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.

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:

       

       

      VRAI team

      VRAI: Promoting gender balance in leadership roles to gain an edge in the technology sector

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      Pioneering Irish businesses are rapidly discovering the business benefits of seeking gender balance in leadership roles, especially in sectors that are traditionally dominated by men. This was a key aim identified by Enterprise Ireland in its 2020 Women in Business strategy, and already the leadership gender balance strategy is paying off for those businesses that have worked hard to increase the number of women in senior management and leadership positions.

      Fast-growing tech firm VRAI, a leader in the field of data driven VR simulation training, specialising in training for “risky, remote and rare” activities such as working on off-shore wind turbines. Not surprisingly, this sector is overwhelmingly dominated by men, so achieving gender balance in any part of the business, much less in leadership roles, is quite a challenge.

      “Our sector is technology and we would be hiring software developers, data engineers, 3D artists etc,” explains VRAI co-founder and managing director, Pat O’Connor. “If I was doing straightforward hiring, for instance through LinkedIn, it would be about 80% male. It’s even more challenging as you get to higher level roles. The question is, what do you do about it? We’re trying to change things, and for a number of reasons. There’s the ethical reason, that it doesn’t seem fair or right; it seems that systemically women are not getting the same opportunities in what is a very exciting industry.

      “But there’s also a strategic reason – what we are trying to do is really complex, in an emerging market. One of the ways to mitigate that complexity is having diversity of mindset in the senior team. We’re already doing something that’s very hard, and it would be a lot harder trying to do it with a mono-mindset team. So we’re doing it for business reasons as well as ethical ones.”

       

      Deeds not words

      Pat agrees that more people are realising the importance of gender balance in business – the big question is though, are we doing enough on a practical level? “I think people are thinking about it, but what’s important are deeds, not just words, it’s about doing something to change the situation. Thanks to our own strategy, I feel that more people are engaging with us to learn about diversity on a business level, to see how they can do it in their own businesses.”

      Pat and the VRAI team have created a practical strategy to promote gender balance in every part of their business. “As a business, we have adopted a triple bottom line. In real terms, this means that as a director of the company, you have a responsibility not just for profit but also for people and the planet. We are striving to create a more meaningful workplace, where we’re achieving something else, not just earning profit. As part of this, we are committed to a gender-balanced workforce.

      “We set out to be a gender-balanced company and we set out a number of milestones. At VRAI 10 (when we had ten employees), we had gender parity.” says O’Connor.

      “As we got bigger though – we now have 18 employees – that figure has altered somewhat, we’re now 66-33 toward men. That has predominantly been driven by hiring more senior people, and we’ve found that there are even fewer women applying for these roles. Our aim is to get back to gender parity by VRAI 30.

      “Early on in the business, we put in a number of strategies at a junior level to achieve gender balance. We committed to a gender-balanced shortlist for every job, which means we take much longer to recruit but it’s the right thing to do. We also sponsored Ireland’s first-ever female-only tech apprenticeship – in fact our apprentice is coming to the end of her two years. In this scheme, our apprentice spends part of her work in college and part in the office with us.

      “Now we need to address the issue at a senior level. Our first strategy is to look at non-traditional hires. For instance, if someone has been working at a high level in an adjacent industry, they very likely can bring a lot of experience to this industry too. For example, one of the members of our management team came from a film background, working in production, but because she’s an outstanding performer, she’s able to make a huge contribution to the business.

      “Another way is by role modelling people, showing others that it’s possible to get into these roles, even if you’re not in technology now. And finally, it’s providing some sort of flexibility. It’s a big cost to introduce enhanced maternity benefits, for instance, but we felt it was the right thing to do both ethically and for the business.”

       

      Highlighting the issue

      At every opportunity, VRAI tries to highlight the issue, and is a great advocate of The Level Project, Enterprise Ireland’s campaign to highlight the benefits of gender balance in leadership and management teams.

      “We’re trying to highlight the issue, be advocates for gender balance, so we try to talk about it in the media, and we try to make sure we are using the right language in our recruitment ads, etc.

      “Part of The Level Project is the introduction of an online Action Planning Toolkit, which is brilliant because a lot of people want to do something but they mightn’t know where to start.” says O’Connor.

      “When you’re a start-up, you tend to prioritise the urgent; but giving yourself time to look at these fundamental issues is hugely important, and this toolkit takes you away from the fudgy, talking-about-it stage to doing something really practical to help the situation.”

       

      Start improving gender balance in your company with The Level Project Toolkit.

      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. 

        Middle East Aviation: Ready to soar once again in the post-pandemic future

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        The Covid-19 pandemic has hit few sectors harder than the aviation industry, with severe restrictions on travel and closed borders resulting in a dramatic decline in passenger volumes globally. Airports around the world have had their resilience tested to the limit as they faced the initial paralysis of the skies, followed by the ongoing waves of the pandemic. However, there is a glimmer of light on the horizon driven by the rollout of the global vaccination programme in the majority of countries, albeit at different levels of implementation.

         

        Predicted growth

        Despite the significantly curtailed demand globally and regionally due to Covid-19, the International Air Transport Association (IATA) predicts the Middle East will see a 4.4 percent growth in passenger journeys over the period through to 2039. “With the Gulf Cooperation Council (GCC) home to some of the most advanced airports in the world and often exceling in passenger service, they are on the front foot to ensure restored confidence in flying once again,” said Alan O’ Mahony, Market Advisor for the Middle East and North Africa (MENA) region at Enterprise Ireland.

        “Airport operators and airlines are monitoring the situation closely and continue to adapt to the evolving situation. They are now faced with the challenge of balancing additional health and safety requirements with providing a good passenger experience as they seek to restore confidence in air travel. Innovation and technology across the Middle East will play a key role in unlocking improvements for passenger experience and safety whilst also igniting the recovery for the sector. Ireland has forged a strong reputation for delivering world-leading innovative solutions that are used every day by the largest airlines in the world and across the wider aviation sector. We need this innovation now more than ever to power the industry’s recovery and Irish companies will continue to shape this new age for air travel.”

        Pandemic-era air travel

        Technology has advanced swiftly over the course of the pandemic in reaction to the ever-changing environment, and a new focus on health considerations in technology and process transformation has emerged.

        “One trend that will become more widespread is the adoption of contactless technology in order to minimise the spread of viruses and reduce interaction between staff and passengers throughout the entire journey,” explained Alan. “A good case in point is Irish company IO Systems which operates the automated baggage return tray systems in Dubai International Airport. The company has adapted its latest models to include blue light cleansing technology to ensure their trays are actively cleaned as they automatically return through the baggage system. Airports can ensure additional safety measures are applied whilst still ensuring a good passenger experience is delivered through the introduction of these type of innovative solutions.”

         

        Taking flight

        “The hot topic in the industry right now is the digital health certification to capture the completed vaccination process or Covid-19 status of people intending to fly,” said Alan. “Irish biometric identity assurance specialist Daon is leading the way by creating the world’s first widely adopted mobile health passport to help those eligible to travel to navigate the changing entry requirements associated with Covid-19. The company’s new VeriFLY app, which has already been adopted by American Airlines, British Airways, Iberia Airlines and Aer Lingus, is designed to offer peace of mind before travel by ensuring passengers meet the entry requirements of their destination.”

        VeriFLY provides digital health document verification, confirms eligibility, and allows people to combine necessary travel documents, such as Covid-19 test results, in one place, allowing travellers to ensure they are fully compliant with all the departure and arrival requirements before leaving home. Certified customers will be fast-tracked through the airport where specially designated desks are available for check in.

        “The ingenuity, ambition, and adaptability that Daon and their partners have demonstrated throughout the pandemic are making a significant contribution to restoring traveller confidence and ensuring a positive passenger experience. It’s just one example of how innovation from Ireland, one of the major travel tech hubs in the world, is playing a leading role in the recovery for the sector.”

         

        Advanced technologies

        Responses to Covid-19 have accelerated the adoption of digital technologies across almost all sectors, and it’s thought that many of these changes will have a lasting impact. “With the global smart airports market to top $22.6 billion (USD) by 2025, the requirement for advanced technologies – especially as part of the immediate recovery – will continue to be an important market for the vast array of Irish companies operating in the sector. We are likely to see new entrants into the airport space across technologies such as biometrics, robotics, cloud technologies and IoT.”

        “There is no doubt that the Covid-19 crisis has had a devastating impact on the air travel industry and the recovery for the industry is still some distance away. With that said, recent trends offer reasons for cautious optimism. While it’s certain that air travel will never look the same again, these innovative solutions will help to ensure international airline travel is, once more, cleared for take-off.”

         

        Evolve UK – Offshore Wind Industry webinar

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        This Offshore Wind industry webinar provides an update on:

        • CfD round 3 capacity auction

        • Information on the upcoming CfD round 4 auction

        • UK offshore wind project pipeline

        • Supply chain developments

        • Impact of Covid-19 on the offshore wind industry and its supply chain

        Conor Fahy, Enterprise Ireland

        Market Watch – A view from the Middle East, India and Africa

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        The Middle East is expected to return to business sooner than Africa and India with the tech industry being the first to recover.

        Key Takeaways

        • Companies need to closely monitor the changing business environment and be prepared to quickly pivot their offer or business model if the market demands.
        • Business is severely affected in the region even though the spread of the virus in Africa and India is weeks behind Europe.
        • Borders have been closed, international events cancelled, and most companies are looking to cut costs.
        • The Middle East is expected to return to business sooner than Africa and India with the tech industry being the first to recover.
        • Communication is vital for to maintain long term relationships.

        The global pandemic has indeed affected every corner of the world and according to Conor Fahy, Regional Director, Enterprise Ireland, India, the Middle East, and Africa is no different.

        “The area encompasses over 40% of the world population so lockdown and self-isolation presents many challenges,” says the regional director. “The situation in the Middle East is similar to Europe in timing and response and most companies are expecting a decrease in revenue and are looking to cut costs and consider cost containment and defer or pause investments.

        “The double whammy of an oil price war and Covid-19 will affect budgets and Dubai has introduced highly restrictive measures, including closing its airport, so there is a risk of a sharp increase in business defaults and liquidations in the travel and tourism industry. Also borders have closed across the region and major international events have been cancelled or delayed.

        “India and Africa are currently around three weeks behind in terms of cases and government response. But business is severely affected, while economic activity is suffering from the initial phases of lockdown. The medium-term impacts will be severe and combined with oil-price shock and reduced demand for commodities, the region is likely to tip into an economic contraction in 2020/21, in the absence of major fiscal stimulus.”

        There are eight Enterprise Ireland offices across the region which are helping Irish companies stay informed, connected and exporting. And Fahy says it’s crucial for people to avail of this support and keep communications lines open in order to survive the challenges.

        “We are providing in-depth customer engagement, virtual itineraries, bespoke buyer webinars and one-to-one advice and guidance,” he says. “Personal connection is vital to winning and retaining business so it’s essential to stay connected with existing customers. Be the trusted source of information: and proactively communicate with accurate market information and insights from your industry contacts, and from Enterprise Ireland’s Market Research Centre.”

        “When things get tough, the temptation is to become acutely focused on immediate problems but while these should be addressed, developing a strategy for recovery is just as vital. So extend your timeline assumptions and planning-against scenarios, even if it appears difficult. Now is the time to invest in strategic planning and to start thinking through decision criteria and conditions for return to business.”

        Many organisations are still dealing with immediate concerns around the availability of cash.

        While all sectors are being affected across the region, Tourism, Aviation, Construction, Industrial Manufacturing and Mining and Oil industries have been hardest hit but technology related businesses will be the first to make a recovery.

        “CFOs in the Middle East are expecting to get back to normal sooner rather than later; pausing or delaying investments instead of cancelling them altogether,” he says. “In fact, the majority expect to return to business as usual within three months if COVID-19 were to end today.

        “Investments in digital transformation, customer experience and cyber security are most likely to be protected as a result of Covid-19 and all indicators point to a technology-led recovery as AI is becoming pivotal in managing the huge amounts of data needed to deliver services and product.”

        While there are certainly challenges facing Irish exporters, Fahy says there are also some emerging opportunities, particularly for digital payments and cloud services.

        “The near collapse of many online grocery retail platforms is driving demand for process automation and intelligent self-service and Irish companies quickly recognize the changing market dynamics,” he says. “But while positivity may be in short supply, there is optimism in around returning to business and continuing to invest where it matters.

        “Business leaders need to invest time away from crisis management to show leadership and strategically look to future opportunities which will emerge when these economies rebound.”

        Conor Fahy is Enterprise Ireland’s Regional Director of the Middle East, India and Africa. To learn more about the steps companies can take to address the impact of Covid-19 visit our business supports page.