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

 

Healthcare digitalisation

Eurozone Recovery, Irish Opportunity: New EU funding and national initiatives drive healthcare digitalisation

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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 healthcare systems 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 healthcare digitalisation projects to target
  • Click or scroll down for more information about the healthcare digitalisation market in:
Belgium France Germany Italy Netherlands Spain

 

Estimated article reading time: 12 minutes

New EU funding

Across Europe, EU member states are seeking to digitalise their healthcare systems as rapidly as possible over the next three years. This is not only spurred by the pandemic, but also by an extraordinary increase in funding under the €750 billion NextGenerationEU plan, which seeks to build a more resilient Europe.

Two key goals of this plan are to make Europe digital and to make it healthy, with the development of digital healthcare an engine driving both of those. France, for example, is dedicating €2 billion to digital health alone in its national recovery and resilience plan.

“This unprecedented public funding across the EU represents an extraordinary opportunity for Irish businesses,” says Anne Lanigan, regional director, Eurozone at Enterprise Ireland. “Digitalising healthcare is now a core focus across the region, with hundreds of projects set to kick off over the next couple of years.”

Enabling 21st century healthcare

Within the digital goal, the EU wants to see artificial intelligence (AI) being used to improve healthcare and for public services to become digital where possible, taking advantage of 5G and EU-wide ultra-fast broadband.

The EU is also keen for member states to modernise their health systems with better access to new technology and medical supplies, and to invest more in research and innovation to develop vaccines and treatments.

Expanding digital health exports

With significant tranches of funding dedicated to both of these goals in individual member state recovery and resilience plans, this clearly presents a huge opportunity for Irish companies who produce or develop digital health products and services. That’s true whether they want to start exporting or diversify their export markets.

“The opportunities can differ from market to market and there are challenges to overcome,” says Lanigan, “but the message is clear from our offices around the region – strong Irish healthcare players with disruptive, niche or market-leading products, services or components can thrive while taking advantage of NextGenerationEU-funded opportunities.”

Given the need to pursue a market diversification strategy post-Brexit, she adds that it makes sense for companies that want to export or to expand their export activities to look to EU markets and try to take advantage of this huge increase in funded projects.

Priority areas of funding

Telemedicine

Everywhere in Europe, the pandemic has seen a huge surge in telemedicine, remote care and  remote monitoring, as both citizens seek to protect themselves and healthcare providers look to maximise resources. This sector is expanding rapidly, meaning that opportunities abound for businesses keen to export.

Optimising data and processes

Across the region, governments are also seeking to optimise processes in healthcare, making the most of software and apps, and aiming for a high level of interoperability and better co-ordination between all the different strands of healthcare systems.

They want to make better use of data, with most countries seeking to introduce or improve digital health profiles, which offer a single source of truth to each citizen and all their healthcare providers.

Other priorities

In most markets, both preventative and personalised medicine, including the use of AI in medicine, are also beginning to boom. As ever, any innovation in medical devices and device components is also going to be of interest to European customers, especially in Germany and Italy.

Innovation in medical imaging is also highly sought after, particularly in France, where it is a core focus. Medical areas in particular focus include: cardiac health; diabetes; oncology; and respiratory diseases.

In some less mature markets, such as Italy, there are also opportunities for companies that can provide innovative solutions around connectivity for healthcare locations and digital skills across the health and medical workforce.

Understanding the challenges

National healthcare systems are never straightforward, and the level and nature of the complexity involved varies from market to market. Most have both public and private healthcare systems running in parallel, although the public/private split varies significantly.

In some countries, such as Germany and Spain, private hospital chains and large insurance companies that offer branded clinics and digital products are significant actors.

While the increase in EU funding is primarily focused on public healthcare, it is worth bearing in mind that a private healthcare company can often make faster decisions and be less hamstrung by legacy and regulatory processes.

Where healthcare is concerned, localisation is important in every market, even in those with a high degree of fluency in English.

The value of local partnership

Those seeking to sell into the public healthcare system in any EU market typically need to work with a local systems integrator, who is used to navigating the complexity of the national system and national tender processes.

“Whether your company is focusing on securing public or private customers, you will need a local partner who understands the healthcare system and you may need a local office or representative,” says Lanigan.

“Part of Enterprise Ireland’s remit is to make introductions locally and to enable Irish companies set up the partnerships they need to succeed. Talk to us and we can help you.”

Digital healthcare: The Irish Advantage

While any Irish company operating in the digital healthcare space needs to offer a standout product or service to gain traction in export markets, the good news is that Irish firms are typically keeping pace with local competitors and can garner market share fast when their offering has the edge over those developed in-market.

Market snapshots

Belgium

Digitalisation of the healthcare system is a huge priority in Belgium, but language and regulatory complexity pose a challenge to exporters.

  • €5.9 billion national recovery and resilience plan
    • 27% allocated to digital initiatives

€40m digital healthcare funding allocated across:

  • Teleconsulting
  • E-prescribing platforms
  • Making existing eHealth applications more user-friendly

Medical priority areas:

  • Cardiac health
  • Diabetes
  • Oncology
  • Respiratory diseases
  • This is a fragmented market, subject to federal and regional oversight, and companies need to be ready to operate in three languages
  • Digital health products and services must be approved for reimbursement or are unlikely to be prescribed to patients
  • Belgium’s national recovery and resilience plan sets a key goal of making the national healthcare system more resilient, through modernisation and digitalisation
  • Its eHealth Roadmap sets out how that will happen across government, industry, service providers and patients
  • A planned Health Data Authority will make healthcare data available for research and product development
  • Broadly speaking, the Belgian population has good digital skills but it lags behind the neighbouring Netherlands, and is also further behind in digital transformation
Contact the Enterprise Ireland Belgium team

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France

Determined to lead the region in digital healthcare, France has introduced numerous eHealth initiatives, backed by substantial funding.

  • EU financing €40 billion of the overall €100 billion France Relance recovery plan
    • €7 billion going to health, with €2 billion in public and private funding specifically allocated to digital health initiatives
  • Digital prevention
  • Medical devices based on artificial intelligence
  • Innovative remote monitoring solutions
  • Imaging solutions
  • As part of France’s intense drive to lead in digital health, it has introduced new agencies for digital transformation of health, particularly the Agence du numérique en santé (ANS), along with a national health ID and a national eHealth platform for patients & healthcare professionals
  • It is also seeking to fast-track innovation in health products and medical devices, and has recently launched a national portal for eHealth innovation
  • A new agency, the Agence de l’innovation en santé (AIS) or Agency for Healthcare Innovation aims to simplify and unify the ecosystem, to make it easier for scientists, healthcare professionals, industry and investors to collaborate
  • Reimbursement is a huge issue in France – if your digital health product or service is not on the reimbursement list, it’s extremely difficult to gain traction
Contact the Enterprise Ireland France team

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Germany

With an approvals fast track in place, Germany is committed to digital health but the competitive local scene is hard to crack.

  • €25.6 billion in grants for recovery and resilience projects
    • €3 billion to digitalise hospitals
    • €814 million to modernise public healthcare offices, with vaccine development also a key focus
  • Sub-supply in medical devices (supplying device components), as Germany seeks to become a medical device hub
  • Optimising administration and operational efficiency to free up the time of medical staff to focus on clinical issues
  • People in Germany are generally insured by one of more than 100 public health insurers, with many also choosing to opt for private insurance
  • Large hospital chains such as Helios are key players
  • As elsewhere, reimbursement is crucial and products and services must be included on the Hilfsmittelliste – bear in mind the approvals process can be complicated
  • While the same GDPR principles apply in Germany as anywhere else in Europe, people there are particularly concerned about data privacy and need reassurance around any potential sharing of their data
  • Germany is advanced in digital terms
  • Wearables are extremely popular for health monitoring and there is a reimbursement fast track for what are known as DiGA (Digitale Gesundheitsanwendungen or digital health applications). International companies are encouraged to seek DiGA approvals
  • That said, given Germany’s size and how advanced the local scene is, those wishing to enter the market need to have an exceptional niche product and be extremely clear on its USP
Contact the Enterprise Ireland Germany team

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Italy

While it has lagged on the digital front, Italy is committed to modernising its healthcare system and is open to external innovation.

€191.6 billion in grants and loans for recovery and resilience

  • €15.6 billion to modernise and digitalise the Servizio Sanitario Nazionale (SSN), the public health system
    • €7 billion to develop proximity networks, infrastructures and telemedicine for local care
    • €8.63 billion for research, innovation and digitalisation

Digital connectivity is also a priority, with 12,279 healthcare facilities slated to be provided with 1GBPS connectivity by 2026

  • Italy continues to have lower digital literacy and lower investment in digital innovation than elsewhere
  • Digital skills among healthcare professionals are markedly low and only 38% of population knows about electronic health records
  • The recovery and resilience plan seeks to address this, with a core focus on modernising the healthcare system and building the digital skills of its workforce
  • With an aging population, Italy sees a significant need for digital health solutions that can support elder care
  • Large insurance companies such as Generali and Reale Mutua are already developing senior living complexes designed to incorporate digital healthcare
  • Italy is a fragmented market with considerable decentralised administration in healthcare and substantial regional differences in terms of digital maturity and healthcare ecosystems
  • Enterprise Ireland typically recommends that Irish companies enter the market by focusing on a single area in the north of the country, such as Milan
  • Across the board, public sector decision-making tends to be slower than in the private sector
Contact the Enterprise Ireland Italy team

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Netherlands

The Netherlands has not yet submitted a national recovery and resilience plan – the only EU member state not to do so.

With one of the most advanced healthcare systems in the world, the Netherlands has a strong focus on digital health innovation.

  • Cardiac health
  • Diabetes
  • Oncology
  • Respiratory diseases
  • Both individual and public sector spending on healthcare is much higher than the EU average and the Dutch spend the most of all EU countries on long-term care
  • All residents are mandated to buy insurance from private insurers as part of a government scheme
  • The Netherlands is one of the most advanced countries in the world in terms of both digital skills, and public and private digital transformation
  • It has many advanced solutions already in place, which can be a barrier to entry for international companies
  • Digital healthcare is a huge focus, with an eHealth at home incentive scheme in place and more flexible rules introduced around reimbursement for digital health apps and services
  • The Dutch government has built an extensive Care for Innovation online portal for eHealth innovators
  • Note there is already a strong collaborative ecosystem in the Netherlands between research institutes, healthcare institutes/professionals, organisations and public bodies
  • The government is also organising a countrywide Smart Health Relay event to educate healthcare providers on innovation in healthcare solutions from Jan 31 to Feb 25 2022
Contact the Enterprise Ireland Netherlands team

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Spain

While Spain is a fragmented market due to strong regional government, opportunity abounds as digital healthcare is less advanced than elsewhere.

  • €69.5 billion national recovery and resilience plan
    • 17% going to science, innovation and modernising and strengthening the national healthcare system – together one of 10 priority policies for NextGenEU funding in Spain
  • Advanced therapies for diabetes, neurodegenerative diseases, ALS and other conditions
  • Personalised precision medicine, incorporating genomic data
  • National Digital Health System with integrated database
  • Promoting primary healthcare through digital transformation
  • Within the overall Spanish plan is PERTE (Proyectos Estratégicos para la Recuperación y Transformación Económica or strategic projects for economic recovery and transformation) to which €1.469 billion in public/private funds is being devoted until the end of 2023)
  • While Spain is the second largest recipient of funds in the EU, not many projects have been properly specced out and made available for tender yet
  • With 17 autonomous communities and five official languages, Spain is not a market where a one-size-fits-all approach works
  • In fact, 55% of the national recovery and resilience funding will be managed by the Spanish state, with 45% being administered by regional authorities
  • Irish companies should begin by seeking a foothold in one area, such as Madrid, before trying to expand across the country. Note many regions have their own systems integrators
  • While targeting an often-fragmented public healthcare system can be challenging, recent reforms to speed up public sector contracting go some way to mitigating that
  • Almost everyone in Spain is covered by the national health system, while many also have private health insurance
  • Insurance companies such as Sanitas are particularly active in areas such as telemedicine
  • In 2019, health spending per capita in Spain was 15% lower than the EU average, while out-of-pocket payments for prescriptions and medical devices were much higher than average
Contact the Enterprise Ireland Spain team

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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.

Stay up to date with Enterprise Ireland UK on LinkedIn or get in touch here.

Net Zero webinar - How, When & Why

Net Zero UK – Why, When and How – Webinar

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The net zero challenge facing the UK will reform the ways in which business is done. To help Irish exporters understand how these changes will affect their sector and growth, Enterprise Ireland UK and UK net zero experts hosted the webinar Net Zero UK Overview, Why, When and How? 

The webinar examines

  • The major industry and policy drivers that will accelerate the UK economy towards net zero emissions

  • The impact of the UK’S Sixth Carbon Budget, Green Industrial Strategy and individual corporate net zero plans

  • Key sectoral updates

  • Enterprise Ireland’s organisational climate action strategy

  • Green initiatives such as the €10 million Climate Enterprise Action Fund

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

 

Net Zero UK – The UK Energy Market & the Net Zero Challenge – Webinar

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This webinar explores the major changes both underway and planned as the UK seeks to transition to a fully decarbonised energy system.

From the increasing role of renewable energy, to the decarbonisation of the heating and transport sectors, this Enterprise Ireland UK webinar invites experts and industry leaders to understand the timelines, technologies and innovation required for the UK energy system to achieve net zero.

Speakers:

  • Andrew Lever, Director of Programmes & Innovation, The Carbon Trust

  • Cian McLeavey Reville, Market Strategy Manager, National Grid ESO

  • Jon Slowe, Founding Director, Delta EE

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

      Aeriel shot of a large boat with containers in a port

      Incoterms – Defining the responsibilities between buyer and seller

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       Now that the UK is a third country, there is an extra administration burden on those who trade between the EU and the UK. Import and export declarations now have to be completed for all shipments, and duties may have to be paid. But who is responsible for carrying this extra burden and cost? Is it the buyer or the seller? This is where Incoterms come in.

      What are Incoterms?

      International commercial terms, or ‘Incoterms’ as they are often called, define where the responsibility lies between the buyer and the seller. Incoterms set rules for the delivery of goods between trading partners and are recognised globally. These rules help to clarify; who is responsible for the costs involved in the delivery of goods, such costs include insurance, freight/shipping and duty and who is responsible for the import/ export declarations and the associated filing costs.

       

      Negotiating Incoterms

      Companies should try to negotiate the best terms, ensuring that they strike the right balance of keeping buyers satisfied while also ensuring that they are not taking on any extra expenses which they cannot afford or that would make their sales unprofitable. It is important to consider how you will process any declarations and if you can afford to take on the extra costs associated with any of the methods available.

      When agreeing on Incoterms, it can often be the case that the buyer has the greatest say and may dictate the terms. Some companies may take on responsibility for the declarations and duties in order to avoid passing the burden on to their end customer especially where it could be easy to find an alternative supplier locally.

       

      Incoterms in Practice

      There are currently 11 categories of Incoterms but we will look at two to understand how they work in practice.

      EX Works (EXW) typically involves the buyer taking on the majority of the risk and costs involved. The seller agrees to have the goods available for collection at an agreed location. The buyer collects the goods and is responsible for both export and import declarations, shipping costs and the payment of duties.

      Take for example, a French car manufacturer selling cars to a UK car dealership, under the term ‘Ex Works Paris’. The car manufacturer (the seller) will have the goods available for collection at their factory in Paris. The UK dealership (the buyer) will collect these goods. They will bring them to the port, ensure that they have the correct export documentation submitted. They must pay for the shipping and insurance cost. When they reach the UK, they are responsible for having the correct import documentation completed and that duties are paid. Finally, the UK dealership must pay for the transport from the point of entry at the port to their premises.

      Delivered Duty Paid (DDP) is another term that is used regularly. Many large supermarket chains, for example, have stipulated to their suppliers that they must continue to supply goods under DDP terms post- Brexit. This term requires that the seller accepts all responsibility and costs for delivering the goods to the named place of destination. The seller must pay for both the export and import declarations along with taxes, duties, insurance and transport costs.

      Take for example, an Irish vegetable producer supplying a supermarket in the UK under the term ‘DDP Birmingham’. The Irish supplier will now have to submit an export declaration for the goods to leave the country. They will have to pay for transport costs and insurance to get the goods to the UK. In order for the goods to be allowed into the UK, the supplier must ensure that they have the correct import documentation and that all duties and taxes have been paid. Once the goods have been imported, the Irish supplier must deliver the goods to the premises of the supermarket (the buyer) in Birmingham.

      It is important that all companies are aware of the potential impact and extra cost that an Incoterm may have on their business before agreeing terms with their supplier or buyer.

      For companies that feel that their customers could easily find an alternative supplier, it is vital that they take the necessary steps to increase their competitive advantage. Through continued innovation and engagement with their UK customers, companies can ensure that they provide not only a superior product but also better quality service than that of their competitors, making customers less likely to switch.

      Further information on incoterms can be found on the International Chamber of Commerce’s website.

      Europe is our future

      Eurozone: Why trading in the Eurozone equals more profits and less risk for SMEs

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      As an exporting nation, Ireland really couldn’t be in a better place. We have a strong and enduring relationship with both the US and the UK markets, but we also are a pivotal part of the Eurozone, a huge market that is incredibly open to ambitious Irish companies. 

      Anne Lanigan, Regional Director, Eurozone, at Enterprise Ireland believes that the Eurozone represents a huge opportunity for Irish companies, particularly at this time of recovery.

       

      “The market in the Eurozone is five times that of the UK, yet, Irish industry exports from Enterprise Ireland supported companies are just 80% of what they are to the UK. That highlights the opportunity in Europe – we have really only just scratched the surface. It’s a huge market and it’s an easy market in terms of the lack of infrastructure barriers.” says Lanigan

      “In general, Europe is very open to working with Irish companies, not just because we’re Irish but also because we’re innovative, we’re very flexible and friendly to work with, and we are very good at customising our product to suit the customer – and that is very much valued in Europe. We’re pushing an open door in Europe. The challenge is in our own mindset.”

       

      Fewer overheads, more profit

      But the most attractive part of trading in the Eurozone is the fact that we are operating in the same currency. Investment and financial advisor John Power says that the positives of the single currency cannot be underestimated for SMEs. “When you bring it down to brass tacks, for SMEs, anything that requires intervention, eg if you have to manage currency, is an overhead. I think that some smaller companies often forget that managing a currency is an overhead, and removing an overhead is always going to have an immediate effect on your profits.”

      Language is often cited as a barrier to Irish companies trading in Europe, but the positives of dealing in the single currency override any such barriers. “Language is a barrier but we think that habit might play a part too,” says Anne. “Irish companies know how to deal with currency as we have traded with the UK and with the US for years, but even if you have the capability to deal with currency, it is still an overhead. It’s a good thing that our companies are able to deal with currency issues, as the UK, the US and other countries are very important markets for us, but Europe does offer a market that removes this overhead, so your profitability is higher when you’re dealing in the same currency as your customers and your suppliers.”

      There is a second reason why the single currency is invaluable for Irish SMEs – the volatility of exchange rates. “When Brexit was voted upon, we saw the volatility of sterling and the damage that it did to Irish companies,” explains John. “We saw massive margin erosion and margin uncertainty. We saw that margin uncertainty happened throughout the sales cycle, so the margin that a company thought they would get at the start of the sales cycle could be completely eroded by the end of it. It was then that we saw the real damage that currency volatility can do.

      “When you’re an SME working in international markets, the more risk you can eliminate, the better. One of those risks is currency and as an asset class, it’s probably the most volatile. If you can eliminate that, it has to be a huge positive because you’re eliminating a huge overhead and a risk at the same time.” explains Power

       

      Lack of barriers

      But there are plenty of other advantages to trading within the Eurozone. For one thing, the lack of barriers in the European Single Market means that trading is quick and straightforward. “Mainland Europe operates much like the States in terms of there’s no real land borders to trade between member countries,” says John. “Our traditional trading relationship with the UK and the US may have resulted in us partly ignoring the opportunities in the Eurozone, yet it’s possibly the nearest and the easiest trading relationship we have.

      “We are the only English-speaking nation in the EU, we have a great position on the edge of Europe and we share the single currency. This puts us at a unique trading advantage right now.”

      And, financial transactions are fast and easier too, John explains. “We are also members of SEPA, the Single Euro Payments Area, which significantly reduces transaction costs and the time it takes to make a payment. Along with the single currency, this make it far easier for small companies to forecast revenue, and to receive and make payments.”

      All these financial factors have the potential to transform profitability for Irish SMEs, at a time when revenues and profits are in danger of being squeezed. Luckily for us too, Europe welcomes products and solutions from Irish companies, and we have a great reputation in the most in-demand sectors right now.

      “We have companies excelling across a wide range of sectors,” says Anne. “The most important right now would be high-tech construction, ICT – which fits into every sector – agritech & agriculture engineering, automotive and life sciences. But broadly speaking, we have companies providing solutions for every sector in Europe.”

      Put simply, the Eurozone is a huge market full of opportunity for Ireland – and a market that actively welcoming Irish companies. Time, then, to think European.

       

      Enterprise Ireland and the Institute of International and European Affairs (IIEA) presented at three part series; Europe is our future. Watch the final webinar from Sept 24th below:

       

       

      4Oceans – Examining our shared ocean legacy

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      4Oceans

      Professor Poul Holm

       

      “Quote TBC”

      Professor Poul Holm (title TBC)

      Key Takeouts:

      • TBC

      Case Study: 4Oceans

      *Please note: There are two principal researchers and this banner may need to be redesigned to include both depending on the content of the interview.

       

      Main Copy, to be interspersed with pull quotes in blue:

      “Quote TBC,” says X.

      H2020 success stories banner link

      James Maloney of Enterprise Ireland_Centre_ presenting Paddy Casey of “Target Fertilisers” and Oliver Kiernan of “Brandon Bioscience”

      Innovation Arena Awards: collaboration & sustainability solutions are winners in 2021

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      An important area for innovation in Ireland is agritech. Not surprisingly for a country that produces some of the world’s best-quality meat, dairy products and produce, our industry is constantly coming up with excellent products to improve and optimise the agriculture sector. Many of these solutions are featured in the annual Innovation Arena Awards, held by Enterprise Ireland in conjunction with the Ploughing Championships.

      “We have an excellent reputation for product robust technologies that have been tested and proven in a farm setting,” says James Maloney, Senior Regional Development Executive

      “The science and R&D behind these really give us the edge, as well as our reputation as a high-quality food producer. With over 250,000 people employed in agriculture in Ireland, and the sector being such a huge beacon for regional development, it’s a very important area for us. It’s significant that most of the winners of this year’s awards are from different counties around Ireland, including Kerry, Kildare, Cork and Laois.”

       

      This year’s winners

      Now in its 11th year, the Innovation Arena Awards seek to celebrate and promote those entrepreneurs with a ground-breaking agri-related prototype or product. The awards traditionally take place at the Innovation Area during the Ploughing Championships; however, due to Covid-related restrictions, both the 2020 and the 2021 awards moved online, with shortlisted entrants pitching their idea to the panel of judges via a virtual platform.

      “We had approximately 57 entries this year, similar to last year, and nearly every applicant had something to do with sustainability or efficiency,” says James. “This came through in a few ways – for instance as management software or IoT products, where companies were highlighting areas where efficiency could be improved.

      “We also saw a lot of collaborations as well this year between traditional industry and other companies or universities. An excellent example of this is marine biotech company Brandon Bioscience in Tralee, who won the Sustainable Agriculture Award and was crowned Overall Winner. They teamed up with Target Fertiliser to develop a new fertiliser product using extracts from common brown seaweed. This product can reduce nitrogen use on farms by up to 20%. If you look at the Ag Climatise document and the Agriculture European Green Deal, we have to reduce our fertiliser use on the farms by 20%, so this product can deliver the same results thanks to the biostimulant properties. This is a European and a global issue, so the potential for this product is huge.”

       

      New awards

      The growth in veterinary innovation was reflected in a new award introduced this year, the Vet Technology Award, which recognises innovations made within healthcare in agriculture. This was won by EquiTrace, a product that reflects Ireland’s long and proud history as a leader in the equine industry. EquiTrace was also the winner of the Best Overall Start-Up Award.

      “EquiTrace is a little microchip scanner that provides accurate data on your horse, such as temperature, location, medicine dosages and time and the horse’s whole medical record – getting this sort of data  was a big issue with high-value horses in the past. But EquiTrace lets you run a scanner over the microchip’s location and all the data is then available through an app on your phone. Ireland is about third in the world for bloodstock sales, so a product like this is simply cementing our position as sector leaders.”

      The Innovation Arena also welcomed two new partners this year. Ifac partnered on the Best Newcomer Award, which went to Moonsyst International, a smart monitoring system that collects real time data from livestock to help farmers increase productivity, detect disease earlier and monitor heat, water intake and movement. UCD Lyons also partnered on the Agritech Award, which was presented to FodderBox in Cork, a novel hydroponic system that creates efficiency in fodder growth. As the winner of this award, FodderBox will also be taking part in the new AgTechUCD Agcelerator Programme in UCD, an intensive 12-week programme that includes business development workshops, investor readiness training, mentoring from experts and advisers, and introductions to VC and angel networks. AgTechUCD was funded through the Regional Enterprise Development Fund administered by Enterprise Ireland.

       

      Great publicity

      A big reason why the Innovation Arena Awards attracts so many entries is the publicity each product receives. “Traditionally we would have had about 300,000 people at the Ploughing Championships, many of whom are buyers,” says James. “Last year we had to go online because of the pandemic, but the companies still got a huge amount of exposure. For example, last year’s overall winners, Malone Farm Machinery in Mayo, got about 17,000 views on YouTube in the first week for their compact 16-bale trailer; their sales guys said their phone was off the hook the next morning with enquiries. When you’re coming to the Innovation Arena, you’re really announcing that you have a product ready.”

      All these winners are further underlining our strength in the world of agritech, a growing industry across Europe and the world – and an excellent way for Irish SMEs to flourish and prosper in the future.

       

      For more information on the Innovation Arena, and other supports available to ambitious agritech companies, please see www.enterprise-ireland.com

       

      Update on the AMP7 spending cycle and Green Webinar title: UK Water Sector, Recovery Investment Plans

      The UK Water Sector and the AMP7 spending cycle – Webinar

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      This webinar provides an update to the UK Water Sector and the AMP7 spending cycle and Green Recovery Investment Plans.

      Hosted by Enterprise Ireland and British Water the webinar discusses the key topics facing the sector with insights provide by industry experts:

      • Lee Horrocks, Director, LCH Executive

      • Lila Thompson, Chief Executive, British Water

      • Matt Lewis, Water Innovation Portfolio Manager, Severn Trent

      • Paul Gardner, Managing Director, Glanagua (UK)

      • Mike Froom, BD Director, TE Tech solutions (part of the Trant Group)

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

        Evolve UK – NHS procurements and frameworks webinar

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        This webinar forms part of the Evolve UK Webinar series and gives an overview of procurements in the NHS  and discusses key frameworks relating to Digital Health including G Cloud, GPIT, HSSF and SBS.

        Hosted by Marie-Claire Henry, Senior Market Adviser for Healthcare & Lifesciences with insights from Martin Bell, an expert in the UK healthcare sector.