2011 started with some good news for Irish businesses with the Irish Exporters Association (IEA) reporting the highest export figure ever recorded with total exports of goods and services for 2010 coming in at €161bn.
Given the events of last year, the news presented some hope for Irish businesses for the year ahead and once again reiterated the importance of the export sector and its potential to contribute to Ireland’s economic recovery.
Looking ahead, the IEA is projecting that exports of goods will grow by 5% in 2011 with the services sector forecast to grow by 10% giving an overall growth forecast of 7.2% for the year which could push Irish exports to a new high of €172.6bn.
The figures speak for themselves-the international markets had a major role to play in the export figures. Exports to North America were particularly strong with sales to the market up by 18% for the year and sales to Canada up by 27%.
The emerging markets also played a key role with exports to markets such as Brazil, Russia, India and China up by 12%. While exports to Germany, which is considered one of the strongest EU markets, were up by 42%.
The findings also noted a clear shift away from the dependence on the UK market in favour of exporting to North America, South America and Asia.
According to Graham Byrne, Director Bibby Financial Services Ireland, “The new markets targeted by Irish exporters reveal a more open-minded approach from Irish businesses on how and where they choose to do business. Where once Irish export activity was mainly focused on traditional markets, Irish businesses are increasingly being encouraged to think outside the box- this applies to how they are now running their business more generally and through the increased use of export invoice finance to fund their business activity.
“We are finding that export activity has become a priority for many of our clients who are either currently exporting and looking to increase their export side of business or putting plans in place to enter overseas markets. Irish SME’s are now prepared to take their business to the next level and are looking into the practicalities of trading overseas. In particular, our clients are seeking advice on what finance solutions are open to them and are becoming aware of the benefits of export invoice finance as a viable source of business funding.”
Export invoice finance is ideally suited to fast-growing small and medium sized businesses. The principal advantage is that it can speed up cash flow by providing an immediate and then ongoing source of funding against the value of customer invoices. In addition by offering a comprehensive credit management and collections facility the time lag between issuing an invoice and receiving customer payment can be eliminated and so releasing cash tied up in outstanding customer invoices for domestic or overseas trade.
“It is certainly our experience that accountants are aware that the negative associations once linked to invoice finance and export invoice finance no longer exist and are educating their clients making them aware of the alternative options available to them in this tough climate.” said Graham Byrne Director Bibby Financial Services Ireland.
Posted on 22 March 2011