Transcript Document

Association of Geography Teachers of Ireland
Annual Conference
Cork 3rd October
Attracting investment to
Regional Locations
An IDA Perspective
Ray O’Connor
Regional Manager
South-West
Agenda
 Overview of IDA Ireland - The Business of IDA
 Regional Development
 Challenges/Opportunities for Gateways & Hubs
The Business of IDA Ireland
IDA - overview
 A state agency with its own board
 Attracts FDI to develop economy
 Supports existing clients to develop additional functions
 Builds relationships with inward investors
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Quantity & Quality of investments
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Regional spread
New business areas
 Employs 295 people
FÁS
National Training Agency
IDA Offices Worldwide
UK
Ireland
Chicago
California
Germany
France
New York
Atlanta
Korea
Japan
China
Taiwan
Australia
Paths to Winning Projects
Call to
IDA
Industry
Groups
www.
‘Business
Cold
Calls
Market
Research
Ireland’
Conferences
Consultants
LEADS
Referrals
Presentations/Visits to Ireland /Win Project
Case Study – Lessons learned
• Established in 1985 - World’s largest biotechnology company
• After reviewing 25 countries, they chose Cork for their $1 billion+
investment in 2006.
• Key to this win was how Ireland got it together – land,
infrastructure, utilities and facilities, professional services, skills
and expertise
• A Team Ireland response with speed and agility:
• Cork County Council
• National Roads Authority, ESB, Bord Gais, etc
• UCC, CIT and other educational institutions
• Professional engineering and construction firms
• Existing companies – their experience as reference
20+ yrs to win investment….. 1 yr. for postponement.
Intense int. competition – building relationships
Investor Criteria must be exceeded
Investor Decisions are made for commercial reasons
Work needed to generate a project
1000 Calls
100 meetings
10 Site Visits
2 to 3 projects
National IDA Job Gains and Losses
1997 - 2006
25000
20000
15000
10000
Gains
Losses
Net
5000
0
-5000
-10000
-15000
-20000
1997
1998
1999
2000
2001
2002
2003
Source: Forfas Annual Employment Surveys
2004
2005
2006
Full time Employment
Ireland: Total Employment by Sector in IDA supported companies
2002-2006
60000
Pharmaceuticals &
healthcare
50000
Information &
Communications
Technologies (ICT)
Engineering
40000
30000
Miscellaneous Industry
20000
International & Financial
Services
10000
0
2002
2003
2004
2005
2006
Year
Source: IDA Annual Report , 2006 / Forfas Employment Survey
Business Mega-Trends
Future Business in Ireland
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Globalisation, technology and digital media.
Growth of Asia and integration with West
Growth of Eastern Europe
Demographic constraints in Europe
Growth of services – now 50% of world trade
Higher value, more knowledge-intensive and capital-intensive
Business transformation & new business models - ‘virtual’
Increasing speed and shorter life cycles e.g. Dell
High value manufacturing still critically important
Investment will be more mobile than ever & ‘weightless’ – less
rooted and potentially footloose
• More ‘open’ and overseas R&D by multinationals
Business Areas … and Activities
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Manufacturing
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Technical & customer
support
ICT:
• Software
• Semiconductors
• Systems
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Business processes
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e-procurement
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Financial services
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Sales & Marketing
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International services:
• Digital media
• and many others
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Supply chain management
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Research & Development
New Areas
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Brand & IP management
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Headquarters
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Life Sciences:
• Pharma & biopharma
• Medical technologies
Ireland of the Future
- the ‘Knowledge Economy’
• Higher value activities & higher skills
• More sophisticated and complex jobs
• New patterns of investment
• More continuous learning and re-learning
• Technology and science more pervasive
• Premium on flexibility and responsiveness
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High Margin
Niche Markets
High Skills
Low Labour Content
Customised
Knowledge Intensive
Specialised Skills
Emerging/Growth
After sales
service Intensive
Regional Development
Attracting FDI to Ireland’s Regions
Regional Development
 Growing recognition in Europe that major city-regions play a
central role in developing modern knowledge based economies
 Knowledge based sectors are heavily concentrated in or near the
centres of major cities
 We compete with city-regions elsewhere with populations of 1
million or more
 Ireland’s regions are small in comparison
 We must think and act regionally, not locally
 Critical mass is essential and gateways are key
 IDA Ireland is aligned to the NSS with an embedded regional
Structure
High income,
Technology leaders
Mid Cost
Manufacturing
Low cost manufacturing
and services - and more!
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The oil
rich
What FDI Investors Seek in a location
• The right people and skills – in abundance
• The right infrastructure:
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access, energy, telecoms
environment and waste
property solutions
business services
attractive lifestyle and amenities
clusters of similar businesses
frequently an urban environment
• The right attitude
DOES THE LOCATION GIVE ME
CONFIDENCE THAT I WILL BE
SUCCESSFUL ?
Where would you choose to holiday in Ireland ?
Where would you choose to holiday in Ireland ?
Components of a strong tourism centre
VISITOR ATTRACTIONS
FESTIVALS & EVENTS
EVENING ENTERTAINMENT
ACCOMMODATION
RESTAURANTS & PUBS
VISITOR SERVICES
INFRASTRUCTURE
Regional Challenges
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Companies will select those
locations that enable their
business to succeed in
international markets
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Delivering the right infrastructure is
critical in attracting FDI to the regions:
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access, energy, telecoms
environment and waste
property solutions and business services
attractive lifestyle and amenities
clusters of similar businesses
RPG’s
• As is
• The right skills
• The right attitude
IDA Projects 2007 - Trend towards urban
locations
Pramerica
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Successful delivery of projects in
Gateways and hubs.
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Some Gateways and hubs are more
attractive to investors for investment.
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Scale & Critical mass are important
distinguishing factors.
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Daiwa
Securities
System Label
There are considerable challenges for
hubs and smaller locations
Teleflex
KTI
Fidelity
IBM
Gateway
Hub
Int Fin Services
ICT
Pharma
Med Tech
Globally Traded Business
ACI Worldwide
Nortel
Integra
Merrill Lynch
Intel
Wyeth
Paragon
Gala Inc
Gilead
AR Europe
Rovsing A/S
Sanmina SCI
DeCare
VMware
Allen Vanguard GSK
Genzyme
Equifax Inc.
Apex
Gilead
Blizzard
IBM
Solarwinds
Source: IDA Website
Marketing Gateways & Hubs
Cork’s Development – reaching critical mass
Clusters of similar and supporting businesses
Professional Business Services
(accountants, engineers, lawyers and others)
• 27 Airlines
• 850 flights weekly
• 50+ international destinations
and .…
Quality of Life
Sell the region – not the town
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Population : 10,241
Workforce: 4,624
3rd level colleges: 0
Airports: 0
Reference Companies: Kostal;
ITW Hi-Cone; TR Southern
Fastners, etc..
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Population: 689,012 within 60km.
Workforce: 307,426 within 60km.
3rd level colleges: 5 colleges with
access to 49,000 students.
Airports: 3 international airports
Reference Companies: approx 200
including Dell, Apple, EMC, Pfizer,
GSK; Bank of New York, Kostal,
McAfee, Kerry Group, Fexco, etc..
Innovative Property Solutions
Kerry Technology Park, Tralee
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Vision for Seamless Integration of Education
and Enterprise
Shares 113 acre campus with ITT (Park area 52
acres)
Joint KTP/ITT Physical Masterplan and
Development Guidelines
26,000 sq ft InnovationWorks Building
24,000 InnovationWorks 2 building
16 companies on-site
Over 300 people employed
Active local Management
Shannon Development Investment to date:
€10m
Kerry Innovation Centre/ Campus Enterprise
Determination !
West Cork Technology Park, Clonakilty
300,000 sq. ft. facility
Custom built office space from 2000 sq. ft. to 80,000 sq.
ft.
Ireland’s Gateways & Hubs
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Look at your offering in the context of Investors’ Criteria / Requirements.
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Look at the type of investment projects Ireland is attracting / targeting.
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Take a regional approach - not a local town/hub focus.
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Some Gateways have greater opportunities to attract FDI over Hubs.
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Hubs can feed into and out of Gateways.
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Are there other economic opportunities – tourism, indigenous companies,
retail, decentralisation, green initiatives, food & agriculture, commuter
towns, etc..
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Always focus on positive – no matter what. e.g. Digital, Motorola
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It is a team effort to develop & market a location – investors can Google !
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There are exceptions to everything ! – Commitment or Connection
Ireland continues to win investment in 2008
Thank You
Ray O’Connor
Regional Manager
South-West
IDA Ireland
Support slides
Challenges/Opportunities for Mallow
• Companies will select those locations that enable their
business to succeed in international markets
• How does Mallow link into the successful Gateway of Cork?
• Creating the distinctive pull factor for Mallow
• ….what does it offer over other locations.
• ….what does it offer to different sectors, sub sectors
• Regional Aid Guidelines phasing out for South Area
• Branding and identity
Access to Skills: Mallow Hub
LIT: 4,800
UL: 13,000
Tralee IT: 3,200
WIT: 10,700
Mallow
UCC: 16,100
CIT: 12,000
Total 3rd level enrolment:
59,800
0
20
40
60
80
100
Kilometres
*approx enrolment for 2006
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Mallow Key Selling Points:
Infrastructure and Connectivity
Local Commitment to Business:
-Mallow Chamber / Mallow Town Council
Hub location
linking two Gateway towns of Limerick and Cork with
access to People, Graduates and reference companies
Road & Rail Infrastructure Investment:
Property Solutions
Mallow West - €500m worth of
development on the 400-acre site.
Located on Atlantic Corridor - access to the primary route
between Cork and Limerick/Shannon Continued Investment
in Road & Rail
Broadband Connectivity:
-fibre duct on rail line adjacent to town
Broadband capability provides the necessary
connectivity for potential investors in Mallow
Air Access:
-Three airports within 1hr 40 min of Mallow
-Cork International Airport only 40 min from Mallow,
servicing 850 weekly flights to 50 destinations by 27 airlines
Mallow Connectivity:
Access to Airports
Dublin Airport
Shannon Airport
Kerry Airport
Waterford Airport
Mallow
Cork Airport
40 min / 40 km
Regional Airport
International Airport
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40
60
80
100
Kilometres
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Mallow:
The need to create and communicate Mallow’s offering as an
investment location with the best of both worlds:
Well-located business area,
has access to the critical mass of:
More Cost Competitive
Skills Availability
(lower property costs, lower cost of
living: house prices, childcare)
(,UCC,CIT, ITT, LIT. UL.. etc)
Access
(40 min from Cork Int. Airport)
Infrastructure
(Road Network, Rail connection,
Broadband Connectivity)
Experience of Existing Companies
(Regional focus)
The advantages of NOT being
a city location:
PLUS
Less Traffic Congestion
Arguably Better Quality of Life
(better work life balance)
Greater Staff Retention Rates
The Opportunity to be one of the
Employers of Choice in a locality