Business Technology

Wednesday 27 August 2014

Information and communications firms spending more on wages

Colm Kelpie

Published 25/03/2014 | 02:30

  • Share

COMPANIES in the information and communications sectors increased the amount they spent on pay by just over 8pc a year in the decade up to 2012, a new survey shows.

  • Share
  • Go To

This far outstripped the manufacturing sector, where wage-related payments rose just 0.5pc per annum over the 10 years, according to the study by the State's policy advisory board on enterprise, Forfas.

The annual Business Survey of Economic Impact also found that total sales by companies supported by the State's enterprise agencies such as the IDA and Enterprise Ireland totalled €157.14bn in 2012 – up 4.4pc from the previous year.

Companies reported both a rise in sales and exports in 2012, with direct expenditure in terms of pay and buying supplies produced here jumping 3.8pc to about €40.8bn.

Martin Shanahan, Forfas chief executive, said the firms were making a significant contribution to the economy.

"Data for the most recent full year available, 2012, show that it was a successful year overall for enterprise agency client companies with increases in all the main economic indicators," he said.

"These figures demonstrate the significant and positive contribution that both indigenous exporting companies and foreign-owned companies are making to the growth of the Irish economy."

About 4,000 firms were surveyed in total, with a response rate of around 64pc. Field work was carried out in the first half of last year.

The survey found that the total amount paid by Irish-owned manufacturing and information, communications and other services firms on payroll, which include taxes, etc, was about €5.62bn in 2012.

The report said payroll in the manufacturing sector and the information, communication and other services sector increased by 0.5pc and 8.3pc per annum respectively between 2003 and 2012.

The information, communication and other services sector includes the publishing, broadcasting and telecommunications sector, consultancy, IT, and financial services.

Other key findings from the report include:

* Total exports amounted to €138.38bn in 2012, a 5.1pc increase over 2011 exports worth €131.6bn. Exports by Irish-owned client companies increased by 5.8pc to €14.23bn while foreign-owned firms' exports increased by 5pc to €124.14bn between 2011 and 2012.

* Foreign-owned client companies in the information, communications and computer services sector accounted for 45pc of export sales in 2012 at €56.14bn. Export growth in foreign-owned client companies grew by 13.5pc between 2011 and 2012, with an increase of 19.4pc in Irish-owned companies in the same time period.

Irish Independent

Read More

Editors Choice

Also in Business