Forfás released it’s Annual Business Survey of Economic Impact for 2008 today. The survey takes a statistical snapshot of economic activity of sectors, Irish firms and foreign firms over several years and it makes for very interesting reading. The data is based on firms that deal with Enterprise Ireland, the IDA, Shannon Development and Údarás na Gaeltachta.

The overall numbers nabbed from the report, starkly show the bite of the recession on Irish firms from 2007 to 2008:

And foreign firms:

Foreign-owned firm fared a little better in manufacturing sales, exports and value-added activity, yet direct expenditure to the Irish economy dropped. Those that operated in the services sector was badly hit too. This is possibly a nod at the meltdown of international banking and financial services melting down world-wide.

Some interesting findings:

• Irish manufacturing and services companies made sales of just over €31B in the year 2008. A tiny bump of 0.7% year-over-year contributing an annual average of 3.9% from 2000-2008. Easy to see the massive drop here.
• Modern manufacturing, energy and information & communications systems were positive sectors for sales by Irish firms in 2008. While sales in legacy sectors like food & drink or traditional manufacturing shrank by 0.4% and 4.2% respectively.
• Looking at food & drink sales by foreign firms in Ireland, their sales grew by 22%. Alarm bells!
• In terms of payroll costs, the average salary of a worker in the survey in an Irish firm was €45,200. This constituted an increase of 6.1% over the surveyed period of 2000-2008

How is it that foreign firms can grow so healthily in the food & drink sector, yet Irish firms struggle?

Photos: forfas.ie