At its landmark CEO conference in the Convention Centre Dublin, IBEC, the group that represents Irish business, today published a new report that found that Ireland is rapidly regaining the competitiveness it lost during the boom years. The IBEC conference will hear directly from some of Ireland’s largest businesses about how they have steered through the economic storm and have positioned their companies to deliver growth for Ireland.
IBEC director general Danny McCoy said: "Business has reacted swiftly and decisively to the recession. Our costs are coming into line internationally, our exporters are increasing global market share and unemployment appears to have levelled off. We are now positioned for recovery and equipped to create balanced and sustainable growth.
The IBEC report (see attached pdf), entitled 'Productivity and adjustment', shows that as pay rates and other costs have been reduced, Irish firms are again performing strongly in international markets. The IBEC study found that major restructuring programmes and a stronger focus on productivity in businesses has delivered average annual unit cost reductions of 7%. The unit costs over which firms have the most control, overheads and labour, have fallen by much more than this. In order to remain viable, businesses are doing more with less. Output per worker in industry increased by 12% in 2009 and by an estimated 16% in 2010. It is through this combination of cost reduction and productivity growth that Ireland is making significant strides in regaining its lost competitiveness.
"Irish companies and their employees moved quickly and with a flexibility unmatched in any other country. We now have evidence that this is working and business is gaining the necessary momentum to drive economic growth. We have a lot more to do to restore our economic fortunes, but significant progress has been made," said Mr McCoy.
"Companies have shown how, when faced with a crisis, they can adapt, change and quickly return to growth. The government must demonstrate the same approach when it comes to getting the public finances back on track.
"Ireland has the potential for balanced and sustainable growth, based on a newly competitive foundation. We need to start emphasising this fact much more vocally to inspire the confidence needed to make it happen," he concluded.
The conference will hear how business managers have adjusted to the changed economic climate, but it will also focus on future growth. New business concepts, emerging markets, and building on the synergies of Ireland’s enterprise base will be core topics. The conference is entitled Now, back to business; more details are available at www.ibec.ie/ceoconference and speeches will be available in the Newsroom section of the IBEC website.
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