Takeaways Economic Impact The Craft and Design-Intensive industries make a significant contribution to Ireland’s economy. 18,000 enterprises directly employ 54,000 employees, generate €8.3 billion in turnover and €2.9 billion in GVA pre-Covid. This amounts to 0.4% of Ireland’s turnover and 1.25% of total business sector GVA in 2018 terms. Design plays an important role in other sectors. ‘Design in Other Sectors’ contributed a further €48.5 billion in turnover and €17.7 billion in GVA, an increase from €5.1 billion in 2012. A further 51,000 people are employed in these Design activities in other sectors. Combined, all three sectoral definitions referenced in this report combine to contribute almost €53 billion of turnover and €20.6 billion in GVA, supporting 105,000 roles. This makes it equivalent to the information and communication sector (107,256) and not much smaller than the construction sector at 144,521. As a result, if considered to be one sector it would be the 8th largest in Ireland and would be equivalent to 6.7% of Ireland’s total business turnover of €794.7 billion in 2018. according to Business in Ireland 2018.
Growth The sectors have only now recovered to pre-2012 levels, indicating that, as with many other industries, it has been a long road back to where they were almost a decade ago, particularly in the Craft sector. Forecasts for a post-Covid recovery suggest that strong pent-up consumer demand will see a quicker bounce back. Analysis of economic growth projections indicates that the sectors could provide up to 100,000 employees and turnover of almost €14 billion by 2026. However, this growth can only be achieved through ensuring that the current supply shortage of skilled Craftspeople and Designers is addressed.
Covid-19
Brand Ireland The sectors’ influence is not limited to purely an economic contribution. Craft and Design are at the heart of global or ‘Brand Ireland’, enhancing Ireland’s attractiveness as somewhere to live, work and visit, and providing the country with a competitive advantage. They do so by showcasing the creative, innovative and entrepreneurial aspects of our people and combining the protection of old and development of new ways of sharing our enduring cultural heritage with the world. Ireland’s “brand value” was estimated to be $604 billion in 2019 by a report from Brand Finance, making it the fastest growing nation brand in Western Europe, 26th globally, and 2nd on a per capita basis.
As with all sectors, Craft and Design-Intensive businesses have been significantly impacted by the Covid-19 epidemic. 52% of survey respondents saw a year-on-year loss, combining to an estimated €1.6 billion turnover reduction. This is approximately 25% lower than in 2019. Approximately 4,000 roles have been lost during the pandemic. While the loss of tourists and general consumer footfall has hit consumer-facing businesses particularly hard, some have taken the ‘opportunity’ to embrace online sales channels, which are expanding market reach.
Economic Impact Assessment of the Design and Craft Sectors in Ireland
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