IBEC: Manufacturing sector in urgent need of assistance
IBEC have said that the latest official industrial production figures from the CSO confirm the crisis currently facing Ireland’s traditional manufacturing sector.
IBEC senior economist Fergal O’Brien said: "At first glance it appears that the country’s manufacturing sector is not performing too badly at present – given the turmoil in the global economy, a drop of just 3% in output in the first quarter of the year compares very favourably in international terms.
"However, when we delve below the headline data we see that the modern sectors of pharmachem and medical continue to increase output levels while production in food, engineering and other traditional sectors has dropped substantially.
"Food and beverage production fell by 8.5% in the first quarter; rubber and plastic output was down 30%, while machinery and engineering equipment production fell by 36%.
"Overall, output from the traditional manufacturing sectors fell by 15% in the first quarter of the year, while that in the modern sector increase by almost 2%.
"The weakness of sterling has greatly accentuated the difficulties faced by many manufacturing businesses at present.
"These businesses require urgent Government intervention in order to help them survive the current economic crisis and to ensure that as many jobs as possible are protected."
