An increase in employment at companies operating on the Shannon Free Zone has been recorded for the first time in four years.
Figures just released by Shannon Development show that the Free Zone recorded a net gain of 32 jobs with the creation of 499 jobs and loss of 467 during 2012.
It is the first time since 2008 that the regional development agency has recorded a net jobs gain, and a spokeswoman said “the agency is optimistic the Shannon Free Zone has turned a corner”.
Ironically, the return to net jobs growth comes after the Government has decided to remove the job promotion functions from Shannon Development as part of the restructuring of Shannon Airport.
The spokeswoman said: “Given the adverse global economic climate the company is encouraged by the growth at Shannon Free Zone, which was also reflected in the indigenous sector there. Over the past three years indigenous jobs at the Free Zone have increased by over 12% from 953 to 1,076.”
Shannon Free Zone is home to over 100 companies, employing over 7,700 and generating over €3bn in annual sales, 94% of which are to export markets. It is one of the largest multi-sectoral business parks in Ireland.
The net gain of 32 follows a net jobs loss of 174 in 2011 — a positive swing of 206. The zone recorded a net job loss of 254 in 2010 and 787 in 2009.
The spokeswoman said: “Considerable progress was made on marketing the zone to potential overseas investors in 2012. During the year Shannon Development succeeded in securing 23 itineraries from prospective new clients for the Shannon Free Zone, ten of which were generated in partnership with IDA Ireland.
She said: “Despite the economic downturn, Shannon Free Zone continues to be a strong revenue generator for the local economy.” Companies based at the Free Zone contribute over €620m to the Irish and Shannon region economies annually in areas such as staff payroll, materials and services.
As part of the restructuring of Shannon Airport, the airport and Shannon Development are to be formally merged later this year with the airport having the benefit of Shannon Development’s annual rent roll. Latest figures show that the company had a rent income of €12 million in 2011.
The cost per job created at companies assisted by Shannon Development in 2011 came to €16,139 which was the highest of the Irish enterprise agencies. The IDA’s cost per job was €14,202 while the figure for Enterprise Ireland was €12,024.
