Association of Geography Teachers of Ireland Annual Conference

Association of Geography Teachers of Ireland Annual Conference Cork 3 rd 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 § Quantity & Quality of investments • • Regional spread New business areas § Employs 295 people

FÁS National Training Agency

IDA Offices Worldwide Ireland Chicago California UK France New York Atlanta Germany 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 v 20+ yrs to win investment…. . 1 yr. for postponement. v. Intense int. competition – building relationships v. Investor Criteria must be exceeded v. 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 1997 1998 1999 2000 2001 2002 2003 Source: Forfas Annual Employment Surveys 2004 2005 2006

Source: IDA Annual Report , 2006 / Forfas Employment Survey

Business Mega-Trends Future Business in Ireland • • • 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 • • Life Sciences: • Pharma & biopharma • Medical technologies ICT: • Software • Semiconductors • Systems • Manufacturing • Technical & customer support • Business processes • e-procurement • Financial services • Sales & Marketing • International services: • Digital media • and many others • Supply chain management • Research & Development • Brand & IP management • Headquarters • New Areas

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

• 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 q Growing recognition in Europe that major city-regions play a central role in developing modern knowledge based economies q Knowledge based sectors are heavily concentrated in or near the centres of major cities q We compete with city-regions elsewhere with populations of 1 million or more q Ireland’s regions are small in comparison q We must think and act regionally, not locally q Critical mass is essential and gateways are key q 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! • The oil rich

What FDI Investors Seek in a location • The right people and skills – in abundance • The right infrastructure: • • 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 • Companies will select those locations that enable their business to succeed in international markets • Delivering the right infrastructure is critical in attracting FDI to the regions: • • • 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 • Successful delivery of projects in Gateways and hubs. • Some Gateways and hubs are more attractive to investors for investment. • Scale & Critical mass are important distinguishing factors. • 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 De. Care 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 • • • Population : 10, 241 Workforce: 4, 624 3 rd level colleges: 0 Airports: 0 Reference Companies: Kostal; ITW Hi-Cone; TR Southern Fastners, etc. . • • Population: 689, 012 within 60 km. Workforce: 307, 426 within 60 km. 3 rd 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, Mc. Afee, Kerry Group, Fexco, etc. .

Innovative Property Solutions Kerry Technology Park, Tralee • • • 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 Innovation. Works Building 24, 000 Innovation. Works 2 building 16 companies on-site Over 300 people employed Active local Management Shannon Development Investment to date: € 10 m 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 • Look at your offering in the context of Investors’ Criteria / Requirements. • Look at the type of investment projects Ireland is attracting / targeting. • Take a regional approach - not a local town/hub focus. • Some Gateways have greater opportunities to attract FDI over Hubs. • Hubs can feed into and out of Gateways. • Are there other economic opportunities – tourism, indigenous companies, retail, decentralisation, green initiatives, food & agriculture, commuter towns, etc. . • Always focus on positive – no matter what. e. g. Digital, Motorola • It is a team effort to develop & market a location – investors can Google ! • 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 3 rd level enrolment: 59, 800 0 20 40 60 80 100 Kilometres *approx enrolment for 2006 N

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 - € 500 m 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 1 hr 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 0 20 40 60 80 100 Kilometres N

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 (, 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 (lower property costs, lower cost of living: house prices, childcare) 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