And according to Gerard Fenner, the online system was popular with both the variety of different international firms and indigenous companies looking to set up new business relationships.

    “When the Enterprise Ireland companies registered on the event platform, they provided some company information about what they do and what their offer is, and this allowed suppliers to search through this information and put in a request for a meeting,” says the international trade expert. “Similarly, the supplier was also able to request a meeting with a buyer in order to pitch a product or service.

    “Although these 15-minute meeting slots were different to how things normally work at a physical trade mission, it proved to be very successful with feedback from both sides indicating their positivity – and early signs show the possibility of new business relationships and further revenue to add to the €32 million in contracts which have been secured from these trade missions.”

    The Global Sourcing Team lead says there was also the added positive bonus of no travel, which meant that the multinational could bring in individuals from different areas of their business to meet potential suppliers – so rather than just one representative attending the event, firms could bring in someone from finance or with technical expertise to liaise directly with companies pitching a particular service.

    “Overall it was a great success and we have run smaller online events similar to this over the past year and many multinational firms have come back to us to say they were impressed with the fact that they got to meet so many different businesses,” he says.

    “So, the trade mission, whether it takes place at a venue or online, is an important platform for raising awareness about the capabilities of innovative Irish SMEs and helping them to establish future business relationships. And given the interest in this year’s event, despite the difficulties surrounding the current global situation, the future looks bright.”

    Global Recovery. Irish Opportunity

    International Markets Week 2021: Green agenda and digitalisation key areas for growth  

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    Global Recovery - Irish Opportunity

    It’s been said many times that exports are crucial to Ireland’s recovery in the post-pandemic world – and Enterprise Ireland is committed to ensuring that Irish companies take advantage of the many opportunities around the world to increase their business and bolster our economy as a result.

    A crucial event in the Enterprise Ireland year is International Markets Week, and this year, for the second year running, it was held as a virtual event over five busy days in October 2021.

    “When Covid hit, we decided that the event was too important to miss, particularly in the context of a global pandemic,” explains Anne Lanigan, Regional Director, Eurozone, at Enterprise Ireland. “This is a time when it’s even more important for our clients to keep their exports going, so we decided to go onto a virtual platform, with our market advisors available for a full week.

    “The market advisors are the boots on the floor, the people who can introduce client companies to potential buyers, so it’s a very practical week for people who want to do business.”

    This year, the theme of the event was Global Recovery. Irish Opportunity, recognising that the global economy is experiencing significant disruption – but while this disruption brings challenges, there are also significant opportunities.

    “Enterprise Ireland client companies enjoyed excellent overall export growth in 2019 of 8%,  with particularly strong growth in the Eurozone and North America of 15% and 16% respectively,” says Anne

     “In 2020, these figures stabilised, which was a very good result in the context of a global pandemic, but now we need to get back to 2019 levels of growth.”

    Opportunities for Irish companies lie in many areas, including the green agenda and digitisation. Throughout the world, companies are investing in green and digital strategies and governments are putting stimulus packages in place to drive a recovery based on a green and digital future. This investment represents huge opportunity for innovative Irish companies.

    “The current disruption in global supply chains also poses significant opportunity,” says Anne. “The drive by manufacturers in developed economies, in particular, to strengthen the reliability of their supply chains so that they are more easily accessed from a geographic and an administrative perspective, creates the opportunity for Ireland to embed themselves in these new supply chains. Ireland’s location on the edge of Europe puts us in a key position to capitalise on this move towards regionalisation of supply chains.”

     

    Finding opportunities

    It’s clear from this year’s International Markets Week that Enterprise Ireland client companies have recognised the importance of building a robust strategy to take advantage of these growth opportunities. A total of 710 Enterprise Ireland client companies registered for the event, booking a total of 1,663 meetings with market advisors from across the world.

    To get an indication of how companies were faring as the world’s economy recovers from the challenges of Brexit and the Covid-19 pandemic, Enterprise Ireland conducted a survey of the participants ahead of the event. The results were positive: 56% of businesses indicated that they have seen an increase in exports in 2021 compared to 2020, with only 11% reporting a decrease. And, 91% of companies expect sales to increase again in 2022. In terms of trends, the survey revealed that 80% of businesses viewed digitalisation as vital over the next 12 months, while 63% said that advancing their sustainability agenda was a priority.

    These results proved accurate throughout the event, which was officially launched by Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar, and Enterprise Ireland CEO Leo Clancy. Lydia Rogers, country manager for Enterprise Ireland in Canada, reported a real hunger in Irish companies to take advantage of the many opportunities out there. “I met many client companies at various stages of their export journey, from those accelerating their international growth and diversifying into new global markets to ambitious start-ups keen to explore the export opportunities in Canada. The week proved that Canada is a very attractive market for Irish companies in many sectors, including cleantech, consumer retail, engineering, life sciences, fintech and BPO, and a large proportion of digital technologies companies.

    “In addition, Canada was also identified by many client companies as an entry point and as a lower-cost gateway into the wider North America market.”

    And, as predicted, the green agenda and digitalisation opportunities were noted by Lydia as strong trends for Irish companies looking to Canada for growth. “Our team met many companies with innovative digitalisation solutions across travel tech, retail tech, ed tech, digital health, fintech, HR & talent tech, and IoT. There were also many SMEs with innovative solutions in areas including cleantech, mobility, smart energy and environment. Consumer retail was also a significant area of interest – a sector that experienced growth in 2020 despite the challenges of Covid-19. All in all, it was clear from this year’s International Markets Week that Irish companies have recognised Ireland and Canada make great business partners and are ready to reap the rewards from this vibrant and welcoming country.”

     

    View the virtual launch event from Enterprise Ireland’s International Markets Week 2021 below:

     

     

     

     

     

    The Climate Enterprise Action Fund: helping firms to boost low-carbon agendas

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    The Climate Enterprise Action Fund is a new initiative that was recently launched by Tánaiste Leo Varadkar and Minister Eamon Ryan with an initial allocation of €10m. The fund, which will be administered by Enterprise Ireland, is designed to help businesses take action to drive down their emissions and embed sustainability in how they work.

    Aidan McKenna, manager of the Climate Enterprise Action Fund at Enterprise Ireland, says the fund is one of a number of actions underway to ensure that Ireland reaches its ambition of reducing emissions by 51% by the end of this decade.

    “The fund builds on work Enterprise Ireland is already carrying out with companies throughout Ireland,” says Aidan. “We know the initiatives that work well and embed change in companies.”

     

    Low-carbon future

    “Reducing emissions will contribute to a more sustainable future for us all. However, along with the moral and political imperative, there is a very strong business case for Irish companies to adopt a low-carbon, sustainable agenda. One of the most important emerging market demands today is the need for companies to demonstrate their commitment to low-carbon production and sustainable business processes. It is vital that these companies are responsive to emerging market conditions.”

    “Many Irish companies sell products and services to larger, international companies at home and abroad. Increasingly, these companies are requiring suppliers to have sustainability at the core of their operations. A failure to show real progress can lock you out of the market.

    “Likewise, many consumers are placing environmental standards at a premium when making purchasing decisions. Issues such as using recyclable packaging, adhering to international sustainability standards and having transparent supply chains are now important factors for more and more consumers. Those that don’t change will miss out on the significant opportunities emerging from the low-carbon transition and risk being left behind.”

    Aidan McKenna says another important factor is that investors and capital funds – which are critical to start-up and growing companies – increasingly factor in environmental impact into their investment decisions.  “What is termed ‘green finance’ is now a reality and will shape investment decisions into the future,” explains Aidan.

     

    Climate Enterprise Action Fund

    Enterprise Ireland’s new Climate Enterprise Action Fund is designed to assist companies at various stages of engagement with this agenda. It comprises of three main offers:

    • Climate Action Voucher – a €1,800 grant to engage consultants to develop plans in areas such as resource efficiency and renewable energy.
    • GreenStart – up to €5,000 to measure carbon footprint and identify ways to reduce emissions and operate more sustainably.
    • GreenPlus – a fund of up to 50% to develop a multi-annual climate change plan aligned to international standards and frameworks.

    “The first two offers are driven by the principle of ‘what gets measured gets done’,” explains Aidan. “Establishing a baseline of current resource consumption and emissions profile is essential to begin a change process. These offers will be particularly attractive to companies beginning their low-carbon journey. The third offer, Green Plus, is aimed at companies further along the journey align to international standards and frameworks.”

    The Local Enterprise Offices (LEO) network has also recently launched a new scheme, called Green For Micro, designed to help smaller companies prepare for a low-carbon, sustainable future. With the help of a Green Consultant, small businesses with up to ten employees can get free advice and technical support on resource efficiency, how to better understand their carbon footprint and how to implement an environmental management system to reduce costs and lower greenhouse gas emissions.

     

    Driving change

    “We are acutely aware of the pressure that companies have been under facing up to the impact of the Covid-19 pandemic and our fundamentally changed trading relationship with the UK. While companies see the value in adopting more sustainable processes in principle, finding the time and resources to dedicate to that mission can be difficult. That is why our new initiative is designed to provide companies with tangible baseline information and a route map of what a low-carbon, sustainable future looks like for them. Having the low-carbon concept broken down into achievable actions makes the journey all that more realistic and the business wins all that more attainable.”

    “The global trading environment is tough and competitive,” says Aidan. “To succeed, companies need to think not just about the next order, but about how their sector will develop in the next five to ten years. Environmental sustainability and responsible production will be key drivers of business success into the future. Now is the time for all Irish businesses to prepare for that future.”

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

     

    UK Super Deduction: How it affects your UK customers

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    As part of the 2021 UK budget, the British government has introduced the largest tax incentive on plant and equipment capital investments in their history.

    This incentive, known as the super deduction, allows UK companies to claim 130% capital allowances on qualifying plant and machinery investments. This is an increase on the 18% ordinary relief prior and came into effect on 1st April 2021 running until the end of March 2023.

    Alongside the super deduction, the UK government also introduced a 50% first year allowance (FYA) on for special rate assets until 31 March, up from a 6% allowance previously. These changes make the UK capital allowance regime more internationally competitive, lifting the net present value of UK plant and machinery allowances from 30th to 1st in the OECD.

    What does this mean for you and your UK customers?

    This incentive reduces the effective cost of equipment for UK manufacturers, thus making plant and machinery investments more attractive.

    For example, under current rules, if a company invests £100,000 in a piece of equipment they can write off the cost of that equipment against their tax bill. i.e. Since 19% of £100,000 is £19,000, the effective cost of their equipment is £81,000.

    With the new super deduction, you can write off 130% of your investment in “plant and machinery” against your tax bill. i.e. 130% of £100,000 is £130,000, which at the 19% corporate tax rate allows you to write off £24,700. This means the effective cost of your equipment is now £75,300. Therefore, companies are incentivised to move forward or make additional capital investments.

    This is necessary as investment has dropped significantly due to the pandemic in the UK which was on top of historically low business investment relative to the UK’s peers. Chancellor Rishi Sunak reiterated this need for increased investment “With the lowest corporation tax in the G7, we need to do even more to encourage businesses to invest – for decades we have lagged behind our international peers”.

    It is expected that these incentives should act as a catalyst to the return of capital investment in the UK post pandemic with Stephen Phipson of MAKE UK (The UK manufacturer’s association) stating that the super deduction should “turbocharge investment”.

    For many manufacturers in the UK investment cycles have stalled or been delayed due to Covid-19 and Brexit and may now be looking at capital investments for the first time in several years. According to a MAKE UK survey following the budget announcement, almost a quarter (22.6%) of manufacturers stated plans to increase investments in response to the super deduction. Furthermore, 28.1% of those surveyed said they will bring forward planned investments in response.

    This indicates the impact that these incentives will have on investments in 2021 and beyond, potentially making your customer base more receptive to your offering.

    This is one of the first major supports brought in for manufacturers since the UK industrial strategy was axed earlier this year and it is expected that there is further supports to come for UK manufacturers. There has been calls for an overarching plan for business to replace the industrial strategy, bringing together policies around sustainability, skills and trade, but it is uncertain whether such a plan will be put in place.

    Nevertheless, the introduction of incentives like the super deduction are sure to be welcomed by manufacturers in the UK and Irish companies should ensure they are up to date with any supports their customers may be receiving for their product/service. To learn more about Tax super deduction visit www.gov.uk.

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