Number of persons engaged and turnover in Irish-owned foreign affiliates by sector, 2011 - 2013 | |||||||||
Number of persons engaged | % Change | Turnover (€millions) | % Change | ||||||
20111 | 20121 | 2013 | 2012-2013 | 20111 | 20121 | 2013 | 2012-2013 | ||
All sectors | 257,098 | 259,267 | 261,428 | 0.8 | 83,735 | 85,622 | 91,224 | 6.5 | |
- Manufacturing | 82,468 | 84,771 | 84,453 | -0.4 | 19,627 | 21,401 | 21,496 | 0.4 | |
- Other industrial | 3,801 | 2,974 | 4,684 | 57.5 | 1,309 | 1,300 | 1,385 | 6.5 | |
- Construction | 2,383 | 1,112 | 1,011 | -9.1 | 710 | 572 | 548 | -4.2 | |
- Services | 168,446 | 170,410 | 171,280 | 0.5 | 62,089 | 62,349 | 67,795 | 8.7 | |
1 Outward Foreign Affiliates Statistics were revised for 2011 and 2012 |
In 2013, Irish multinationals abroad had turnover in excess of €91bn, which represented a 6.5% increase on 2012 levels. These affiliates employed over 261,000 persons, an increase of 0.8% on the previous year.
The Services sector, which includes Distribution, dominated in terms of both employment and turnover. This sector had the biggest growth, with turnover increasing by 8.7% to nearly €68 billion, and employment rising by 0.5% to over 171,000. Turnover in foreign Manufacturing affiliates increased by 0.4% in 2013 to nearly €21.5 billion, although employment in the Manufacturing sector decreased by 0.4% to just under 84,500 persons. Turnover in foreign Construction affiliates fell by 4.2% to under €550 million, while employment in Construction affiliates decreased by 9.1% to 1,011 persons.
Outward Foreign Affiliates Statistics (OFATS) cover the activities of Irish multinationals abroad. The purpose of the survey is to allow analysis of the sectoral and geographical composition of the affiliates controlled by Irish multinationals. Care should be taken when analysing the Outward Foreign Affiliates Statistics as the survey is relatively new and the register of Irish multinationals continues to be developed. Please click the following link to access details on the methodology used to compile these statistics: http://cso.ie/shorturl.aspx/434
Almost all turnover abroad in Irish multinationals was in Services and Manufacturing
Services, which includes Distribution, was the dominant sector for turnover in Irish affiliates abroad in 2013 with 74.3% of all turnover, while Manufacturing affiliates accounted for 23.6%. There was a similar picture when looking at persons engaged, where 65.5% of persons were in Services while Manufacturing affiliates accounted for 32.3%. The Construction and Other Industrial sectors combined accounted for approximately 2% of both turnover and employment.
See Figures 1 and 2.
For long labels below use to display on multiple lines | Turnover |
---|---|
Manufacturing | 23.5639743927037 |
Other industrial | 1.51824081382092 |
Construction | 0.600719109006402 |
Services | 74.317065684469 |
For long labels below use to display on multiple lines | % of persons engaged |
---|---|
Manufacturing | 32.3 |
Other industrial | 1.8 |
Construction | 0.4 |
Services | 65.5 |
Majority of employment and turnover in Irish affiliates abroad in UK and US
When analysing Irish affiliates abroad by country of activity, the UK was the most important country in 2013 with employment of over 80,000 and turnover of €37.4 billion. This was followed by the US with employment of nearly 71,000 and turnover of €22.7 billion. The UK and the US combined accounted for 57.8% of total employment and 65.8% of total turnover in Irish affiliates abroad. Other countries with high employment and turnover were Germany, the Netherlands and France. See Figures 3 and 4.
2011 | 2012 | 2013 | |
UK | 79682 | 84035 | 80199 |
US | 65146 | 64291 | 70927 |
Germany | 15605 | 15246 | 14269 |
Netherlands | 13949 | 13601 | 12911 |
France | 10958 | 10883 | 10337 |
Poland | 6408 | 6559 | 5915 |
Spain | 4106 | 3404 | 4811 |
Belgium | 4412 | 4445 | 4248 |
Canada | 2917 | 3152 | 3798 |
Italy | 2620 | 2853 | 2753 |
Other countries | 51295 | 50798 | 51260 |
2011 | 2012 | 2013 | |
UK | 30721 | 34544 | 37414 |
US | 20156 | 21728 | 22651 |
Germany | 4114 | 3623 | 3830 |
Netherlands | 4111 | 3788 | 3664 |
France | 2600 | 2850 | 2386 |
Spain | 1210 | 1141 | 1422 |
Belgium | 909 | 967 | 1150 |
Poland | 1091 | 939 | 836 |
Canada | 681 | 696 | 753 |
Italy | 739 | 728 | 699 |
Other countries | 17403 | 14618 | 16419 |
More turnover generated in Distribution than any other sector by Irish affiliates abroad
When looking at the sectoral composition of turnover generated by Irish affiliates abroad, the Distribution sector held the largest share with 35.3% of the overall figure, followed by Manufacturing with 23.6% and Professional, Scientific and Technical activities with 19.6%. The rest of the sectoral activities combined accounted for less than 22% of total turnover. See Figure 5.
Percentage | |
Distribution | 35.2615087973006 |
Manufacturing | 23.5500339621815 |
Professional, Scientific and Technical activities | 19.5567387541357 |
Financial and Insurance activities | 11.5230395056859 |
Information and Communication | 0.432743925151734 |
Construction | 0.600363724007976 |
Other | 9.07557133153663 |
European multinational employment outside EU dominated by UK, France and Germany
The number of persons engaged in Irish-owned foreign affiliates outside the EU was over 102,000 in 2012. This represented 0.7% of the 14.7 million persons employed by European multinationals outside the EU. The largest contributors to this employment were British-owned foreign affiliates at 25.5%, French-owned affiliates at 22.8% and German-owned foreign affiliates at 18.7%. See Figure 6.
For long labels below use to display on multiple lines | % of total EU28 |
---|---|
Irish | 0.7 |
Dutch | 5.3 |
Italian | 7 |
Other | 20.0 |
German | 18.7 |
French | 22.8 |
British | 25.5 |
Irish multinational employment outside EU dominated by Services
In terms of the sectoral breakdown of employment in European-owned foreign affiliates outside the EU, Irish and British multinationals had over 65% of their employment in the Services sector. By contrast, German and Italian multinationals had a greater emphasis on Manufacturing. Employment in Irish-owned foreign affiliates outside the EU was 69.4% for the Services sector compared to 28.3% for the Manufacturing sector. See Figure 7.
Services | Manufacturing | |
Irish | 69.3915049160461 | 28.343009050216 |
British | 65.1397015388152 | 25.1524247632438 |
French | 57.0938768088202 | 35.7995655003445 |
German | 41.8669362726726 | 53.3849143738882 |
Italian | 38.8729381023966 | 48.1283995553481 |
Services accounted for 68% of Irish Turnover outside EU
The figures for Irish owned multinationals outside the EU indicated that the Services sector generated 67.7% of all turnover while 30.4% of turnover came from Manufacturing.
When looking at the detailed turnover figures for European-owned foreign affiliates outside the EU, it is very much a reflection of the situation seen with employment data. Irish, British and German owned multinationals each had over 50% of their turnover from Services, while the Italians reported that 52% of their turnover came from the Manufacturing sector. See Figure 8.
Services | Manufacturing | |
Irish | 67.7211080652143 | 30.4285095945751 |
British | 51.7362538073996 | 30.6864712806893 |
French | 43.8053074566935 | 39.7377158889089 |
German | 55.7209940131123 | 40.0829028923094 |
Italian | 32.9958268313698 | 52.0053842213725 |
Revisions to Outward Foreign Affiliates Statistics, 2011 and 2012
As a result of the ongoing development of the survey and register of Irish multinationals new information becomes available every year. Consequently, revisions were made to Outward Foreign Affiliates Statistics for 2011 and 2012.
Total employment in Irish-owned foreign affiliates in 2011 was revised upwards from 251,600 persons to 257,100 persons and turnover from €75.3 billion to €83.7 billion. For reference year 2012 the revisions resulted in an increase in turnover from €75.9 billion to €85.6 billion and total employment increased from 246,000 persons to 259,300 persons. Sectoral and country breakdowns were also amended.
Outward Foreign Affiliates Statistics (OFATS)
Target population
The target population for outward FATS comprises all foreign-based affiliates that are controlled by an institutional unit resident in the compiling country. The units that actually complete the CSO Outward FATS survey, however, are resident institutional units i.e. Irish multinationals. The Outward FATS survey requires the CSO to survey domestic-based Irish multinationals and request information about their foreign-based affiliates.
Data source
The CSO carry out a survey to capture the outward FATS information . On the survey form respondents are required to complete a list of foreign affiliates that are under the control of the Irish multinational.
The required variables for each foreign affiliate are as follows:
• Name of foreign affiliate
• Country in which foreign affiliate is located
• Description of the activity of the foreign affiliate (which is coded to NACE Rev. 2 activity codes)
• Shares in registered capital of foreign affiliate (only a shareholding of 51% or greater in a foreign affiliate is taken for compilation purposes).
• Turnover
• Number of persons engaged
Main Concepts and Definitions
1. Institutional unit
An institutional unit is an elementary economic decision-making centre characterised by uniformity of behaviour and decision-making autonomy in the exercise of its principal function. A unit is regarded as constituting an institutional unit if it has decision-making autonomy in respect of its principal function and keeps a complete set of accounts.
2. Foreign Affiliate
A foreign affiliate is enterprise not resident in the compiling country over which an institutional unit resident in the compiling country has control (Outward FATS).
3. Control
The concept of control is used for the breakdown of the FATS variables. Control means the ability to determine the general policy of an enterprise by choosing appropriate directors, if necessary. In this context, enterprise A is deemed to be controlled by an institutional unit B when B controls, whether directly or indirectly, more than half of the shareholders’ voting power or more than half of the shares.
Indirect control means that an institutional unit may have control through another affiliate which has control over enterprise A.
Therefore, control implies the ability to determine the strategy of an enterprise, to guide its activities and to appoint a majority of directors. In most cases, this ability can be exercised by a single investor holding a majority (more than 50 %) of the voting power or of the shares, directly or indirectly.
4. Ultimate controlling institution (UCI)
The ultimate controlling institution (UCI) of a foreign affiliate is an institutional unit, proceeding up a foreign affiliate’s chain of control, which is not controlled by another institutional unit. FATS data are compiled according to the UCI concept. The crucial characteristic of a UCI is that it should effectively control and manage the group, i.e. take global strategic decisions.
Therefore, in the case of Ireland, Outward FATS describes the activities of affiliates abroad where the UCI is an Irish resident institutional unit.
5. Residency
The place of residency of an UCI is the country of registration of the UCI in the case of legal entities and the country of residence in the case of natural persons acting as UCI. Residency is often but not always the nationality of the UCI.
Geographical Breakdown
The Outward FATS variables are broken down by the resident country of the foreign affiliates. These countries have been amalgamated into geographical aggregates which are listed separately.
Activity Breakdown
The NACE Rev. 2 sectors covered by the Outward FATS data are as follows:
A - Agriculture, forestry and fishing
B - Mining and quarrying
C - Manufacturing
D - Electricity, gas, steam and air conditioning supply
E - Water supply; sewerage, waste management and remediation activities
F - Construction
G - Wholesale and retail trade; repair of motor vehicles and motorcycles
H - Transportation and storage
I - Accommodation and food service activities
J - Information and communication
K - Financial and insurance activities
L - Real estate activities
M - Professional, scientific and technical activities
N - Administrative and support service activities
P - Education
Q - Human health and social work activities
R - Arts, entertainment and recreation
S - Other service activities
Note: A special article was published the Business in Ireland 2010 that goes into more detail on compiling Outward Foreign Affiliates Statistics (OFATS). Please click the following link: Business in Ireland 2010 (PDF 450KB)
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