Despite the downturn from the US hindering its growth, Northern Ireland has the fastest-growing economy of UK regions. Firms are attracted by its young, educated workforce and low employee turnover. Now it just need needs to work on its reputation.
|
Northern Ireland Area population and market statistics |
||||||
|
Earnings are higher for those classified as managers and senior officials, and lowest for those working in sales and customer services |
||||||
|
Area (sq km) |
Population density (people per sq km) |
Population: male (000s) |
Population: female (000s) |
Population (000s) at mid-2002 |
Average gross weekly earnings (£) (April 2003) |
|
|
UK |
241,930 |
4,112 |
28,611 |
30,225 |
58,837 |
475.8 |
|
Northern Ireland |
13,576 |
124 |
824.4 |
864.9 |
1,689.3 |
404 |
|
Eastern |
1,751 |
381 |
319.4 |
347.4 |
666.8 |
– |
|
Northern |
4,093 |
105 |
210 |
218.2 |
445 |
– |
|
Southern |
3,075 |
102 |
154.7 |
157.4 |
312.1 |
– |
|
Western |
4,658 |
61 |
140.4 |
141.7 |
282.1 |
– |
|
Source: UK: Office for National Statistics NI: Department of Enterprise, Trade and Investment for Northern Ireland |
||||||
Last year was a tough one for most regions in the UK.
The continuing US economic downturn and Britain’s involvement in the Iraq war meant companies across the world tightened their belts and potential expansions were put on hold.
The gloomy US economic state was particularly bad news for Northern Ireland. In the past 10 years, up to 70% of investment enquiries have come from America and Canada.
However, Northern Ireland’s development agency, Invest Northern Ireland, remains positive and talking up the what the region has to offer.
Colin Lewis, INI’s director for international sales and marketing, says that, despite efforts to attract high-quality international investment being “hindered by a depressed global market”, the province has “retained its high market share of British Isles inward investment”.
“The high level of visits by potential inventors to Northern Ireland confirms the strength of the Northern Ireland investment proposition and we are well positioned for the eventual recovery of corporate capital investment,” says Lewis.
This was demonstrated at the end of 2003, when US pharmaceutical research, development and manufacturing company Keil Laboratories announced it was to invest over £5m to set up a manufacturing facility in Carrickfergus, County Antrim. This will create more than 100 jobs.
Keil’s decision in choosing the province was a good one from an employer’s prospective. Even with the downturn, Northern Ireland still has the UK’s fastest-growing regional economy: manufacturing output has increased by a third six times the rate of the UK average and office market take-up is predicted to exceed 250,000 sq ft higher than in 2003.
On the employment front, an average of 9,000 jobs a year were created during the last decade.
The region has a young, well-educated, loyal workforce. Labour turnover is less than 10%, while around 46% of the 1.6m population is under 30; two-thirds of these have gone on to higher education. With such a well-educated, young pool of prospective employees to draw on, Northern Ireland has become a magnet for the IT and telecoms sector. This is helped by the province having a fibreoptic network with broadband to communicate with the rest of Europe.
Software, contact centres, telecommunications and electronics, life and health sciences, and manufacturing are the top five growth areas, and INI is continuing to focus on them in 2004. As well as the Keil success story, Allen Systems Group, a worldwide enterprise software and professional services provider, is to invest £3.6m in a new development centre in Belfast, creating 168 jobs.
Transport links with the rest of the UK and Republic of Ireland are excellent. Around five domestic airlines fly from Britain into the City airport in the centre of Belfast, or the Aldergrove, 14 miles from the city. Derry City, Northern Ireland’s second city, has a growing airport that has opened up the north west of the region.
Undeniably, the IRA ceasefire in 1996 and the 1999 Good Friday peace agreement have given Northern Ireland greater confidence in promoting itself. The years of terrorism have meant that prices have not escalated as in the UK. For instance, at around £14 per sq ft, office rents are among UK’s lowest.
Importantly for prospective employees, house prices have stayed at a manageable level. Figures published in December by the University of Ulster and Bank of Ireland show the average house costs just over £105,000. This means that Northern Ireland can take comfort in a local market less vulnerable to negative shock.
Northern Ireland is becoming a retail magnet for some of the UK’s biggest retailers. According to CB Richard Ellis Gunne’s Autumn NI commercial property update, H&M, Hennes, Mango, Office, Bear Factory, Ted Baker and Reiss are all seeking their first stores there.
Prime prices for shops
As a result, premiums are paid for prime locations, and CBRE’s Gunne predicts zone A rental levels will come close to £300 per sq ft. They are now £275 per sq ft.
As easy as it is to list Northern Ireland’s positive points and the excellent position it is in to tap into any recovering economy, it is still haunted by its troubled past. “Our one barrier that we still have is the perception that we have an unstable society,” says Brendan Mullan, chief executive of Investment Belfast, a public-private body set up by Belfast city council to promote the city.
Last year’s suspension of Northern Ireland’s ruling assembly, delays in electing a new body and the refusal of political parties to work with each other has only added to the bad imagery.
“Until we get the absolute final agreement in the peace process, the international community will still have doubts about Northern Ireland,” says Mullan. But he believes that, in the next few years, Northern Ireland will soon put the past behind it and its potential will be fully realised.
Belfast: new plans and a flexible approach ahead
With more than 750,000 people out of a population of 1.6m living in and around the city, Belfast is the main port of call for most investors. But the city’s growth has been stunted by an antiquated planning system working to an outdated urban plan.
That is set to change with the launch last year of the Belfast Metropolitan Area Plan. Commissioned by the Department of Environment, Northern Ireland, it will be the basis of the city’s continuing development up to 2015, and will cover offices and industrial buildings, as well as social and residential.
Importantly for attracting investors, it is expected to take a more flexible approach to commercial projects. As its manifesto promises, BMAP will “support the prosperity of Belfast and its development as a thriving and attractive European capital and regional centre”.
|
Key contacts in Northern Ireland |
||
|
Advice and assistance for inward investors |
||
|
Organisation |
Website address |
Telephone |
|
Belfast City Council Economic Development Unit |
+44 (0)28 9032 0202 |
|
|
Investment Belfast |
+44 (0)2890 331136 |
|
|
Invest Northern Ireland |
+44 (0)28 90 239090 |
|
|
Northern Ireland Chamber of Commerce & Industry |
+44 (0)28 90244113 |
|
|
Northern Ireland Executive |
||
|
Northern Ireland Tourist Board |
+44 (0)28 9023 1221 |
|
