Ireland’s Jobs Minister Richard Bruton, TD, has called on multinational companies based in Ireland to include more Irish companies in their global supply chains. Just a 5pc increase in spending locally by multinationals would generate €500m in the local economy in Ireland in 2013.
In parallel to this, Bruton urged Irish firms to show more gumption and endeavour to fit into global supply chains of multinationals – a market worth €80bn worldwide every year.
The call came as part of a series of initiatives driven by a new Enterprise Ireland/IDA Ireland senior management team established by Bruton under the Action Plan for Jobs 2012.
At a briefing at IDA client company Accenture’s Dublin city offices, Bruton revealed Accenture has engaged with more than 17 Irish companies and a number have won new contracts from this engagement, including biometric identity management software company Daon.
Other local firms that fit into the Accenture supply chain ecosystem include Brite:Bill, which is focused on the global post office marketplace, and DataHug, which leverages analytics to help firms manage relationships better.
Multinational companies in Ireland source about €80bn in goods and services globally, of which €11bn comes from Irish businesses.
The joint IDA/Enterprise Ireland team is targeting an increase in this figure in 2013 by identifying 65 multinationals that offer potential for Irish companies and through increased participation by Enterprise Ireland clients on inward investment itineraries by IDA companies.
The plan, which exemplifies the kind of joined-up thinking needed in State bodies, includes programmes to support Enterprise Ireland client companies’ capabilities to meet the needs of global corporations.
Other areas targeted include attracting international start-ups and mentoring local firms.
Bruton said: “Targeting increased links between these multinationals and our innovative Irish exporting companies can achieve two important goals: firstly, it will open major opportunities for Irish companies to secure more business and exports as part of an €80bn global supply chain; and, secondly, it will help us attract more investment from multinationals, by making the capabilities of Irish companies into a key selling point.
“Even a 5pc increase in global sourcing by multinationals from Irish companies would lead to annual benefits of more than €500m for Irish companies. I am determined to ensure that ambitious targets are set and met for this important initiative.
“In the short time that this joint team has been in existence, it has made significant progress. Necessary research has been done, plans have been concluded and initial actions have been developed, with major benefits to both Irish companies and multinationals as we can see here today in Accenture.
“The next step now is to build on this progress with a comprehensive strategy to target growth, which is what will happen in 2013. I commend all at IDA, Enterprise Ireland and participating companies for their major work on this initiative. I am determined to ensure that in 2013 and subsequent years we will see increasing benefits for the Irish economy and in particular, the jobs and growth we need,” Bruton said.
IDA CEO Barry O’Leary said IDA client companies currently work with a range of Irish suppliers and sub-suppliers across a range of sectors.
“IDA Ireland is committed to acting as an intermediary to create even more of these sourcing partnerships in the future. We are confident that as foreign direct investment grows in Ireland, there will be significant opportunities to increase sourcing relationships between foreign multinationals and indigenous supply companies,” O’Leary said.
Enterprise Ireland CEO Frank Ryan added: “Enterprise Ireland would encourage more multinational companies as we have seen here today with Accenture, to engage with world-class Irish companies and get a sense of the fantastic products and services that can add significant value to their operations both here and globally.”
Supply chain management image via Shutterstock
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