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.

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 to 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.

Covid-19

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 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.

Takeaways

Sustainability and Community

While the craft and design sectors play a valuable role in Ireland’s quantitative financial and economic wellbeing, it is important to highlight the further role that they play via less measurable or less tangible benefits to society. Sustainability is one such area, where our contemporary consumer society is increasingly aligned with the focus of craft and design activities to help ensure an ecological balance while maintaining the quality of life in modern societies. Concepts such as slow-fashion, locally-sourced and made, re-use, recycle and re-make can all be linked to the design and manufacture of products complying with a sustainable framework. The term circular economy, based on the principles of designing out waste and pollution, keeping products and materials in use and regenerating natural systems featured prominently in stakeholder consultations while the #MadeLocal campaign was seen as a tremendous success. The sectors also play an equally valuable role in unlocking opportunities through empowering local communities and supporting wellbeing in individuals. DCCI supported the Government’s “Keep Well” campaign during the Covid-19 by encouraging people of all ages and abilities at home to ‘switch off, be creative, and to learn something new’. Such engagement will continue to be a key area of focus for DCCI and the wider sector in the future.

Industry Sentiment Innovation Sector Reporting

Despite the challenges that the Covid-19 pandemic have brought, the overall sentiment of many within the industry is one of positivity. Terms such as ‘vibrant’, ‘potential’ and ‘renaissance were used to describe the craft sector, while there was a suggestion that design has ‘come of age’ in Ireland. New entrants have brought new ideas and the return to Ireland of many skilled craftspeople and designers to establish new enterprises indicates the perceived value and opportunity of the industry and the strength of the Irish brand.

The necessity of the global pandemic has seen a move online has brought new opportunities to showcase products and generate sales through new routes to market, creating further optimism for the future. Innovation is the key to survival for business. It supports business through improving competitiveness via increased productivity, development of new or improved products, processes, services or business models and new markets for those products and services. Innovation also provides a pathway to a more sustainable future both for the economy and wider society. Winning by Design highlighted the relationship between design and innovation, emphasising that ‘innovation cannot happen without design’ while the UK Craft Council found that firms that spend double the average on creative products are 25% more likely to introduce product innovations. Collaboration with creative industries, including craft and design, has a significantly positive impact on innovation within other companies. DCCI should seek to work with relevant bodies and organisations to agree a clear definition as to what constitutes the design and craft sectors. They should then seek to engage with the CSO to explore the opportunity of working together to develop more regular reporting structures to allow for more consistent monitoring of the sectors’ performance and comparability across years. This will enhance the visibility of the valuable contribution made by the sector to Ireland. It will also assist DCCI in identifying key trends at any early stage, thus enhancing the role played by the organisation for clients, and the whole sector.

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