The Celtic Tiger will roar once more
May 1st 2009

Steve Ruddell general manager of ABB drives & motors explains why he remains hopeful about the Irish economy and what his plans are for the ABB in the Irish drives market

Ireland's economy was booming until last year when it was hit with the most "profound global economic crisis in seventy years," due in large part to a significant decline in the housing and construction markets, according to the government's web site.

Ireland's economic miracle was formulated some 20 years ago, with policies that chopped taxes in half, sharply reduced import duties and embraced foreign investment — a radical transformation that gave birth to the Celtic Tiger and perhaps the most open and vibrant economy in Europe.

But today, the Celtic Tiger has passed away. A clear indication is the fact that many of my competitors are packing their bags and moving out of Ireland. So, why, I hear you ask, am I excited about the future of Ireland? Why is it that ABB's drives and motors business is so keen to increase our presence and continue to invest in Ireland? The reason why I am a believer in this fantastic country can be found in a new book produced by Dr Robert E Kennedy, head of business administration at the University of Michigan, in which he predicts that Ireland's economy will bounce back from the credit crunch and start to outperform its major European rivals over the next 10 years.

This surprisingly upbeat assessment of Ireland's economic prospects predicts that growth rates will be higher than the economies of main competitors such as Germany and France.

The Irish economy's openness to trade, a high degree of flexibility, a business-friendly regulatory environment and a skilled workforce has not been lost as a result of the global financial crisis, but the unprecedented international economic shock has come at the same time as the Irish economy's necessary rebalancing.

Despite the economic slowdown, there are still policies on the table that need addressing. Carbon emissions reduction and the overall reduction in energy consumption are primary government concerns and immediate challenges for industry.

But clearly the economy is stagnant and so for the next few years our growth in Ireland will not be based on organic growth of the market. It will be achieved by taking market share from those competitors who are disillusioned with this market. As these competitors lose focus and withdraw we will increase our presence and recruit to increase our "feet on the street".

A cornerstone for success in any drives and motors business is a strategic technical distributor network.We intend to extend the very successful global ABB Drives Alliance and ABB Motors Service Partners networks into Ireland.We have already appointed several key players including ACS Drives in Mullingar, Campbell Electric Motors Ltd. in Dublin and JJ Loughran Electric Motor Company in Cookstown However, we are not stopping there.We intend to investigate all routes to market from wholesalers through to dedicated industry distributors. Quite simply, we will have the most complete range of drives and motors available on your doorstep.

No single drive or motor manufacturer dominates any sector in Ireland today and we are also keen to focus on selected sectors where ABB has a wealth of knowledge and experience including, but not limited to, pharmaceutical, HVAC, food & beverage and water. All of these sectors have the same basic demands: increase reliability and reduce energy costs. It is here where ABB drives and motors can really deliver.

Even though the construction sector is at the heart of Ireland's economic demise, the Irish government is still investing in hospitals and schools and so the opportunities for drives and motors within HVAC solutions are immense. Coupled with the government's interest to reduce energy and lower the environmental impact of carbon dioxide emissions, then we believe our future is clear in Ireland.

Underpinning our strategy of technical distributors; dedicated focus on industry segments and new channels to market is impeccable customer service. Customer service begins locally.We aim to have the most thorough field service engineer network backed up by ABB's unparalleled global service organisation.

So where will all this take us? Within four years I believe we can double our current turnover. This should make us the clear market leader in Ireland for drives and motors.

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