Role of Local Authorities in enabling Economic Development: The Waterford Crystal Story Michael Walsh Waterford City Council
History of Glass Making in Waterford City – Phase 1 • 1783 Penrose Bros establish glass works, employing 50-70 • 1830s – Irish glass industry in terminal decline • 1851 – Waterford glass exhibited at Great Exhibition, Crystal Palace • Waterford established as a quality brand and collectors item • 1851 –Waterford glass closes - unable to attract capital investment
1851 Great Exhibition, London
History of Glass Making in Waterford City – Phase 2 • 1947 – Charles Bacik establishes new facility in Ballytruckle on site provided by Waterford Corporation • 1950 – Irish Glass Bottle Co Ltd takes over and builds new facility in Johnstown • Waterford Crystal exported to America, Great Britain, Bermuda and New Zealand
Ballytruckle Manufacturing Facility
History of Glass Making in Waterford City – Phase 2 • 1962 – 600 employees • 1967 – Kilbarry factory opened – 40 acre site – 2,000 employees
• 1971 – Dungarvan plant opens
Waterford Crystal • 1987 – Waterford Crystal and Wedgewood merger • At its peak: – 3,000+ employed – 380,000 visitors – Leading tourist attraction Waterford Crystal, Cork Road
Waterford Crystal – End of an Era • 1990s –outsourcing commences • 2000 onwards – Job losses – Short time – Pay freezes
• 2009 closure – – – –
800 direct job losses Impact on local economy Threat to tourism market Receiver appointed
Scenes following the closure
Salvage from the Wreckage • 2009 – Local stakeholders group established to find a solution – ‘Fewer Group’ • Non Prestige Manufacturing no longer viable • Full range of options explored • Venture capitalists (KPS) acquire WWRD brand
Salvage from the Wreckage • Solution identified – City centre location for combined manufacturing, visitor and retail to ensure sustainability – Prestige manufacturing – Tourism as an economic driver – Catalyst for city centre regeneration in tandem with ‘Viking Triangle’ – State investment necessary
House of Waterford Crystal Before renovations
Salvage from the Wreckage • The process – 2009 tender for capital works – Refurbishment former ESB to house HOWC and Civic offices – Refurbishment of Bond Store for manufacturing facility – Car park works to accommodate coach parking – Project completed on time and on budget
• June 23rd 2010 House of Waterford Crystal flagship showrooms officially opened
House of Waterford Crystal Official Opening
Salvage from the Wreckage • Other positives – 188 currently employed by HOWC – 200 jobs created during construction phase – New landmark building for Waterford City – Retention of Waterford Crystal brand will contribute to tourism as an economic driver – Stakeholders working together and ‘doing it for themselves’
• Project funding – WCC
€10.7m
– ERDF – Fáilte Ireland
€2.7m €0.75m
– Total Funding
€14.2m
The Viking Triangle • Master Plan developed – Bishop’s Palace completed June 2011 – Chorister’s Hall opening Summer 2012 – Cathedral Square premises acquired – Relocation of Tourist Office – CEO to be appointed
1,000 years of history in 1,000 paces
Why? • Protect Brand Waterford and City Heritage • Historical role • No one else could – Tourism as an economic driver – Enhancing City’s reputation
• Evolving role of the local authority – Economic Promotion – Business Support Units