Ireland regaining competitiveness – IBEC
Ireland is rapidly regaining the competitiveness it lost during the boom years, according to a new report released today at IBEC’s CEO Conference.
Ireland’s costs are coming into line internationally, exporters are increasing global market share and unemployment appears to have levelled off, explained Danny McCoy, adding that businesses have reacted swiftly and decisively to the recession.
“We are now positioned for recovery and equipped to create balanced and sustainable growth,” he said.
The IBEC report Productivity and adjustment shows that as pay rates and other costs have been reduced, Irish firms are again performing strongly in international markets.
It also found that major restructuring programmes and a stronger focus on productivity in businesses has delivered average annual unit cost reductions of 7pc. Companies generally have more control over labour and overheads and these costs have dropped even more, said Ibec.
“It is through this combination of cost reduction and productivity growth that Ireland is making significant strides in regaining its lost competitiveness,” continued the report.
“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,” added McCoy.
“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.