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Irish Times
4 days ago
- Business
- Irish Times
EI's new CEO must think big to help domestic businesses scale to create next ‘Kerry Group or Smurfit'
It's all change at Enterprise Ireland . On Friday, it appointed Jenny Melia as its chief executive and one of her key tasks will be to implement its new five-year strategy, which has just been put into effect. A lot has changed since EI's last three-year plan, not least the return to the White House of Donald Trump and his threat to impose tariffs and other measures on the rest of the world. Suddenly, our pharma exports and the financial spin off they yield, are under major threat, along with billions in corporate tax revenues from Big Tech firms, which fund many of our essential day-to-day services. On Wednesday, EI chairman Michael Carey and interim CEO Kevin Sherry gave a presentation on the new strategy in Tokyo to 100-plus Irish business leaders who had travelled to the country as part of the EY Entrepreneur of the Year programme's CEO retreat. READ MORE 'It has an underlying ambition to ensure that indigenous Irish businesses, Irish exporting companies and international trading companies... that those businesses become the primary driving force of the Irish economy to provide a counterbalance for the great success of FDI [foreign direct investment] and the great work that the IDA do,' Carey said. Scaling is a potential 'game changer', he said, adding that the ambition is to establish a large fund (a mix of State resources and private sector money) that would allow it write larger cheques for companies with the ambition to become 'the next Kerry Group or Smurfit'. That step change in funding is a big gap in the system at the moment. EI's ambition is to seed the next generation of Irish multinationals. According to Carey, EI is the largest private equity investor in Europe, a fact previously unknown to Cantillon. Now is the time to build on that expertise. As an entrepreneur himself, Carey should be well placed to help EI deliver on its new strategy. When appointed in 2023, he was the first EI chairman to have been a client of the agency, and his biscuit manufacturer East Coast Bakehouse is itself trying to scale into markets outside Ireland.
Irish Times
28-05-2025
- Automotive
- Irish Times
Ford Chief Lisa Brankin on accelerating the switch to EVs
New electric vehicle sales here dipped last year by 24% when compared to 2023, further making a mockery of the government's target of 1 million EVs on Irish roads by 2030. A reduction in the SEAI grant and gaps in charging infrastructure fed into consumer uncertainty when it comes to making the switch from petrol and diesel vehicles. But that trend looks to be reversing this year, something that Lisa Brankin, chairman and managing director of Ford UK & Ireland, will be keen to see accelerate. She joined host Cliff Taylor in studio to discuss the challenges of going electric, her plans for the company's future, and the launch of Ford Power Promise across Ford's range of electric cars in Ireland. READ MORE Also on this week's episode of Inside Business, AIB's Economic Outlook Report for May highlights how global uncertainty and an escalation in trade tariffs could lead to a slowdown in global and Irish growth in 2025 and 2026. That said, the report also points out that the Irish economy has built up a certain level of resilience to withstand a potential trade shock in the short term. AIB Chief Economist David McNamara went through the risk US tariffs and future US tax policy pose, and the outlook for 2025 and 2026. Produced by John Casey and Suzanne Brennan with JJ Vernon on sound.
Irish Times
28-05-2025
- Business
- Irish Times
Retail sales increase as consumers enjoy real wage hike
The volume of retail sales rose by 1.1 per cent in April as consumers spent more in department stores, on books and newspapers, and on furniture. On an annual basis, sales volumes were 3 per cent higher, the latest figures from the Central Statistics Office (CSO) show. However, when volatile car sales are excluded, the volume of retail sales fell by 0.1 per cent in the month and increased by just 1.1 per cent in the year. The domestic Irish economy is expected to grow at 2-3 per cent this year primarily on back of an increase in real wages (with nominal wages outstripping inflation) and an associated increase in consumer spending. The CSO figures showed the largest monthly volume increases in April were recorded in department stores (+6.4 per cent), books, newspapers and stationery (+2 per cent), furniture and lighting (+1.5 per cent), food, beverages and tobacco (+1.3 per cent) and bars (+0.3 per cent). READ MORE The largest monthly volume decreases were recorded in clothing, footwear and textiles (-1.4 per cent), other retail sales (-1.1 per cent), and electrical goods (-1.1 per cent). The CSO said the proportion of retail sales transacted online was 5 per cent in April. However these figures only cover Irish-registered retailers and exclude transactions on Amazon, the biggest online retailer.
Irish Times
27-05-2025
- Business
- Irish Times
Average weekly earnings of Irish workers surpass €1,000 for first time
Average weekly earnings in the Irish economy have surpassed €1,000 for the first time. Central Statistics Office (CSO) data showed average earnings across all sectors rose (on annual basis) by 5.6 per cent to €1,026 in the first quarter. 'Average earnings in the economy continue to increase year-on-year, surpassing €1,000 for the first time in the series (in 2008),' the CSO's Louise Egan said. 'This is driven by a number of factors, including a stable job vacancy rate for the past 18 months, as well as annual employment growth of 3.3 per cent as reported in the latest CSO Labour Force Survey,' she said. READ MORE Average hourly earnings rose at a rate of 5.9 per cent, increasing from €29.96 to €31.72. The elevated levels of wage growth come as workers seek real wage catch-up after the previous period of inflation. But European Central Bank (ECB) policymakers remain concerned about inflation linked to wage demands in the services sector. 'We're at a critically low level of housing stock' for buyers and renters Listen | 33:06 The job vacancy rate, which measures job vacancies on the last working day of the quarter, was 1.3 per cent, slightly higher than the 1.2 per cent recorded at both the end of the first and last quarters in 2024. The CSO data showed average weekly earnings rose across 12 out of 13 sectors in the year to the first quarter. The largest annual percentage was 8 per cent in the arts, entertainment, recreation and other service activities sector, followed by an increase of 7.9 per cen in the professional, scientific and technical activities sector. [ Delay in minimum wage could lead to industrial action, unions warn Opens in new window ] Information and communication workers were the highest paid workers in the State, earning on average €1,839.67 per week, up 4 per cent year on year, followed by employees in the financial insurance and real estate sector who earned on average €1,565.37 per week, up 2.8 per cent. Workers in the accommodation and food services sector were the lowest paid earning on average €436.10, down 1.2 per cent annually. However, the latter figure reflects the high level of part-time staff in the sector.
Irish Times
23-05-2025
- Business
- Irish Times
Brace yourself for a summer economic wobble as Trump ups ante with new tariff threat
Things had settled a bit since the fuss of Donald Trump 's so-called liberation day in early April, when the threat of imminent tariff hikes cast a cloud over the economic outlook. The US president's subsequent reversals had even raised some hopes that the worst might be avoided, in terms of the impact of foreign direct investment. But it has been clear over the past few weeks that a deal between the United States and the European Union on trade would not be easily reached. Trump wants the EU to make unilateral concessions to avoid higher tariffs. Remember additional tariffs of 10 per cent on EU imports have already been introduced by Trump and 20 per cent tariffs are threatened. The EU, quite rightly, wants a mutual negotiation where the US rows back on the tariffs already introduced in return for concessions from Brussels. Trump's latest threat of 50 per cent tariffs from June 1st on imports from the EU , announced on Friday, is clearly a negotiating tactic to try to break the logjam. But no one knows how this will play out. And it will only up the uncertainty already spreading through the Irish economy. Under the bonnet of the economy clear signs of nervousness and caution have already been starting to appear. The latest Trump volley – also threatening Apple , one of Ireland's big taxpayers – will seriously add to the nerves. READ MORE There are few signs of this yet in Ireland's real economic data. It is too early for that. But there is enough evidence at the coalface of the economy to conclude that the uncertainty is now having a real economic impact. And this is set to continue, as Trump's tariff threats hit the headlines again. The US president's credibility in making such wild threats is seriously in question. He has already been forced to pull back on tariff plans by the reaction in the financial markets. You would have to reckon that tariffs of 50 per cent on the EU may never be imposed – or at worst be there for a short period. However, the threat of significantly higher tariffs on Irish exports to the US is back on the table. Businesses understandably do not know whether they are coming or going. And they will react accordingly. As this plays out, the economic wobble already under way in the Irish economy will become more evident over the summer. Already the first signs are there. Businesses are slow to commit to long-term capital investment plans – this is most obvious in sectors directly in the tariff firing line, such as pharma , but also applies more generally. A lot of new inward investment is on hold – and so are projects in sectors across the economy, as nervousness trickles down. In the property market, starter homes continue to sell like hot cakes, but a number of sources point to a slowing at the top end of the housing market. Asking prices are being trimmed, there are fewer viewings and houses are slower to sell. Data from the CSO this week showed a small monthly fall in property prices in Dublin in March. The outlook for prices may remain underpinned by lack of supply, but the higher end of the market is worth watching. Areas of the recruitment market are slowing. This year's graduates in many disciplines will have less choice as big US tech employers reduce their intake. Giants such as Microsoft , Meta and Accenture have announced global lay-offs in recent months – AI is one driver of this – and so are likely to take in fewer graduates this year. The latest CSO figures for the jobs market show that, up to March, overall employment in Ireland was holding up remarkably well. Skills shortages remain in many areas. But it would be a surprise if there was not some significant cooling in the jobs market over the balance of the year. It is pointless trying to game plan how this will work out. But it is hard to see the uncertainty lifting quickly This silent slowdown is spreading. A key driver is nervousness among higher-paid employees in sectors such as tech and pharma and also the professional services sector that relies on these firms. Lifestyles – including property purchases – which are funded not only by salaries but also bonuses and options will come under pressure. The top end of the property market – both for house purchases and rental – has been driven in large part by the extraordinary income created from high salaries and share options in tech and related sectors. Now this sector has come off the boil. In turn, the headlines influence wider consumer confidence – as shown by recent surveys sponsored by the credit unions which take the household pulse. The latest assessment of current economic indicators from the Economic and Social Research Institute also shows some fall-off in consumer spending in the first quarter of the year, compared with the same period last year. If the Trump threats spark a transatlantic trade war, this will all intensify. And caution in business will ramp up. 'Cost control is back, for the first time in a few years,' according to a partner in one of the big accounting firms. Some companies reliant on non-essential corporate spending – events, leisure and so on – are also noticing. And it will not help the domestic SME sector, already struggling with costs. We should not really be surprised. It is called the business cycle. The wonder in Ireland is that the period of expansion has continued for so long, with activity levels shooting higher after the Covid disruption and the bulk of additional jobs filled through immigration, with pretty much full employment at home. Now, after a time when all the engines of the economy were on full power, the period ahead looks more mixed. [ Trump pushes EU to cut tariffs or face extra duties Opens in new window ] It is pointless trying to game plan how this will work out as Trump goes on the rampage. But it is impossible to see the uncertainty lifting quickly. Ireland has the budgetary resources to deal with the fallout in the short term. However, the longer-term impact on foreign direct investment of the new US economic nationalism will surely be significant. In the meantime, the key thing to watch is the vital factor in all economic calculations: sentiment. It is changing in households and businesses and this is having an impact. What happens next will largely depend on how the Trump tariff story plays out. Here, your guess is as good as mine. But it won't all be sorted in a few months and his latest comments seriously increase the risk of a damaging trade war and more unsettling swings on financial markets. The toxic weed of uncertainty is taking hold in the economy and will now be spreading further.
