Willie Penrose (Westmeath, Labour)
Link to this: Individually | In context

Question 170: To ask the Minister for Enterprise, Trade and Employment his response to the NCB Purchasing Managers Index for November 2006 which shows that growth in the manufacturing industry has almost ceased; the actions he will take to ensure a sufficient manufacturing base exists here; and if he will make a statement on the matter. [2547/07]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Any figure above 50 in the NCB Purchasing Managers Index indicates sectoral growth. The Irish manufacturing sector expanded for the 39th consecutive month in November with a modest growth rate of 51.6. Further expansion occurred in December when the index rose to 53, above its long-term average of 52.6.

The Irish manufacturing sector has been a key component of the Irish economy over the last two decades and I believe that it will continue to be a significant contributor to exports, employment and economic growth in the future. The performance of the sector is subject to ongoing review by my Department and the enterprise development agencies. For example, the July 2006 report: "The Changing Nature of Manufacturing and Services, Irish Trends and International Context", by Forfás, on the changing nature of manufacturing demonstrates that the trends in Ireland are in line with the gradual process of structural change that characterises economic development. This has resulted in a decrease in the numbers employed in manufacturing with a concurrent rise in the number of jobs in services. While the total number employed in the sector may have declined, both manufacturing output and merchandise export levels increased significantly between 2000 and 2005 (by 28.2% and 31.8% in volume terms respectively). This trend suggests that strong productivity improvements have been achieved over the past 5/6 years in the Irish manufacturing sector. It should also be noted that the latest CSO release on Industrial Employment (28 Dec 2006) indicated an increase of 4,000 in the numbers employed in manufacturing in the quarter ending September 2006 relative to the same period in 2005.

To assist industry maintain competitiveness and increase productivity, the economic development agencies are working on an ongoing basis to promote the adoption of new technology and best practice at company level. The agencies aim to support sustainable, high value added enterprise in Ireland through the provision of mentoring and developmental supports, the enhancement of management capabilities and critical workforce skills in client companies, support for the creation and implementation of strategies for market entry, development and growth, and strong supports for innovation and for research and development.