LUCRATIVE ALL-ISLAND INITIATIVE In association with InterTradeIreland

Liam Nellis, Chief Executive, InterTradeIreland

Northern Ireland is fertile ground for Irish businesses with plenty of opportunities available to expand, export and improve profits, explains Liam Nellis.

For many years the two economies North and South turned their backs on each other and there was a lack of any serious level of engagement between business people in the two parts of the island, according to Liam Nellis, CEO, InterTradeIreland.

NEW MARKET OPPORTUNITIES

Clearly the environment is changing and the tendency over the last decade has been more engagement. “Southern companies are now beginning to look at the opportunities rather than the situation where there was an unwillingness or concern about doing business in the North. Many companies are now looking at a market on their doorstep. It is practically a new market of 1.7 million people, 60% of the population is under 40 years of age and there is a major pool of talent and skills for companies wanting to locate or sell into the Northern Ireland market,” he says.

There are 640 externally owned companies, employing 74,000 people. These companies include Seagate Technology, DuPont, Bombardier Aerospace, Caterpillar, Nortel and financial institutions such as Halifax, Prudential and Abbey.

This offers a significant market opportunity for companies from the South.

FIRST STEPS

Nellis maintains that doing business in the North is a good first-step to further expansion because first the business learns to operate under a different currency right on their doorstep, obviously reducing the risks.

“There was definitely a chill factor over the years going both ways and quite a number of southern companies didn’t look North and visa-versa. But increasingly there are signs that the chill is decreasing significantly. Our experience through a number of our programmes bears this out,” explains Nellis.

Total cross-border trade rose by 5.5% from 2004 to 2005. Trade from Northern Ireland to the Republic rose by 8.6% (€934.5 million to €1013.7million) from 2004 to 2005. The rate of increase from the Republic to Northern Ireland was 2.9%. “More and more people are beginning to wake up to the opportunities presented on the island and, through collaboration, to the opportunities that can be opened off the island,” he said.

“The island, North and South, faces common external challenges from globalisation. Companies should be encouraged to redesign their strategies and treat Ireland as one commercial zone rather than two separate entities,” Nellis says. “This might involve companies changing suppliers, improving the operation of subcontracting networks, reorganising distribution networks, or even moving to a new location. All of these changes are likely to have competitiveness boosting effects,” he added.

ACUMEN SUCCESS

Since 2003 InterTradeIreland has funded 180 companies under the Acumen programme. They are reporting an increase of €19million in cross border sales and 133 new jobs. “The opportunity is there and companies need to know that there is a vehicle in place if they want to look either at testing their toe in the Northern market or if they are already there and they want to build their business further. Support is also available for Northern businesses wanting to export South,” Nellis concludes.

CONSULTANCY SUPPORT InterTradeIreland’s Acumen programme will fund 50% of the cost of the consultancy. The consultancy period can be spread over six to twelve month period. The maximum cost covered can be up to €8,500/£6,000 with InterTradeIreland Acumen paying €4,250/£3,000 and the company contributes the balance. SALES SALARY SUPPORT Acumen can assist with the first year's salary for the appointment of a dedicated sales person by funding 50% of taxable salary up to a maximum of €17,000 / £12,000. PROSPECTOR SUPPORT Acumen will fund 50% of the total cost of a prospector assignment up to a maximum of €8,500 or £6,000. Net €4250 / £3,000 The following elements will be allowable in each assignment: 50% of Recruitment / Selection advertising for the prospector 50% of total eligible costs €4,250 / £3,000. Net €2,125 / £1,500 50% for product familiarisation and market canvass costs, 50% of total eligible costs. €4250 / £3,000 Net €2,125 / £1,500