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Economy CORK CITY PROFILE 2018 SECTION 02 ECONOMY

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Economy CORK CITY PROFILE 2018 SECTION 02 ECONOMY 02 Economy CORK CITY PROFILE 2018 SECTION 02 ECONOMY 16 - At the time of the 2011 census Ireland was in the middle of recession. The nation’s debt stood https://www.pwc.ie/services/ at 120% of annual output, there was a 15% unemployment rate and the country was locked tax/fiscal-focus/fiscal-focus-in- sights/2016-fiscal-focus-econom- out of international capital markets. Between 2011 and 2016 indicators suggested substantial ic-health-check-for-ireland.html. economic improvement. Employment levels, earnings and personal consumption increased.16 17 - In March 2018 OECD research indicated that the Irish economy will continue to expand A tightening labour market is when unemployment is falling, thereby over the next two years, albeit at a more sustainable rate. The labour market is projected to reducing job vacancies and increas- tighten17 further to an unemployment rate of around 5.5%, raising consumer prices by more ing wages. than 2% in 2019. This will lead to slowing of household consumption, while rising property 18 - prices are expected to continue to drive private construction development. For more information please see: http://www.oecd.org/eco/surveys/ The OECD research indicates that the economy will be greatly helped if Irish firms are Ireland-2018-OECD-economic-sur- vey-overview.pdf. supported to increase their productivity. This research recommends an increase in the level of access young firms have to development funding.18 19 - Carried out every 5 years since the The OECD report highlights comparatively low employment levels amongst young low 1970s (apart from 1991). Response rate in 2016 was 95%. educated persons in Ireland and recommends connecting social benefits to well-enforced job search requirements. The OECD report also highlights comparatively higher gender inequalities in the national employment profile. CORK CITY’S BUSINESS ECONOMY In 2016 every business in Cork City was invited to participate in the Employment and Land Use Survey.19 Results show that between 2011 and 2016 job growth increased by 9.3% across the city (an average of 1,333 new jobs per month) and that growth was 8.4% higher in the city than the State. Employment change and growth in Cork City differs significantly throughout the city. The following map of the six geographic sectors of the city: Figure 14: . SIX GEOGRAPHIC SECTORS IN CORK CITY'S ADMINISTRATIVE AREA (SOURCE: EMPLOYMENT AND LAND USE SURVEY 2016) Farranree Glanmire Mayfield Knocknaheeny North East North West Tivoli Sunday's Well City Centre South Docks Blackrock Carrigrohane Glasheen Mahon South East South West South Central Ballyphehane Togher Rochestown Douglas Doughcloyne 0 1 2 Kilometers 79 CORK CITY PROFILE 2018 SECTION 02 ECONOMY 20 - Less than 11% of the total job growth between 2011-2016 in the city occurred in the city centre. As they employ less than 10 people. The majority of new jobs, over 86%, (5,774), were created in the city’s South West and South East sectors. New jobs in the city’s North West and North East sectors accounted for less than 12% (740 jobs) of the overall growth rate. While the 2016 Labour Market Survey (CSO) showed growth of just 11% in the city centre, it is likely that this trend will continue to see a major shift as companies are increasingly looking to locate in city centres. The area of new office space in the city centre since that time, both completed and occupied and under development, is useful. Recent and current development of premium office space in the city centre include: » 25,300 m2 completed (One Albert Quay and Capitol) » 36,820 m2 under construction (Navigation Square and 85-86 South Mall) » 65,000 m2 approved (Horgan’s Quay and Copley Street) The businesses in One Albert Quay currently employ 950 (capacity 1,400). The Capitol is home to 200 employees (capacity 350). Phase One of Navigation Square and 85-86 South Mall are both fully let. The five largest employment sectors in the city are; Human Health and Social Work Activities (17%); Retail (13%); Administrative and Support Service Activities (11%); Education and Professional (9%) and Scientific and Technical Activities (9%). The survey used an indicator called a ‘Location Quotient’ (LQ) to measure the city’s specialisation in a particular sector relative to the State. LQ results show that Cork City ‘specialises’ in Administrative and Support Services, Professional, Scientific Activities, Public Administration and Defence, Human Health and Social Work, Information and Communication, and Education. Administrative and Support Service Activities saw the greatest expansion in employment from 2011 to 2016. Most businesses in the city (74%) are described as ‘micro enterprises.’20 They employ an average of 4 people, which is 15% of the city’s workforce. These businesses are mainly Retail but span all economic sectors and almost half are in the centre of the city. 19 organisations employ over 500, a total of 27,000 people (35%) of the city’s workforce. These businesses are mainly located in the South West of the city but are also found in all six sectors. The Local Enterprise Office Cork (LEO), acts as the first stop shop for business, and provides a range of services and supports for micro and small enterprises in Cork City. In 2017 alone, the LEO Cork City approved grant aid of €519,562 to 37 companies, as well as delivering over 60 training and networking events for 821 businesses. 240 owner/managers availed of mentoring and business advice clinics and 32 companies of the Trading Online Voucher Scheme which supports businesses in driving their online marketing and sales presence. 80 CORK CITY PROFILE 2018 SECTION 02 ECONOMY As part of its remit the LEO Cork City continues to drive awareness of entrepreneurship through programmes such as the second level Cork Schools Enterprise Programme aimed at Transition Year students and Ireland’s Best Young Entrepreneur (IBYE) for individuals aged 18 to 35. Other supports, such as the Lean for Micro and Technical Assistance Grant for Micro Exporters (TAME), are delivered to prepare companies and build resilience to mitigate for the impact of Brexit. Currently the LEO also manages two EU Projects aimed at Food and Digital Start Ups in order to increase the level and number of export businesses. In February 2018 Cork Urban Enterprises Clg. (CUEL) submitted an application to Enterprise Ireland’s Regional Enterprise Development Fund and was approved €700,000 towards the upgrade of Ballyvolane Enterprise Centre, now known as the “Northside for Business Campus.” Over the next three years CUEL will oversee the development of the campus and a full suite of capability building programmes to drive enterprise and innovation on the north side of Cork City. The centre will also host the National Family Business and Succession Planning Programme, which aims to ensure the survival and growth of the many family businesses we have, not just in the Cork Region, but nationally. Table 45: Employers with Over 500 Staff (Source: Cork City Employment and Land Use Survey, 2016) Organisations Abtran HSE Bon Secours Hospital Alcon Technology Ireland Ltd HSE Cork University Hospital Apple (3 locations) HSE Mercy Hospital Boston Scientific (Cork) Ltd HSE Saint Finbarr’s Hospital Cope Foundation (Middle Glanmire Road) HSE South Infirmary-Victoria University Hospital Cork City Council Musgrave’s Retail Partners Ltd Cork County Council Starwood Hotels and Resorts Cork Institute of Technology The Defence Forces EMC University College Cork VoxPro Since 2011, 636 new businesses have started to trade in Cork City, most of them in the Retail and Accommodation/Food Service sectors. The industries associated with the highest job numbers created, however, have been in Information and Communication and Professional, Scientific and Technical sectors. 81 CORK CITY PROFILE 2018 SECTION 02 ECONOMY 2.1 Cork City Economic Initiatives CORK CITY CENTRE THE CITY CENTRE STEERING GROUP The City Centre is the ‘Healthy Heart’ of Cork, essential This group is made up of the senior management of Cork to the well-being of the wider region and the country as a City Council and focuses on the implementation of the whole. It is also the city’s front window, playing the central Cork City Centre Strategy. The City Centre is separated role in its economic, social and cultural identity. The city into six character areas or quarters with a member of senior creates a network where economic activity prospers and management responsible for a specific area along with communities work together to inspire and enable Cork to an area planner. further itself. It is this combination and interaction between people and place that is the critical element to the success of urban life in our city. CITY CENTRE FORUM Recognising this, the Cork City Centre Strategy (2014) The Forum is an important operational element of the sets out clear aims to revitalise the City Centre through process and has developed practical projects. Action plans improvement and development, better management based and progress reports are produced each year to help realise upon a partnership of key stakeholders, and increasing these aims. All progress is based on collaboration between the marketing of the City Centre’s offer. Building on the the people who work and live in Cork, who are proud of Strategy’s aims, three new groups were formed and are their city and want to make it an attractive, prosperous and actively working to ensure that opportunities are maximised welcoming place.21 and the City Centre achieves and hopefully surpasses its A key instrument in the Economic Development Unit in enormous potential: Cork City Council is the Economic Development Fund (EDF). The EDF was set up (1% of rates, which is approximately CORE PARTNERSHIP €600,000) in 2012 and builds on the significant work in areas such as energy, innovation and telecommunications.
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