Exports by Enterprise Ireland backed companies reached a record level last year, the agency said, with growth across all sectors.
The organisation said total exports were €27.29 billion in 2021, the highest level recorded and a 12 per cent rise year on year. Exports were up across all territories, with the euro zone recording a 10 per cent increase to just over €6 billion. The market now accounts for 22 per cent of all exports.
There was also a record level of investment in research and development, with EI-backed companies spending €1.36 billion over the year.
Despite the ongoing uncertainty caused by Brexit, exports to the UK were up 15 per cent to €8.43 billion, with the market continuing to account for almost a third of export trade. North America also remains a large market, at 18 per cent of total exports. It saw growth of 14 per cent over the year to a total of €4.87 billion.
Growth was seen in almost all economic sectors. Food exports were up 6 per cent, to reach €12.91 billion or almost half of exports by EI-backed companies. Construction increased exports by 24 per cent to €2.89 billion, while consumer retail exports rose by 13 per cent to €1.09 billion. Digital technology firms saw exports rise by more than a fifth to a value of €1.53 billion.
“These exceptionally strong export results follow on from the record number of net new jobs created in companies supported by Enterprise Ireland last year,” said Leo Clancy, Enterprise Ireland chief executive. “There has been positive growth across most sectors and regions, and Enterprise Ireland clients contributed €31 billion to the domestic economy last year in employment and in purchases of materials and services.
“While the UK remains our largest trading partner it is good to see that our strategy to grow exports in other key markets, especially the euro zone, continues to pay dividends.”
The momentum has continued in the first six months of 2022, with EI backed companies signing 561 new overseas contracts, 85 per cent of which are outside the UK, and 93 companies entering new markets. A total of 199 new overseas presences were established.
The results were welcomed by the Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar.
“It is quite remarkable that despite the headwinds we faced last year, not least the realisation of Brexit and the continuing effects of the pandemic, Irish business managed to have a record year for exports. Behind these figures today are thousands of jobs in every county in the country,” he said.
However, Enterprise Ireland said exporters were facing challenges, including energy costs and continuing supply chain issues. A lack of experienced staff has also been flagged by companies as being a significant issue facing their firms over the next three years.
Mr Clancy said elevated shipping costs are also continuing to have an impact on Irish exporters trying to bring goods to market.
“It’s more expensive for sure,” he said. “We are finding capacity but it is harder to find, both into and out of the country.”
Mr Clancy said that in the post-Brexit landscape, new direct shipping routes from Irish ports like Rosslare, Cork and Dublin to continental Europe, avoiding the so-called UK “landbridge”, have been “hugely positive” for EI companies doing business in Europe.
“We’ve heard from our clients that when they’re speaking to buyers across continental Europe, that the buyers are asking them to prove that they have a non-UK route for their goods in order to get into Europe. If we hadn’t had those new direct routes, we’d have been in trouble, I would say,” he said.
