APPENDIX B DATA ON BEST PROSPECTS FOR AGRICULTURE AND INDUSTRY SECTOR EXPORTS A. BEST PROSPECT AGRICULTURAL SECTORS - IRELAND FY 1995 Best Prospects represent agricultural sectors where U.S. exporters can enter the market or increase their market share over the next couple of years. Ranking Title Est Market Est. Total Imports Market Size from U.S. (Metric Tonnes) (Metric Tonnes) NA Corn gluten feed 486,000 420,000 NA Pears 8,300 900 NA Wine (kiloliters) 20,000 900 B. BEST PROSPECT INDUSTRY SECTORS - IRELAND FY 1995 Best Prospects represent industry sectors where U.S. exporters can enter the market or increase their market share over the next couple of years. Ranking Title Est. Total Est. Imports Market Size from U.S. ($ millions) ($ millions) 1. Computers and Peripherals 1,130.0 630.0 2. Electronic Components 2,559.0 539.0 3. Travel and Tourism Services 2,580.0 329.0 4. Industrial Chemicals 1,770.0 160.0 5 Computer Software 605.0 147.0 6. Electrical Power Systems 1,451.0 130.0 7. Medical Equipment 165.0 69.0 8. Drugs and Pharmaceuticals 1,846.0 56.0 9. Building Products 1,985.0 49.0 10. Air Conditioning & Refrigeration Equi 259.0 32.0 11. Process Controls - Industrial 200.0 19.0 12. Telecommunications Equipment 290.0 18.0 13. Pumps, Valves and Compressors 156.0 17.0 14. Household Consumer Goods 485.0 15.0 15. Construction Equipment 233.0 4.4 Notes: (1) Exchange rate used: IP 1.00 equals $1.5 (IP 0.67 equals $1.0) (2) For FY'95, USFCS-Dublin has identified 15 Best Prospects which offer excellent potential for U.S. firms. However, market opportunity is not limited to these 15 sectors. Many other areas offer opportunities for U.S. business, e.g., a good laboratory instruments industry, an emerging biotechnology industry. (3) Market data refer to 1995 (4) Best Prospects are ranked by estimated size of imports from the U.S. ABP1. Corn Gluten Feed: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: B) Name of Sector: Corn gluten feed C) PS&D Code: NA 1993 1994 1995 (metric tonnes) D) Total Market Size: 446,000 466,000 486,000 E) Total Local Production: Nil Nil Nil F) Total Exports: 4,000 4,000 4,000 G) Total Imports: 450,000 470,000 490,000 H) Imports from U.S.: 380,000 400,000 420,000 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: Ireland imports significant amounts of U.S. feed ingredients such as corn gluten feed (CGF) and is in fact one of the largest importers of CGF in the EU. In recent years, imports from the U.S. have declined because of competition from other countries, such as Canada, Brazil, and Argentina, and attempts by the EU to reclassify the product as leviable. Feed importers also continue to require other feed ingredients and opportunities continue for for U.S. exports of oilseed residues, soybeans, citrus pulp grain offals, and by-products of the brewing industry. ABP2. Pears: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: B) Name of Sector: Pears C) PS&D Code: NA 1993 1994 1995 (metric tonnes) D) Total Market Size: 8,000 8,150 8,300 E) Total Local Production: Nil Nil Nil F) Total Exports: Nil Nil Nil G) Total Imports: 8,000 8,150 8,300 H) Imports from U.S.: 500 700 900 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: Given its temperate climate, Ireland must import much of its tropical, citrus, and other out-of-season fruit. As well as the market potential for pears, opportunities exist for oranges, grapefruit, and grapes (particularly in the Christmas period). However, U.S. exporters encounter strong competition from southern EU and North African exporters for this small market. ABP3. Wine: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: B) Name of Sector: Wine C) PS&D Code: NA 1993 1994 1995 (kiloliters) D) Total Market Size: 18,700 19,500 20,000 E) Total Local Production: Nil Nil Nil F) Total Exports: Nil Nil Nil G) Total Imports: 18,700 19,500 20,000 H) Imports from U.S.: 730 800 900 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: The U.S. almost doubled its share of the Irish wine market in 1993. The Irish consumer demands quality and value and is becoming more sophisticated in its wine buying tastes. The majority of U.S. wine imports are from Californian wineries. Irish importers are continuously seeking new quality labels and opportunities exist for wineries/exporters from other U.S. states. IBP1. Computers and Peripherals: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: One B) Name of Sector: Computers and Peripherals C) Industry Sector Code: CPT 1993 1994 1995 (US$ millions) D) Total Market Size: 1,062.0 1,104.0 1,130.0 E) Total Local Production: 3,081.0 3,204.0 F) Total Exports: 3,903.0 4,059.0 4,221.0 G) Total Imports: 1,884.0 1,959.0 2,018.0 H) Imports from U.S.: 596.0 612.0 630.0 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: The Irish computers and peripherals market is very mature. All the major international brands have a market presence. Like most international markets, local computer hardware prices have fallen dramatically in recent years. The substantial user base provides a large future market for computers and peripherals. There is also a strong U.S. manufacturing presence as subsidiaries utilize favorable Irish tax treatment to supply the European market. However, market opportunities exist for U.S. companies seeking distributors in Ireland. Most Promising Sub-sectors: Title Market Size Estimate, 1995 Peripherals $407.0 million Accessories and Parts $271.0 million Complete Systems $181.0 million PCs $169.0 million LAN and WAN equipment $ 56.0 million Printers for PCS $ 45.0 million IBP2. Electronic Components: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: Two B) Name of Sector: Electronic Components C) Industry Sector Code: ELC 1993 1994 1995 (US$ millions) D) Total Market Size: 2,366.0 2,461.0 2,559.0 E) Total Local Production: 1,856.0 1,943.0 2,034.0 F) Total Exports: 783.0 814.0 847.0 G) Total Imports: 1,293.0 1,332.0 1,372.0 H) Imports from U.S.: 508.0 523.0 539.0 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: Electronics is the largest manufacturing industry in Ireland. The presence of major international computer manufacturers such as Apple, AST, Amdahl, Dell, and Stratus has created a lucrative electronic components market locally. Annual growth is forecast to be 4 percent. As only 40% of electronic components are sourced from local suppliers, there are substantial market opportunities for U.S. electronic components suppliers. Ireland also represents a suitable base for penetrating the lucrative European electronics industry. U.S. component manufacturers such as Analog Devices, Intel, SCI and Tellabs have established local manufacturing subsidiaries to penetrate the Irish and European markets. Most Promising Sub-sectors: Title Market Size Estimate, 1995 Integrated Circuits $665.0 million Disk Drives $358.0 million Printed Circuits $205.0 million Semi-Conductors (Other than I.C.s) $179.0 million Resistors $ 51.0 million Capacitors $ 38.0 million IBP3. Travel and Tourism Services: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: Three B) Name of Sector: Travel and Tourism Services C) Industry Sector Code: TRA 1993 1994 1995 (US$ millions) D) Total Holiday Expenditure: 2,278.0 2,457.0 2,580 E) Expenditure on Home Holidays: 963.0 1,011.0 1,062.0 F) Expenditure by Visitors to Ireland: 2,050.0 2,152.0 2,260.0 G) Expenditure by Irish Tourists Abroad: 1,315.0 1,446.0 1,518.0 H) Expenditure by Irish Visitors to the U.S.: 285.0 314.0 329.0 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: About 50% of Irish people take a holiday outside Ireland. In 1993, the number of overseas trips by Irish residents increased by about 3%. The United States is the most popular long-haul holiday destination among Irish tourists. USTTA statistics reveal that Irish visitors to the U.S. increased by almost 11% to 122,000 in 1993. Tourists represent 86% of all Irish visitors, while business visitors account for 13%, with the remaining one percent being student travel. American vacations account for over one third of all Irish tourists foreign holiday expenditure. The very active local Visit-USA committee is organizing the third successive U.S.A. pavilion at the Irish Holiday World Trade Fair in January 1995 (see Trade Event Plan). The participation of the Irish soccer team in the 1994 World Cup saw about 15,000 Irish soccer supporters travel to the U.S. for the event. In Orlando alone, these supporters spent over $26 million. Most Promising Sub-sectors (for the United States): Title Market Size Estimate, 1995 Tourism $283.0 million Business Travel $ 43.0 million Student Travel $ 3.0 million Note: Total Holiday Expenditure is the sum of expenditure on home holidays and expenditure by Irish tourists abroad. IBP4. Industrial Chemicals: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: Four B) Name of Sector: Industrial Chemicals C) Industry Sector Code: ICH 1993 1994 1995 (US$ millions) D) Total Market Size: 1,463.0 1,609.0 1,770.0 E) Total Local Production: 3,064.0 3,291.0 3,535.0 F) Total Exports: 2,292.0 2,406.0 2,536.0 G) Total Imports: 701.0 724.0 760.0 H) Imports from U.S.: 148.0 152.0 160.0 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: The Irish chemical industry has experienced excellent growth in recent years. The industry is very export-oriented with exports exceeding imports by 300 percent. This export orientation is due to the large presence of international manufacturers, including U.S. companies. In addition to a strong manufacturing presence, the United States also has a 21% share of the Irish import market. The strong reputation of U.S. chemical producers in both the Irish and European markets could assist other U.S. manufacturers in achieving similar market penetration. U.S. industrial chemical manufacturers should actively consider utilizing Ireland as a base for penetrating European markets. The availability of highly qualified labor is an influencing factor in selecting Ireland as an investment location. Most Promising Sub-sectors: Title Market Size Estimate, 1995 Organic Chemicals $1,416.0 million Inorganic Chemicals $ 354.0 million IBP5. Computer Software: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: Five B) Name of Sector: Computer Software C) Industry Sector Code: CSF 1993 1994 1995 (US$ millions) D) Total Market Size: 483.0 540.0 605.0 E) Total Local Production: 2,985.0 3,429.0 3,944.0 F) Total Exports: 2,807.0 3,224.0 3,707.0 G) Total Imports: 305.0 335.0 368.0 H) Imports from U.S.: 122.0 134.0 147.0 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: With almost 94% of domestic production sold abroad the Irish software industry is export-oriented. The strong domestic production base, comprised of both major multinational computer hardware and software firms and local software producers, is testimony to IDA Ireland's success in attracting international investment in this industry. U.S. firms account for 75% of this investment with 28 companies, including Ashton Tate, Lotus, Symantec, and Microsoft. Ireland has become a significant world center for software development because of its skilled, highly-educated workforce and sophisticated telecommunications network. U.S. software firms seeking to penetrate the lucrative European software market (forecast to be $155 billion in 1996) should consider entering into joint venture/licensing agreements with Irish firms who have the experience of exporting to EU markets. No market size breakdowns exist for industry sub-sectors at the present time. Industry sources anticipate that such information may be available within the next year. Most Promising Sub-sectors: Title Market Size Estimate, 1995 Financial Accounting Applications Not Available Telemarketing Not Available Multimedia Not Available Banking and Insurance Applications Not Available IBP6. Electrical Power Systems: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: Six B) Name of Sector: Electrical Power Systems C) Industry Sector Code: ELP 1993 1994 1995 (US$ millions) D) Total Market Size: 1,097.0 1,262.0 1,451.0 E) Total Local Production: 763.0 878.0 1,009.0 F) Total Exports: 282.0 324.0 373.0 G) Total Imports: 616.0 709.0 815.0 H) Imports from U.S.: 98.0 113.0 130.0 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: The Electricity Supply Board (ESB), the Irish electrical utility, plans on investing up to $2.1 billion on production facilities, networks, and new systems and services by the end of 1997. This is the largest capital investment program ever undertaken by the ESB. There are also proposals with the Irish government to separate the generation and distribution of electricity within the ESB. Initial suggestions are that the generation of electricity will be opened to all parties while the ESB would retain the rights to distribute electricity throughout Ireland. Most Promising Sub-sectors: Title Market Size Estimate, 1995 Electrical Switch & Protection Apparatus $580.0 million Electrical Boards and Panels $435.0 million Insulated Electrical Conductors $102.0 million Gas Turbines $ 73.0 million IBP7. Medical Equipment: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: Seven B) Name of Sector: Medical Equipment C) Industry Sector Code: MED 1993 1994 1995 (US$ millions) D) Total Market Size: 150.0 158.0 165.0 E) Total Local Production: 504.0 555.0 610.0 F) Total Exports: 526.0 579.0 636.0 G) Total Imports: 172.0 182.0 191.0 H) Imports from U.S.: 62.0 65.0 69.0 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: Annual growth for the medical equipment market reflects projected increases in government health spending. The major market subsectors are consumable products such as medical instruments and disposable medical products. Imports, which constitute almost all of market demand, actually exceed demand as Ireland is used as a distribution point by international suppliers, with local assembly operations, for EC countries. The U.S. dominates the import market with a 36 percent share. Market opportunities exist because Irish distributors are continually seeking new and innovative products. Most Promising Sub-sectors: Title Market Size Estimate, 1995 Medical Instruments $96.0 million Disposable Medical Products $46.0 million Electro-Medical Apparatus $18.0 million IBP8. Drugs and Pharmaceuticals: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: Eight B) Name of Sector: Drugs and Pharmaceuticals C) Industry Sector Code: DRG 1993 1994 1995 (US$ millions) D) Total Market Size: 1,713.0 1,784.0 1,846.0 E) Total Local Production: 2,776.0 3,054.0 3,359.0 F) Total Exports: 1,551.0 1,783.0 2,051.0 G) Total Imports: 488.0 513.0 538.0 H) Imports from U.S.: 42.0 48.0 56.0 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: The Irish pharmaceuticals industry primarily consists of manufacturing firms producing branded drugs. There are also a number of firms producing only generics. There is a strong international manufacturing presence which is dominated by 12 U.S. manufacturing subsidiaries such as SmithKline Beecham, Pfizer, Bristol Myers Squibb, Eli Lily. Most international firms use Ireland as a base to penetrate the lucrative European marketplace. The success of U.S. firms highlights the opportunities for penetrating European markets from Ireland. Within the local market, opportunities exist for U.S. suppliers to capitalize on the strong level of receptivity for U.S. drugs and pharmaceuticals. Most Promising Sub-sectors: Title Market Size Estimate, 1995 Bulk Pharmaceuticals $726.0 million Drugs Medicines & Medicinal Preparations $443.0 million IBP9. Building Products: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: Nine B) Name of Sector: Building Products C) Industry Sector Code: BLD 1993 1994 1995 (US$ millions) D) Total Market Size: 1,800.0 1,890.0 1,985.0 E) Total Local Production: 1,468.0 1,542.0 1,618.0 F) Total Exports: 550.0 578.0 606.0 G) Total Imports: 882.0 926.0 973.0 H) Imports from U.S.: 44.0 46.0 49.0 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: Building and construction investment increased by 1.5% in 1995 due to large increases in private and local authority house completions. The outlook for 1994 is very positive as building and construction investment is forecast to increase by 5 percent. The building materials market is very open towards imports (50% of total market demand) because about half of the import categories are not manufactured in Ireland. U.S products have consistently held the position of fifth largest supplier to this market in recent years. Most Promising Sub-sectors: Title Market Size Estimate, 1995 Electrical Products $377.0 million Wood and Lumber $218.0 million Boards and Panels $159.0 million Paints and Varnishes $119.0 million Floor and Wall Coverings $ 99.0 million Carpentry and Joinery $ 79.0 million Heating Products $ 40.0 million Timber Framed Housing $ 32.0 million IBP10. Air Conditioning and Refrigeration Equipment: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: Ten B) Name of Sector: Air Conditioning & Refrigeration Equipment C) Industry Sector Code: ACR 1993 1994 1995 D) Total Market Size: 214.0 235.0 259.0 E) Total Local Production: 377.0 415.0 456.0 F) Total Exports: 287.0 316.0 347.0 G) Total Imports: 124.0 136.0 150.0 H) Imports from U.S.: 26.0 29.0 32.0 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: The Irish air conditioning and refrigeration market has a substantial number of end user groups including food processing companies, retail supermarket outlets, electronics manufacturers, and the general business environment. The air-conditioning market sub-sector offers sales opportunities as growth is projected to be 10-15 percent thru 1994. U.S. manufacturers are perceived to be very strong in the large air-conditioning equipment market. Ireland also represents an attractive manufacturing and distribution location for U.S. producers seeking to penetrate the European air-conditioning and refrigeration market. The local Thermo King transport refrigeration subsidiary, for example, is achieving excellent success in the European marketplace. Most Promising Sub-sectors: Title Market Size Estimate, 1995 Refrigerators, and Freezers $124.0 million Air Conditioning Equipment $ 78.0 million Compressors $ 57.0 million IBP11. Process Controls - Industrial: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: Eleven B) Name of Sector: Process Controls - Industrial C) Industry Sector Code: PCI 1993 1994 1995 D) Total Market Size: 187.0 194.0 200.0 E) Total Local Production: 160.0 165.0 170.0 F) Total Exports: 53.0 54.0 56.0 G) Total Imports: 80.0 83.0 86.0 H) Imports from U.S.: 18.0 18.5 19.0 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: Process control instrumentation are an integral element of Irish manufacturing processes. The principal end-user segments are the chemical, pharmaceutical, food processing, gas and power generation industries. Within the food processing industry, 83% of installations use computer technology. Among these companies, process control is the most common application with 87% of companies stating this usage. The pharmaceutical sector has 40 international manufacturing subsidiaries. There is an estimated replacement cost of $3.3 billion on capital investment in this sector. More significantly, upwards of $125 million is reinvested annually by local pharmaceutical firms. Most Promising Sub-sectors: Title Market Size Estimate, 1995 Programmable Logic Controllers $50.0 million Control Valve Systems $48.0 million Pressure Gauges $28.0 million Thermostats $24.0 million IBP12. Telecommunications Equipment: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: Twelve B) Name of Sector: Telecommunications Equipment C) Industry Sector Code: TEL 1993 1994 1995 (US$ millions) D) Total Market Size: 239.0 263.0 290.0 E) Total Local Production: 285.0 314.0 345.0 F) Total Exports: 229.0 252.0 277.0 G) Total Imports: 183.0 201.0 222.0 H) Imports from U.S.: 15.0 16.0 18.0 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: The telecommunications network is controlled by the State telecommunications body, Telecom Eireann. After France, Ireland has the most modern telephone system in Europe. There are about one million telephone lines on the public network. Eircell, the public mobile telephone network, has over 45,000 subscribers. There are about 45,000 fax terminals in Ireland. While the supply of all terminal equipment is deregulated, all products being connected to the public network must have approval from the Irish Department of Transport, Energy & Communications. The current level of digitalization is 70%. Continued modernization of the Irish telecommunications system requires annual investment of about $225 million. The advent of a second cellular network in Ireland will offer excellent opportunities to U.S. cellular network and equipment providers. Most Promising Sub-sectors: Title Market Size Estimate, 1995 Telephonic, Telegraphic Equip $215.0 million Data Communications $ 35.0 million Cellular Telecomm. Equip $ 20.0 million Fiber Optics $ 9.0 million IBP13. Pumps, Valves, and Compressors: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: Thirteen B) Name of Sector: Pumps, Valves and Compressors C) Industry Sector Code: PVC 1993 1994 1995 D) Total Market Size: 137.0 146.0 156.0 E) Total Local Production: 133.0 140.0 147.0 F) Total Exports: 109.0 115.0 120.0 G) Total Imports: 113.0 121.0 129.0 H) Imports from U.S.: 15.0 16.0 17.0 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: Within Ireland, there is an extensive end user base for pumps and valves encompassing the chemical, pharmaceutical, agriculture, food processing, and electronics industries. Most of these end users have a need for modern pump and valve technology as they operate highly automated production processes. There is strong interest in modern pump technology from the United States. Most Promising Sub-sectors: Title Market Size Estimate, 1995 Valves $80.0 million Pumps $73.0 million IBP14. Household Consumer Goods: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: Fourteen B) Name of Sector: Household Consumer Goods C) Industry Sector Code: HCG 1993 1994 1995 (US$ millions) D) Total Market Size: 440.0 462.0 485.0 E) Total Local Production: 369.0 387.0 407.0 F) Total Exports: 192.0 201.0 212.0 G) Total Imports: 263.0 276.0 290.0 H) Imports from U.S.: 13.0 14.0 15.0 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: Growth in the household consumer products market corresponds with trends in consumer spending; 1992 (3%), 1993 (1.75%). In 1994, consumer spending is forecast to grow by about 4 percent. the positive economic outlook for the country until the end of the century should lead to positive consumer spending growth in the same period. Imports hold a 44% share of the market. In recent years U.S. products have achieved a 5% share of the import market. With a young growing population and 80% of homes privately owned, this market represents long term growth potential. Most Promising Sub-sectors: Title Market Size Estimate, 1995 Domestic Electrical Appliances $276.0 million Ceramic Products $ 63.0 million Hand Tools $ 58.0 million Metallic Cookware $ 24.0 million Plastic Housewares $ 19.0 million Lawn Mowers $ 17.0 million IBP15. Construction Equipment: COUNTRY: Ireland Date of Report: FY'95 CCG A) Rank of Sector: Fifteen B) Name of Sector: Construction Equipment C) Industry Sector Code: CON 1993 1994 1995 (US$ millions) D) Total Market Size: 176.0 202.0 233.0 E) Total Local Production: Nil Nil Nil F) Total Exports: Nil Nil Nil G) Total Imports: 176.0 202.0 233.0 H) Imports from U.S.: 3.6 4.0 4.4 I) Exchange Rate (USD/IEP): 0.67 0.67 0.67 Comments: The Irish construction industry continued its slight recovery in 1993 with growth of 1.5% in building and construction investment. Early forecasts for 1993 project a large 5% growth in investment. Long term growth will be underpinned by EU Structural Funding for the Ireland National Development Plan, 1994-1999. This plan contains proposals to to further develop Ireland's transportation and environmental infrastructure. Imports equate to total market demand because there is no domestic production. Trade statistics misrepresent the prominence of U.S. products. For example, Caterpillar's Irish distributor sources 90% of their equipment in Belgium, with only 10% imported direct from the United States. Most Promising Sub-sectors: Title Market Size Estimate, 1995 Excavating Machinery $147.0 million Construction Vehicles $ 74.0 million