Attracting investment to Regional Locations An IDA Perspective

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Attracting investment to Regional LocationsAn
IDA Perspective
Association of Geography Teachers of
Ireland Annual Conference Cork 3rd October

Ray OConnor Regional Manager South-West
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Agenda

• Overview of IDA Ireland - The Business of IDA
• Regional Development
• Challenges/Opportunities for Gateways Hubs

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The Business of IDA Ireland
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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

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FÁS National Training Agency
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IDA Offices Worldwide
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Paths to Winning Projects
www. Business Ireland
Conferences
Industry Groups
Call to IDA
Cold Calls
Consultants
LEADS
Market Research
Referrals
Presentations/Visits to Ireland /Win Project
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Case Study Lessons learned

• Established in 1985 - Worlds 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

• 20 yrs to win investment.. 1 yr. for
  postponement.
• Intense int. competition building relationships
• Investor Criteria must be exceeded
• Investor Decisions are made for commercial reasons

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Work needed to generate a project
1000 Calls
100 meetings
10 Site Visits
2 to 3 projects
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National IDA Job Gains and Losses 1997 - 2006
1997 1998 1999 2000 2001
2002 2003 2004 2005 2006
Source Forfas Annual Employment Surveys
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Source IDA Annual Report , 2006 / Forfas
Employment Survey
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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 RD by multinationals

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Business Areas and Activities

• Manufacturing
• Technical customer support
• Business processes
• e-procurement
• Sales Marketing
• Supply chain management
• Research Development
• Brand IP management
• Headquarters

• Life Sciences
• Pharma biopharma
• Medical technologies
• ICT
• Software
• Semiconductors
• Systems
• Financial services
• International services
• Digital media
• and many others
• New Areas

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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

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Niche Markets
High Margin

High Skills
Low Labour Content
Knowledge Intensive
Customised
Specialised Skills
Emerging/Growth
After sales service Intensive
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Regional DevelopmentAttracting FDI to Irelands
Regions
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Regional Development

• Growing recognition in Europe that major
  city-regions play a central role in developing
  modern knowledge based economies
• Knowledge based sectors are heavily concentrated
  in or near the centres of major cities
• We compete with city-regions elsewhere with
  populations of 1 million or more
• Irelands regions are small in comparison
• We must think and act regionally, not locally
• Critical mass is essential and gateways are key
• IDA Ireland is aligned to the NSS with an
  embedded regional Structure

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High income, Technology leaders
Mid Cost Manufacturing
Low cost manufacturing and services - and more!

The oil rich
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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 ?

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Where would you choose to holiday in Ireland ?
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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
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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
• RPGs
• As is
• The right skills
• The right attitude

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IDA Projects 2007 - Trend towards urban locations

• 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.
• There are considerable challenges for hubs and
  smaller locations

Pramerica
Daiwa Securities
System Label
Teleflex
Merrill Lynch
KTI
Paragon
Fidelity
Intel
Gala Inc.
IBM
Integra
Wyeth
Gilead
Nortel
Gateway Hub
AR Europe
ACI Worldwide
Rovsing A/S
Genzyme
Equifax Inc.
Sanmina SCI
Int Fin Services ICT Pharma Med
Tech Globally Traded Business
Apex
DeCare
Gilead
Blizzard
VMware
Allen Vanguard
IBM
GSK
Solarwinds
Source IDA Website
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Marketing Gateways Hubs
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Corks 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
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Sell the region not the town

• Population 10,241
• Workforce 4,624
• 3rd level colleges 0
• Airports 0
• Reference Companies Kostal ITW Hi-Cone TR
  Southern Fastners, etc..

• Population 689,012 within 60km.
• Workforce 307,426 within 60km.
• 3rd 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, McAfee,
  Kerry Group, Fexco, etc..

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Innovative Property SolutionsKerry 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 InnovationWorks Building
• 24,000 InnovationWorks 2 building
• 16 companies on-site
• Over 300 people employed
• Active local Management
• Shannon Development Investment to date 10m
• Kerry Innovation Centre/ Campus Enterprise

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Determination ! West Cork Technology Park,
Clonakilty

• 300,000 sq. ft. facility
• Custom built office space from 2000 sq. ft. to
  80,000 sq. ft.

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Irelands 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

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Ireland continues to win investment in 2008
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Thank You Ray OConnor Regional Manager
South-West IDA Ireland
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Support slides
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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

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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 3rd level enrolment 59,800
approx enrolment for 2006
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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 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 1hr 40 min of
Mallow -Cork International Airport only 40 min
from Mallow, servicing 850 weekly flights to 50
destinations by 27 airlines
Property Solutions Mallow West - 500m worth of
development on the 400-acre site.
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Mallow Connectivity Access to Airports
Dublin Airport
Shannon Airport
Mallow
Cork Airport 40 min / 40 km
International Airport
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Mallow

• The need to create and communicate Mallows
  offering as an investment location with the best
  of both worlds

Well-located business area, has access to the
critical mass of
The advantages of NOT being a city location
More Cost Competitive (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
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)
PLUS