on Wednesday 8 November 2006

I am delighted to have been invited here this morning to address to your Annual Conference. Your theme this year, ‘Selling in Competitive Markets’ is a timely one.

As all of you are aware, Ireland as one of the most open economies in Europe, has become highly integrated into the world economy through trade and investment. Consequently, the global economic environment significantly influences our economic conditions. However, I am pleased to say that in the face of increasing global competition, the Irish economy has proved to be highly resilient.

The Irish economy continues to grow at a rate faster than most of our EU neighbours with no significant weakening across a range of key economic variables. The legacy of the last decade will be substantial, not least of which has been our final transition to that of fully-developed economy. While many factors have contributed to the success of our economy, thus positioning Ireland in the premier league of developed economies, it is imperative that we raise our game to maintain this new status in the highly competitive environment of winning sales in global markets.

I know that Irish companies are working very hard to maintain and win new market share despite the difficulties they face. Irish companies performed very strongly in 2005 with Enterprise Ireland client companies, for example, achieving a €1.275 billion increase in new international sales – an increase of 7.2% on 2004. Total exports in 2005 stood at €10.7 billion. 

In fact, strong export growth has taken place in 2005 across a number of key indigenous industry sectors including Software and Financial Services, Life Sciences and Food, with the Construction and Engineering sectors maintaining impressive performance levels.

A key factor in Ireland’s economic success has been a sustained and significant expansion in exports. Export growth accounts for approximately half of Ireland’s annual economic growth, and has resulted in a ‘number one rate of export growth ranking’ for Ireland in the industrialised world. Ireland’s high ranking has been a consistent feature of the 1990s, during which its rate of export growth outpaced world trade growth by a factor of three.

This is testament to the national strategy of winning sales in international markets.

They illustrate the vital importance of continuing to focus strongly on developing and embedding an export propensity and capability in new firms at the start-up phase, and in existing firms not currently exporting, to get them to export for the first time.

The evolution of the global economy offers potentially boundless opportunities for indigenous companies. Exploiting the prospects offered by newer export markets such as Central and Eastern Europe and by countries such as China, will be critical for future growth. However, the growth of these regions has also resulted in increased competitive pressures for indigenous companies in sustaining and growing market share.

Consequently, as a country with a relatively limited domestic market for both products and services, it is imperative that Irish companies who wish to expand continue to seek opportunities to grow through increased internationalisation activities.

Ambitious companies will need to strive to win contracts and market position in existing and new markets internationally. Embracing international trade and harnessing the extensive opportunities in world markets is the key to Ireland’s continued expansionary economic performance.

Irish exporters operate in a very different environment from that of even a decade ago. They are no longer confined to selling into English speaking markets or markets largely chosen on the basis of geographic proximity and convenience. Irish companies now operate in a broad range of culturally diverse markets. This means they must develop the marketing and sales capabilities to deal with these markets.

The ability of Irish firms to successfully market and sell overseas is critical. The substantial investment of private and public funding in capital, human resources, innovation, and technology will go unrewarded if Irish companies cannot successfully sell their products in overseas markets. Consequently, formal sales & marketing strategies, which focus on the identification and creation of competitive advantage, will be a source of significant benefits for Irish companies.

Achieving and sustaining competitiveness is crucial if Irish companies are to win sales in highly competitive global markets. Likewise, developing Management and International Sales Capabilities are vital if Irish companies are to compete successfully in the international marketplace. Companies need world-class management teams with strong international sales capabilities. In response to this, Enterprise Ireland last year formulated a new ‘International Selling Programme’ . The key areas of focus include management skills, sales and marketing skills and, technology and innovation skills. I would encourage all eligible companies to avail of this programme.

Government policy, as reflected in Enterprise Ireland’s strategy, recognises that the internationalisation of Irish firms is essential for the establishment of Irish global players.

It is imperative that companies of all sizes increase export activity, investments and presence abroad. Delivering quality sales and partnering opportunities for Irish companies in key sectors and markets remains a priority.

The Government has been working hard to drive these issues forward with the assistance of Enterprise Ireland. Through its network of 34 international offices, including the recent office openings in both Canada and India, Enterprise Ireland assists companies create and implement successful strategies for market entry, development and growth. Services provided include arranging access to international buyers and increasing the number of in-market trade promotion activities. Companies are also assisted to develop awareness, knowledge and understanding of markets and to build the marketing capabilities to fully exploit the opportunities available in overseas markets.

I hope these thoughts that I have shared with you will be of use in your deliberations today. I would like to conclude by thanking you for inviting me to speak to you this morning and I wish you all a most successful conference.

ENDS

TC 257