PIXAPP – Shedding light on PIC packaging

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“PIXAPP is more than just a project; like all Horizon support I look at it as seed funding to grow your activity.”

Professor Peter O’Brien, Director of PIXAPP Photonics Packaging Pilot Line Horizon 2020 open call project

Overview:

  • Tyndall National Institute in Cork is leading an international consortium that is establishing ‘best in class’ photonic integrated circuit (PIC) packaging technologies
  • The PIXAPP project is funded by the European Union’s Horizon 2020 research and innovation programme
  • The European Commission has recognised PIXAPP as a flagship pilot manufacturing capability in Europe.

Photonics is the future. In devices ranging from hand-held cardiovascular monitors to self-drive cars, photonic integrated circuits (PICs) are revolutionising technology, enabling significantly higher capacity and speed of data transmission.

Its huge potential to address socio-economic challenges in areas such as communications, healthcare and security, has led the European Commission to invest heavily in programmes to advance PIC technologies. But with most developments focusing on the PIC chips, the challenge now relates to packaging, that is, connecting the chips to the real world though optical fibres, micro-optics and electronic control devices.

To address the challenge, a €15.5m project, involving 18 partners and led by the Tyndall National Institute in Cork, has established the world’s first open access PIC assembly and packaging manufacturing line, PIXAPP.

“The assembly and packaging challenges are considerable and it’s hugely expensive for manufacturers. PIXAPP provides a single point of contact, the Gateway, at Tyndall, through which businesses can access expertise in industrial and research organisations across Europe to translate their requirements into the best packaging solution. It’s a major step forward to enable the conversion of R&D results into innovative products,” explains Professor Peter O’Brien, co-ordinator of the Horizon 2020-funded PIXAPP pilot line.

The importance of sustainability 

When PIXAPP started in 2016, the ability to package PICs was dispersed across several European companies and institutions, each of which could only do a few steps in the process.

“Our aim was to make a diversified, distributed pilot line, which meant coming up with a common language of design, materials and equipment standards that could seamlessly move across different countries.” says O’Brien.

With PIXAPP due to end in October 2021, the issue of sustainability is key to ensuring progress in the area of PIC packaging continues.

“One of the key things we had to show in our Horizon 2020 proposal was a sustainability plan. We can’t just walk away after four years. We’re now engaged with over 120 companies around the world and many of them are gearing up to do the whole packaging process themselves, working with the technology standards we’ve developed.

“Ultimately, that’s what success looks like for us, where we can step back and industry takes on the high volume packaging work. There are still risks involved for companies but we can help reduce those by sharing or advising on equipment and we can train their engineers, which is an important part of what we’re doing.”

O’Brien’s team has also secured funding from the Disruptive Technology Innovation Fund, which will help with regional sustainability.

“When we got the DTIF funding the Commission was delighted because that’s the kind of regional investment they want to see,” says O’Brien.

Insights for Horizon 2020 success 

Applying for Horizon 2020 support can be daunting but O’Brien has extensive experience and offers some insights.

The key to a successful proposal is addressing the call requirements, in terms of scientific excellence, impact from project results including dissemination and structure of the workplan. It is also important to ensure the proposal reads as one document, rather than a large number of small documents complied by partners into a single proposal. Ideally, the coordinator should write the full proposal, taking input from all partners. This will ensure the proposal has one voice, making it easy for reviewers to read, understand and enjoy.

 “Enterprise Ireland gave us support to write the proposal and it’s important to use their expertise as well,” says O’Brien.

The right partners are also central to success.

“You need to have partners that you trust and who trust you, so you have a shared vision, and you need to work with them well in advance; don’t form consortia based on a call. Our funding success is is high, and we like to work with the familiar partners but it’s also exciting to work with new partners who can bring new technologies and insights. Spending time out of the lab meeting partners, including new partners is important. Visits to Brussels to are also important to stay ahead of upcoming calls and as a central location or HQ to meet partners and future collaborators.”

Tyndall’ photonics packaging group is currently involved in 15 European projects and has recently participated in €19m project for a new Photonics Innovation Hub called Photon Hub Europe.

O’Brien also feels strongly that projects should not be seen in isolation.

“All our projects are strategically aligned so we’re leveraging capabilities from one project to another. A focus on your core technical capabilities is important. And it’s a continuous thing. You have to keep working on proposals, stay up to speed, don’t dip in and out.

“The big benefit of being involved in Horizon projects is the contacts networks and the relationships that you make. You should think of the funding as seed funding to grow your activity. I don’t like the word project, because that suggests it’s done when it’s done. I think the Commission likes to think that every project is seeding something else much bigger.”

For advice or further information about applying for Horizon 2020 support please contact HorizonSupport@enterprise-ireland.com or consult www.horizoneurope.ie

 

How Connemara Marble continued to innovate with support from the Sustaining Enterprise Fund

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“Thanks to the Sustaining Enterprise Fund, we are one step closer to recovery. In the meantime, we’re continuing to innovate. Enterprise Ireland genuinely gave us hope.”

Stephen Walsh, Managing Director, Connemara Marble

Key Takeouts

    • JC Walsh & Sons, Ltd. and Connemara Marble have been in business for 75 years and a partner of Enterprise Ireland for nearly as long. They specialise in tourism retail, religious goods, and marble jewelry sales.
    • The Covid-19 pandemic and world-wide lockdowns hit the majority of their sales very hard. As a result, Managing Director Stephen Walsh reached out to Enterprise Ireland and applied for the Sustaining Enterprise Fund.
    • The funding provided by Enterprise Ireland allowed Connemara Marble to reposition their business to focus on television and online sales, worldwide. They are back up to 50% capacity and foresee a steady recovery over the next year.

    Case Study: Connemara Marble

    JC Walsh & Sons, Ltd. has been in the tourism retail, religious goods, and jewellery business for 75 years. This third-generation family business owns and operates the oldest Connemara marble quarry in Ireland. They are also a longtime client of Enterprise Ireland. Managing Director Stephen Walsh remembers when his father joined a trade mission to Washington, D.C. in 1963. He stood in the Rose Garden at the White House with John F. Kennedy just months before he was assassinated. Connemara Marble has been a solid piece of the Irish business landscape for many years—and then Covid-19 happened.

     

    As a business heavily reliant on tourism, their major trading season begins on St. Patrick’s Day, March 17th, and continues throughout the summer. The Irish lockdown was implemented on March 12th, 2020.

    “For us, the timing of lockdown was terrible—every cent we had was tied up in stock,” says Managing Director Stephen Walsh. “We were looking forward to a big year of sales. We were ready to fly and suddenly the wind completely changed direction.”

    Travel bans meant tourists disappeared. Connemara Marble’s religious goods market is aimed at an older crowd, who were all cocooning, as recommended by health officials. Churches were closed, pilgrimages cancelled, and sales came to a halt. Their exports business suffered, too, as presidential museums, cathedrals, and other destinations in the US and UK were closed. All that was left was their online and television sales. This remaining revenue stream was encouraging, but Walsh recognised that their business was going to need outside help if they were to survive this global pandemic.

     

    A partnership with Enterprise Ireland

    “One of the first calls I made was to Enterprise Ireland,” Walsh recalls. “They came back with an immediate response.” He was extremely thankful for the quick, positive response and agreed he first step was for Connemara Marble to work with a finance business growth advisor. Following that report, Enterprise Ireland supported the company to prepare a sustainment plan for the struggling business. A consultant came up with a strategic plan forward, which Walsh says was absolutely crucial. After this phase, they were able to apply for the Sustaining Enterprise Fund.

     

    Walsh says, “Enterprise Ireland gave us support, encouragement, and belief. They were like the cavalry coming over the hill.”

    Since Connemara Marble had tied all of their capital up in stock for the year of sales that never came, receiving the Sustaining Enterprise Fund gave them a vital influx of cash to get the rest of the business up and running. They bought raw materials to facilitate the shift to online sales. They also put money back into web development and promotion of their online business.

     

    The future of Connemara Marble

    “The Sustaining Enterprise Fund gave us the cash to support our existing business and invest in new products,” says Walsh. “Most importantly, we’ll be able to sustain our business and stay above water until recovery comes.”

    Walsh says he does not see any prospect of recovering the tourism retail business until Summer 2021, at the earliest. Instead, they are concentrating on their partnership with the shopping channel, QVC. Normally, Walsh would appear live from their studios in Pennsylvania. Due to Covid-19, they have transitioned to Skype appearances. This gives the viewer a direct window into the seller’s home, which Walsh says seems to have been a game-changer. The response has been very positive and sales with QVC have doubled since 2019. “If this is what the viewer is responding to, we’ll stick with it,” says Walsh. “It’s been a pleasant surprise to see how the market has responded to this new way of doing things.”

    Today, Connemara Marble are running at about 50% capacity, which is in line with their strategic financial plan. Walsh says with this sort of turnover, they can survive this unexpected year. He acknowledges they still have a journey ahead of them, but says they are better situated than he first thought possible.

    Walsh says, “Thanks to the Sustaining Enterprise Fund we are one step closer to recovery. In the meantime, we’re continuing to innovate. Enterprise Ireland genuinely gave us hope.”

    His advice to other companies suffering due to fallout from the global pandemic? First, call Enterprise Ireland. Then, cut overheads and concentrate on the parts of your business that haven’t been negatively impacted by Covid-19. Look around corners, search for new opportunities, and never give up.

    Click here to learn more about applying for the SEF. Contact your Development Advisor or our Business Response Unit to find out more.

     

    Plenty to celebrate stateside this St Patrick’s Day

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    St Patrick’s Day offers an unrivalled opportunity to showcase Irish business innovation to a US audience.

    The traditional meeting between the Taoiseach and US President is taking place virtually this year, leveraging our important ties and connectivity with our trans-Atlantic neighbour more than ever.  

    The USA remains the world’s largest consumer market, a $22 trillion dollar economy. It grew by 4% in Q4 last year and early projections for 2021 indicate further growth of 3.2%, a strong performance for a developed economy.

    Increasingly Irish companies succeed here by recognising that the USA is no more one market than Europe is, and that to penetrate it they must go in state by state. California’s economy is, after all, approximately the same size as that of the UK. New York’s is approximately the same size as South Korea.

     

    The Pandemic Pivot

    The Covid-19 pandemic has had a significant impact, with unemployment currently at 6.9%, up from 3.5% prior to Covid, which was a 50-year low. Lockdowns vary by state but as a whole the US is a market where the pivot happened fast, and the return will too.

    One of the biggest trends we see is how major US multinationals, such as Facebook, Microsoft, and many others are embracing the lessons learned. They have ‘leaned in’ to the opportunities that remote working, accelerated technology adoption and virtual collaboration have presented.

    Interestingly, this has also led to a level of economic migration and mobility not seen in generations as more and more people also take advantage of operating remotely and move to less dense population centres.

    The crossing of the digital Rubicon has also led to accelerated growth in sectors that were once described as emerging, these include ecommerce, cybersecurity, and digital health. There has also been a marked increase in the demand for content driven by the rapid growth in usage and choice across stream platforms. These relatively sudden supply and demand shifts always result in direct and tangential opportunities, and threats.

    As people live more online, those providing back end solutions, such as data management (provision and support products and services) and security, are seeing potential for robust growth.

     

    Building Back Better

    Further bolstering the optimism for strong 2021 GDP growth is the economic stimulus plan put forth by President Biden, further supplemented by significant planned investment in infrastructure and the green economy. At time of writing the $1.9 Trillion stimulus plan has moved back to the US House of Representatives for final ratification, this is expected to provide significant economic stimulus across the US.

    Other sectors are of course challenged. International student numbers from the US to Ireland have fallen for obvious reasons. Consumer retail, for those that have not embraced ecommerce, is struggling, and other sectors that have historically relied on a tactile or physical element to the sales process, e.g. machinery, will naturally struggle more in a virtual environment.

    A big question affecting businesses, and unknown in terms of our ‘new normal’, is what airline travel will look like. Capacity is certainly not what it was pre-Covid and there are complex variables that impact this supply and demand dynamic, not least of which are staff and equipment availability. Thankfully we continue to be relatively well served on the trans-Atlantic route.

    Over the past 12 months Enterprise Ireland has also leaned in to supporting our clients to stabilise, reset and recover. Supports such as the Sustaining Enterprise Fund, Online Retail Scheme, Virtual Selling programme, Competitive Start, our many management training programmes and others have enabled companies not just to cope with the challenges of selling into the US and globally, but to compete for and capture the opportunities that now exist in our new normal.

     

    Virtual St Patrick’s Day Celebrations

    Enterprise Ireland is walking this walk too in our traditional St Patricks Day events, having taken the traditional week-long programme of events for St Patrick’s Day and working with our Team Ireland colleagues migrating it online. Where Team Ireland would normally have the Taoiseach, Ministers, and a programme of economic, political, social and cultural events from coast to coast and border to border, we have pivoted entirely and will instead be hosting a multi-faceted programme including a series of in-depth sectoral webinars.

    We are running high profile mainstream media and social campaigns this week too, to maximise the impact of St Patrick’s Day, raising the profile of Irish companies and of the Irish Advantage.

    None of us knows what the new normal will look like. We do know that it will not be a simple snapping back into the old ways. Over the past 12 months we have crossed the digital Rubicon. It is now up to all of us to embrace the digital opportunities on the other side. As Henry Ford said, “Whether you think you can, or whether you think you cannot, you are right”. We can.

     

    Join Enterprise Ireland USA for the ‘Ireland and the US: On Track to Getting Back’ virtual event on 16th March where senior business leaders from both sides of the Atlantic will discuss learnings from 2020, and powering growth in 2021. Register here.

     

    Large ship with containers in port

    Customs – Country of Origin

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    When it comes to customs, the country of origin of a product is critically important. And to all intents and purposes, the world is divided in three – EU member states and preferential and non-preferential countries.

     

    Preferential Countries

    Goods of EU origin travel freely within the EU, with no customs to deal with. Preferential countries are those with trade agreements with the EU, and all other countries fall into the non-preferential category.

    Exports to and from preferential countries are subject to the rules of the trade agreement. For Irish exporters, this means proving that the goods involved are of EU origin. Importers must establish that the goods are of preferential origin, i.e. that they came from the country with the trade agreement.

     

    Non-Preferential Countries

    Normal WTO rules apply to non-preferential countries. This means first establishing the origin of the goods in question and then looking up the EU TARIC site to get the code for the goods and finding the relevant tariffs and other rules such as anti-dumping or quota restrictions which might apply.

    Origin is essentially the economic nationality of the goods being traded. In some cases, this is easily established. These are instances where products are what is known as wholly obtained in a country. This means they have been entirely produced in that country without any goods from other countries being utilised in the end product.

     

    Value-Added Rule

    This would normally apply to fruit or vegetable products or basic cuts of meat. Spanish strawberries or Dutch tomatoes would be examples.

    Things get a little more complicated with prepared consumer foods like frozen pizzas or other ready meal products like lasagne. The increasingly complex and globalised supply chains involved in the manufacture of such products can call into doubt their country of origin. So, a pizza manufactured in the EU, but with many of its ingredients sourced from countries outside the EU, could present an interesting case.

    Origin in these cases is determined by where what is known as substantial transformation has taken place. This is decided by the value-added rule which, broadly speaking, means where most value has been added. In the case of the Irish manufactured pizza or ready meal, if the value of the finished product is significantly greater than the sum of its third country ingredients, it is deemed to be of EU origin.

     

    Certificates of Origin

    Certificates of Origin are required for goods being exported to countries with trade agreements with the EU. Certificates may also be required for other countries depending on the destination e.g. certain Arabic countries. Many large exporting companies have an Approved Exporter for Simplified Origin Procedure status with Revenue, and this allows them to self-certify their exports to countries with EU preferential origin status.

    Companies without this Approved Exporter status have to apply for a EUR 1 certificate from Revenue for each consignment of goods to preferential countries. For newer preferential agreements with Japan and Canada, EU exporters can simply register in the REX system, without applying to Revenue for Approved Exporter status. They can then declare their exports to Japan and Canada as having EU preferential origin by means of a statement on origin placed on an invoice or other commercial document.

    Where the goods are destined for a non-preferential country, a Certificate of Origin can be obtained through Chambers Ireland or one of its members.

    For further information, go to a customs broker for advice or to your local chamber of commerce. If you are still in doubt after that, you will find further information on the Origin section of Revenue’s website or contact the Revenue Commissioner’s Origin and Valuation Unit.

    Market Watch Construction

    Market Watch – Construction – Industry Bulletin no.3

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    The third global market bulletin for the construction sector features updates from Enterprise Ireland’s overseas market advisors across four continents.

    As the sector unlocks and construction sites reopen, this report provides a snapshot summary of insights for companies working in the international construction industry.

    Graduate Stories – The opportunity to be part of a professional & dynamic team

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    Currently in year two with Enterprise Ireland’s National Graduate Programme, Stephen McLoughlin describes his experience of working across the Brexit division and Covid-19 response unit.

    Coming from a background in political science, I always had an interest in doing something related to government but I didn’t want to be a civil servant. Enterprise Ireland is unique in that you’re engaging with the private sector, so you’re at the cusp of where the public and the private sector meets – and that really appealed to me because you see both sides and you feel like you’re flying the Irish flag for Irish companies and really making an impact.

     

    Applying for the Graduate Programme

    I became interested in Enterprise Ireland after talking to some executives at the open day in the Helix while studying for a Masters in DCU in Business Management. The application process is very intense – if you’re in college, you have to set that time aside to apply for graduate programmes because they do take a lot of time to complete. It’s important to do your homework and I’d highly recommend attending the recruitment days so you can meet previous graduates working in the organisations and get an insight into their roles.

    The assessment centre part of the application process is tough. It’s worth putting the time into researching what happens in an assessment centre and how it works – there are some valuable insights to learn, such as not being the most dominant person in the room, allowing everyone their chance to speak and using your limited time effectively. The experience does give you an insight into what the role entails and the challenges that it brings.

    After the assessment centre, there’s an interview, and a lot of preparation should go into this, especially if you haven’t done much work in competency-based interviews. Look into what skillsets you have that would align with the type of competencies Enterprise Ireland  is looking for. All the information is there online so it’s just a matter of putting the time in to research. The interview is intense but it’s a chance to demonstrate what sort of person you are and what you can bring to the role.

    About ten of us commenced the programme in August 2019. We were trained with the international grads, and it was a great chance to meet everyone and begin to network – which is central to our roles.

     

    Working on the Brexit response

    I was assigned to the Brexit unit – as I had studied political science in my primary degree, this was a dream for me. The Brexit Zone had a dedicated space at International Markets Week in 2019, so I was really thrown into the deep end from the very start – which was a really great experience as I think I met three or four government ministers in my second week and it gave me a huge insight into the advisory piece provided to client companies regarding the challenges posed by Brexit.

    “The role gave me the opportunity to develop and enhance my skills as a communicator.” says Stephen McLoughlin

    Networking takes a bit of work to master, specifically how to make the most of a conversation and optimise the time you have with a client or a buyer. It’s the professional world and everyone just wants to get the work done as quickly and as efficiently as possible.

    We had a lot of Brexit events, so in my first couple of weeks I was able to meet a lot of people all around the country in sectors that might be affected by Brexit. Internal networking is really important too. It’s a really big organisation and you’ll struggle during the first few weeks to meet everyone but they really encourage you to get up from your desk and get involved in projects or events – sports, charity fundraisers and so on.

    My role changed dramatically in 2020 when most of the Brexit team became part of the Covid-19 response team. What was really interesting is that our Brexit insights prepared us for this, as a lot of the products and services put into place to help companies during Brexit had parallels with those developed to help clients through the Covid crisis. Advising businesses where to go for support through government agencies has been a big challenge and tough at times but it’s meaningful, practical work that really makes a difference.

    If you are interested in joining the Enterprise Ireland Graduate Programmes, check your eligibility here: National Programme /  International Programme.

    Supporting Regional Development Critical To Future Jobs Growth

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    Resilience is a word we became used to in 2020 and it is an apt term to describe how Irish business responded to the dual challenges of the Covid-19 pandemic and the end of the Brexit transition period.

    For thousands of businesses across Ireland, and their staff, it has been a tough, challenging year marked by disruption and uncertainty. But what has been remarkable is how Irish businesses have responded to the impact of Covid-19 and Brexit.

    At Enterprise Ireland we work closely with the Irish manufacturing, export and internationally traded services sector.  We invest in established companies and start-ups, we assist companies to begin exporting or expand into new markets and we back research and development projects creating future jobs.

    This week we launched our annual review for 2020.  The good news is that the companies we are proud to support employ more than 220,000 in Ireland.  Despite the challenges faced in last year, nearly 16,500 new jobs were created, closely mirroring the 2019 outturn.

    However, job losses were significantly higher than in previous years, resulting in a net reduction of 872 jobs across the companies we support.

    There is no sugar coating the fact that it was a tough year for business.  However, behind these statistics are individual stories of companies taking brave decisions to change their business model, reimagine their product offering and find new ways of doing business and connecting with customers to trade through the impact of Covid-19 and Brexit.

    Enterprise Ireland has worked with these companies throughout the year to ensure viable companies have the liquidity, supports and advice they need to trade, and importantly, to sustain jobs.

    Enterprise Ireland supported companies have a key role in the Irish economy.  65% of employment is outside the Dublin region and these indigenous Irish companies, many of which are world leaders in their field, are critical to delivering balanced regional economic development.

    Powering the Regions is Enterprise Ireland’s strategy for regional development.  It outlines specific plans for each region in the country, drawing on their existing enterprise base, their connections with third level institutions and their unique potential for growth.

    The strategy is backed significant funding.  This time last year more than €40m was allocated, in a competitive call, to 26 projects fostering regional entrepreneurship and job creation.

    These included the Future Mobility Campus Ireland, based in Clare, which explores the potential of autonomous, connected and electric vehicles, UCDNova’s Ag Tech innovation centre in Kildare and the Clermont Hub in Wicklow which focuses on content creation and draws on the region’s established film and audio/visual track record.  The 26 projects were supported under the Regional Enterprise Development Fund, which has seen €100m invested in similar projects since 2017.

    Given the potential impact of Brexit, particularly in the Border region, 11 similar projects designed to cluster expertise and innovation were supported with €17m in support under the Border Enterprise Development Fund in 2020.

    These were strategic initiatives, closely linked to government regional policy, with a medium to long-term focus on supporting regional enterprise.

    However, due to Covid-19, Enterprise Ireland moved last year to provide more agile interventions to regional businesses assist them to reset and recover.

    Ensuring that viable companies had the access to finance was an important necessity.  Through the government-backed ‘Sustaining Enterprise Scheme’ Enterprise Ireland allocated €124m last year to support more than 400 companies employing more than 10,000 people.  The majority of this funding went to regionally based companies.

    Similarly, €8.2m in funding for 95 enterprise centres, which are critical to the start-up ecosystem and future job growth regionally, was made available in September.

    Retail business across Ireland also benefitted from the Online Retail Scheme which saw 330 retailers allocated €11.8m in funding to enhance their online offering, reach new customers and increase sales.

    Through a mix of strategic funding aimed at long-term enterprise development and more agile funding supports Enterprise Ireland has helped to sustain jobs throughout Ireland in 2020.  We’ve also supported those sectors, such as cleantech, construction and life sciences which continued to grow and create jobs last year.

    The pandemic will have lasting effects including how we work and where we work.  Many of these long-term changes can complement strong local and regional economies.  A key element of the Powering The Regions strategy was the potential of remote working and co-working hubs that Enterprise Ireland is committed to developing with our partners.  That potential has been accelerated by the changing work patterns evidenced in the past year. Now, more than ever, having a strategic approach to enterprise development is vital, and Enterprise Ireland looks forward to the role it can play as we recover and build for the future.

    By Mark Christal, Manager, Regions and Entrepreneurship at Enterprise Ireland.

    New African Dawn: Launch of the Continental Free Trade Agreement

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    A new year usually brings with it hope, optimism and new resolutions. The first two weeks of 2021 have however been fraught with the on-going pandemic, Britain’s exit from the EU and increased protectionism and populism around the globe. In marked contrast with this tone, one continent is pushing forward with hope, optimism and new resolutions.

    The first of January 2021 saw the launch of the African Continental Free Trade Area (AfCFTA). This milestone agreement strives for greater trade cooperation on the continent. The aim is to bring together 1.3 billion people in a $3.4-trillion economic bloc that will be the largest free trade area since the establishment of the World Trade Organization. This agreement comes into force, with support from 54 of the 55 countries recognised by the African Union (Eritrea being the sole exception) is a hugely positive move.

    The Agreement establishing the AfCFTA was signed in March 2018 and of the 54 Member States of the African Union that have signed, 30 countries have deposited their instruments of ratification with the Chairperson of the African Union Commission.

    The main objectives of the AfCFTA are to create a single market for goods and services, facilitate the movement of persons, promote industrial development and sustainable and inclusive socio-economic growth, and resolve the issue of multiple memberships, in accordance with the African Union’s Agenda 2063. The agreement lays a solid foundation for the establishment of a Continental Common Market.

    AfCFTA presents a significant opportunity to boost intra-regional trade as well as increase Africa’s negotiating position on the international stage. Intra-African trade has always been relatively low. In 2019, only 15% of Africa’s $560-billion worth of imports came from the continent – compare this with a figure of 68% in the European Union (UNCTAD).

    In addition, many African nations have struggled to develop better-enabling environments for attracting investment and it should follow that this agreement will help to make the continent an increasingly attractive location for foreign companies seeking to penetrate its huge market potential.

    This landmark agreement is off the starting block but there is much to be negotiated to reach the desired goal of #OneAfricanMarket.

    Under AfCFTA trading, with an aim to eliminate export tariffs on 97% of goods traded on the continent, tariffs on various commodities where rules of origin have been agreed will be drastically reduced and businesses of all sizes will have access to a much bigger market than they used to before. Non-tariff barriers (NTBs) to trade will also be addressed and a mechanism for reporting of NTBs has been put in place (www.tradebarriers.africa).

    In parallel to the AfCFTA, the African Union has also introduced the Protocol on Free Movement of Persons.

    Though it will be years before the AfCFTA is fully implemented, the significant steps that have been taken to get the agreement to this point should not be underestimated, particularly in the current difficult global environment. Increasing prosperity on the African continent will ensure that it continues to be a continent of great interest to Irish exporters.

    Enterprise Ireland has been assisting Irish companies to navigate the Sub-Saharan African market through our office in Johannesburg, along with an established and growing network of industry specialists across the continent. Contact us to learn more about the opportunities for your business in this growing export destination.

    Nicola Kelly, Senior Market Advisor, Middle East, Africa & India

    SPEEDIER breaking down barriers to energy efficiency for SMEs

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    “Horizon funding enables you to carry out high quality, robust research that can influence policy, and policy can change behaviour”

    Dr Pádraig Lyons, Head of Group, International Energy Research Centre, and coordinator of SPEEDIER

    Case Study: SPEEDIER

    The European Union’s Energy Efficiency Directive has set an ambitious target of a 32.5% improvement in energy efficiency by 2030. With small and medium sized enterprises (SMEs) responsible for approximately 13% of Europe’s total energy demand, their contribution to achieving the target is vital.

    However, little of this potential has so far been realised with studies estimating that only 25% of SMEs in Europe have undertaken an energy audit. The reasons cited range from lack of time, resource, in-house expertise and finance, to the low priority given to energy efficiency compared to other business needs.

    To address these barriers the SPEEDIER (SME Program for Energy Efficiency Through Delivery and Implementation of EneRgy Audits) project was established. Funded by Horizon 2020 and led by the International Energy Research Centre (IERC) in Cork, the project developed an integrated approach to energy management for SMEs, providing information, capacity building, energy auditing, financing, implementation of energy efficiency solutions and monitoring of impacts.

    Dr Pádraig Lyons, Head of Group, IERC, and coordinator of SPEEDIER, explains how it differs from other energy efficiency supports.

    “At IERC we’ve done a number of projects in this space and are learning about the challenges that SMEs are facing. One of these is the difficulty getting finance for decarbonization projects. So we came up with the SPEEDIER concept which is essentially a self-funding approach to becoming energy efficient.” says Lyons

    The model developed is a novel funding mechanism, which builds from no-cost energy conservation activities up to higher cost activities, using the savings from each to finance the next level of investment.

    “This approach creates a revolving energy efficiency fund for the business, removing any barriers relating to lack of finance, and providing an external source of expertise via the SPEEDIER consultants,” says Lyons.

     

    The advantages of collaboration

    SPEEDIER involved nine partners across four countries – Ireland, Spain, Italy and Romania – testing the concept in different contexts from hotels to office blocks and across a range of manufacturers.

    “One of the benefits of this kind of European-wide collaboration is the information we could gather across a broad range of SME types and a wide geographical area.” 

    “That has enabled us to draw conclusions about how we can move SPEEDIER forward post project and how it should be tailored to different sectors and countries”, says Lyons.

    Although the project was hampered by the Covid pandemic, which restricted the implementation of the SPEEDIER service across businesses and meant some targets set at the start of the project had to be revised, Lyons considers that it was a success.

    “It’s less about ticking boxes to say we involved this number of companies or trained that number of consultants and more about generating interest in the concept, validating and evaluating the concept and getting companies on a path. And we’re seeing a lot of interest in the SPEEDIER approach.”

     

    Focus on the learning

    As coordinator of SPEEDIER, Lyons, who took over the reins mid project, is realistic about the administration that comes with involvement in a Horizon project.

    “There is a lot of reporting required and as project coordinators that fell to us at IERC. It’s challenging but that’s the reality of being part of a project with this level of funding. And of course, as the coordinator you have ultimate responsibility for the project so that can be an added pressure.

    “Having said that, the substantial funding that’s available from Horizon projects enables you to carry out robust research where the findings are backed up with strong evidence. That kind of research can influence policy, and policy can change behaviour. That’s really important. I believe that there is no use completing a research project and then writing a report that just sits on a shelf. Turning results into information that somebody can actually use is the vital part of any research project.

    “Horizon 2020, and now Horizon Europe, offer great opportunities to carry out high quality research if you make the time and space to get involved. But you need to stay focused on the learning as well as the deliverables and objectives set out at the start of the project. It’s the learning that can be commercialized, drive policy change and create the changes that are needed.”

    Horizon Europe has a budget of over  €95 billion and one of its core aims is to tackle climate change in line with the European Green Deal and boost to the EU’s competitiveness and growth through excellent research, innovation and collaboration. Enterprise Ireland provides a number of supports for institutions and businesses who are interested in participating in a Horizon Europe project.

    Learn more about SPEEDIER, or for information on applying for support from Horizon Europe, the successor programme to Horizon 2020, please contact HorizonSupport@enterprise-ireland.com or consult www.horizoneurope.ie.

     

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    Conor O’Donovan: Brexit disruption can be offset by Look for Local campaign

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    Thousands of Irish companies have been availing of the opportunity to promote their business through the Look for Local campaign, which was launched in November by the Local Enterprise Offices

    Backed by the Department of Enterprise, Trade and Employment in partnership with Enterprise Ireland and the local authorities, the Look for Local campaign aims to highlight small Irish businesses in every sector, asking individuals to support businesses in their locality when looking for goods or services.

    “The campaign is tapping into the deep well of goodwill towards local businesses that exists in communities throughout Ireland,” says Conor O’Donovan, head of global marketing and corporate communications at Enterprise Ireland. “Local companies across a range of sectors are featured on the Local Enterprise LookforLocal website.

    “It is supported by national and local advertising and marketing,” he adds.

    “We want to try and encourage more consumers and businesses to look local if they require goods or services in the period ahead.”

    He advises any small business which wants to be featured on the LookforLocal website to contact their local LEO to make arrangements.

    “More than 4,200 businesses are benefiting from the campaign which has generated excellent traction online after just a few weeks.”

    The campaign is of particular relevance to companies which have pivoted and changed their business models during the year in response to the disruption caused by the Covid-19 pandemic. Since January, the LEOs have approved over 11,000 Trading Online Vouchers for small Irish businesses, helping them to establish an online trading presence, or adapt it, under the National Digital Strategy.

    In addition, 330 retailers have been approved for €11.8m in funding as part of the government’s Covid-19 Online Retail Scheme, which is administered by Enterprise Ireland. The scheme is targeted at retailers which are looking to enhance their current online presence.

    An online presence is also increasingly important for exporters. “A trend we’ve been seeing is that international buyers will search online before making contact with a potential supplier. It’s essential that Irish exporters have strong online visibility.”

    Many small local exporting companies will now have to contend with the additional disruption caused by Brexit.

    A key Brexit mitigation strategy for exporting firms is market diversification and the Enterprise Ireland Irish Advantage website offers them a shop window to buyers across the world to aid them in its execution.

    Exporters and potential exporters interested in being promoted on the Irish Advantage website should contact Enterprise Ireland or their Local Enterprise Office,” he said.

    O’Donovan also advises businesses to visit Enterprise Ireland’s Prepare for Brexit website.

    “The site is full of resources and information to help businesses get ready for Brexit.

    “On January 1 the UK will become a third country as far as trade with the EU is concerned. The Brexit Readiness Checker will take you through all the essential steps to take, including customs,” he says.

    “Revenue has estimated that customs declarations will increase from 1.2 million a year at present to 20 million a year. There has been a massive uptick in visits to the site in recent months. The message is getting through that being better-informed means being better prepared and that makes for better outcomes.”

    Irish companies are, by and large, retaining their existing overseas contracts, but new contracts are down this year as a result of Covid-19.

    “Exporters can’t jump on planes or trains or go to trade shows, so we are facilitating them to connect with new buyers online and encouraging them to avail of funding, advisory and innovation supports available from both Enterprise Ireland and LEOs”, he said.

    And there is a high degree of awareness of those supports. “That was one of the very encouraging findings of some recent Department of Finance research,” says O’Donovan.

    “Almost 90pc of SMEs are aware of Enterprise Ireland supports and initiatives while over 80pc are aware of what’s available from the LEOs. That awareness will be of critical importance as we strive to help Irish companies become more innovative, competitive and diversified in order to succeed and take advantage of the opportunities that will arise in the coming year and beyond.”

    Evolve UK – Guide to Social Value in Procurement

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    Social Value in UK Public Sector tenders

    Social Value can be described as the additional value created in the delivery of a contract to a community, beyond the monetary value of the contract itself. While Social Value has been a feature of UK public procurement over the last decade, it has grown in prominence since introduction of the Procurement Policy Note (PPN) 06/20 in September 2020. This note requires councils to include a weighting of at least 10% to social value in tenders. Therefore, it is necessary for any Irish company dealing with the UK public sector to consider social value and how they can create value in a wider community.

    This Enterprise Ireland publication has been developed in collaboration with Steve Oldbury, Founder & Director, Bidwriting.com to help companies to meet the social value requirements of UK tenders and improve their capability to win business with UK public sector bodies.

    This guide includes:

    • The Principles of Social Value

    • Why Social Value is so important to society

    • The importance of Social Value when tendering for work

    • Assessing Social Value and the National TOMs Framework

    • Examples of Social Value Questions

    • Actions required by companies to respond effectively to Social Value

     

     

     

    Why Export title

    Export Journey: Step 1 – Why Export?

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    Why Export title - image of woman packing a box

    In a post-Covid world access to international markets, buyers, distributors and information is now at the fingertips of Irish SMEs thanks to increased digitalisation.

    When looking towards new markets, it is important to consider the potential benefits of exporting for your company such as;

    1. Diversification of market and reduced vunerability

    A well considered diversification plan can minimise a dependency on the domestic market and the potential exposure to domestic downturn.

    2. Increased revenue and scale

    Exporting opens channels to exponentially expand the home market and identify new markets to take advantage of globally. A larger market base delivers economies of scale, enabling you to maximise your resources.

    3. Improved profitability

    Your ongoing domestic operation should cover business-as-usual fixed costs, either directly or via other types of business financing, which should, in turn, facilitate a faster growth in your export profits.

    4. Best practice and knowledge

    Accessing global markets will provide additional benefits to an exporter, aside from increased revenues such as new ways of doing business, increased awareness of global best practice, cultural and international competitiveness, that could also bring benefits to your market offering in Ireland.

    5. Domestic competitiveness

    Considering your company’s export potential will increase its resilience against potential competition within the domestic market.