Free Zone employment down 4%

WHILE there were a number of positives at the Shannon Free Zone last year, the numbers working there ultimately declined by 4% in 2010, the Shannon Development annual report shows.
There were 362 new jobs created at the Free Zone last year but 616 jobs were lost, a nett loss of 254.
The overall loss follows on from a nett loss of 787 jobs (11% of the total) in 2009 and a net gain of 108 jobs in 2008.
In the annual report, it was claimed the overall performance was quite good in the circumstances. “The Shannon Free Zone performed well against a difficult global business environment in 2010. During the year, 362 new jobs were created. Among the job highlights in 2010 was the announcement of up to 117 Shannon Development-supported new jobs at US global financial security firm Genworth Financial. While overall employment at Shannon Free Zone fell 4% year on year, it should be noted that almost 90% of these job losses were the result of downsizing and not closures, enabling Shannon Development to continue working with these companies to identify new market opportunities. Jobs in indigenous companies at Shannon Free Zone grew by 5.5% from 949 to 1,002 during 2010.”
It also states the Free Zone is of critical importance to the Mid-West’s economy. “Shannon Free Zone companies collectively contribute Q €600 million to the Irish and Shannon Region economy annually in areas such as staff payroll, materials and services. During the year, Shannon Free Zone companies generated almost €3 billion in sales and 92% of these were to export markets. Over 6,000 people are employed in Shannon Development client companies at Shannon Free Zone and another 614 are employed in service supply companies at the zone. Shannon Development will continue to focus on supporting enterprise to improve competitiveness and growth.”
The report expresses some confidence about 2011 and it feels work done last year may come to fruition.
“Considerable progress was made on marketing the zone to potential overseas investors during 2010, resulting in an encouraging pipeline of new projects and jobs in 2011 and Shannon Development is working with a number of potential clients and existing Shannon Free Zone clients on expansions and investments.
“During 2010, Shannon Development succeeded in securing 21 itineraries from prospective new clients for the Shannon Free Zone, 11 of which were generated in partnership with IDA Ireland.”
The report also found there was an increase on R&D spending at the Free Zone last year. “In-house R&D expenditure by Shannon Free Zone companies saw a 16% increase over the previous year to €56.4m. This encouraging development demonstrates the importance these forward-looking companies place on R&D and highlights the continued relevance of Shannon Free Zone as a key location for R&D investment in manufacturing and international services.”
It claimed financial supports went from Shannon Development to a number of companies in the Free Zone last year.
“Shannon Development-approved financial supports to Shannon Free Zone companies in 2010 leveraged investments of over €8.5m by these companies. A total of 15 Shannon Free Zone companies received Shannon Development support packages across key areas such as R&D, management development, international marketing supports and training.
“These supports illustrate Shannon Development’s commitment to enabling Free Zone companies to take part in the global economic recovery,” the report stated.