The Challenges Facing Ireland Inc. Jim Collins BSc, MBA, MCMI Ahearne Collins & Associates Ltd.

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Presentation transcript:

The Challenges Facing Ireland Inc. Jim Collins BSc, MBA, MCMI Ahearne Collins & Associates Ltd.

© 2005 Ahearne Collins & Associates Ltd Enterprise Strategy Group Report “ Ahead of the Curve” Report published 2004 Key Challenges identified Exponential change in scale of Globalisation Increased Irish cost base Corporate tax rate competitive emulation Limited export growth of indigenous companies Imminent changes in EU state aid limits Services becoming major GDP growth driver Knowledge as driver of economic development

© 2005 Ahearne Collins & Associates Ltd The Challenges Globalisation The China Price! 38 million educated citizens working in manufacturing facilities in Cities and a further 70 million in suburbs & rural locations Average city $1/hour, $0.45/hour Irish Cost Base 2003: € appreciated 20% vs $ & 8% vs £. Irish price levels deteriorated 14% & are now 12% above the average EU cost base. 1999: highest net job creation & highest job losses. Last 4 years: 33,000 jobs lost, over 50% in the high tech sector.

© 2005 Ahearne Collins & Associates Ltd ESG Report / ctd Making it Happen

© 2005 Ahearne Collins & Associates Ltd Opportunities High value-added manufacturing ….. Will remain a fundamental component of Ireland’s enterprise environment Export Growth The $100 billion club! : 16 countries exporting >$100 billion of Manufactured goods Next 2 Years: Joined by Russia, Malaysia & Ireland! 1 Stephen Gould VP US National Assoc. of Manufacturers, Future Manufacturing Forum, Sept 26 th 2005

© 2005 Ahearne Collins & Associates Ltd Realising the Potential World-class Skills, Education & Training Upskilling general workforce Lifelong skills development Distinction in HE graduate quality Cost Competitiveness Partnership Rewarding workplace productivity Focus on Adding Value not Cost Management Capability Business networks

© 2005 Ahearne Collins & Associates Ltd The Lean Solution Engage & Empower Employees Pursuit of Perfection & Elimination of Waste Providing Added Value to Customers Efficiency and Effectiveness Partnership

© 2005 Ahearne Collins & Associates Ltd Ohno… The Toyota Way Defining Work Advance in the process & enhance the added value Motion ≠ Work Respecting Humanity Employees give valuable time & energy Company provides opportunity to do meaningful work People’s sense of value requires worthwhile work A man-hour is something that we can always count. Manpower is beyond measurement. Capabilities can be extended infinitely when everyone begins to think !