Top 5 Most Brexit Exposed Sectors
According to a special analysis undertaken by the Department of Finance, the five sectors in Ireland most exposed to Brexit and the fall in Sterling put on 94,000 people. Aside from the pharmachem sector, the greater number of companies involved are low profit and largely based outside Dublin, whereas many are SMEs.
Pharmachem, food and beverage, traditional manufacturing, materials manufacturing and electrical equipment are the most unguarded sectors. The department's analysis they have a relatively large share of employment based outside of Dublin, which have almost 80 percent of jobs in the foods and drinks sector in the regions.
Found in the border regions are the open sectors which have the highest share of total employment. Firms in this sector generally rely on UK sales for a bulky 9 to 13 percent of total turnover.
Yearly exports in goods and services with the UK amounting to about €34 billion, or 17 per cent of Irish exports, the document said. Thus, UK remains the largest single market for Irish exporters, although confidence on it has fallen from the early 1970's, it was when UK accounted for more than exports of 50 percent.
Yet, Michael Noonan, minister of finance, said in his budget speech that up to 40 percent of all exports by primitive firms go the UK market.
He further said that over €1.2 billion of goods and services are exchanged between us on a weekly basis on budget today. He reiterated that this trade provides 400,000 jobs, split evenly between the two islands, with a lot more in the supply chain.
UK accounts for important share of overseas sales in computer services and insurance/fiscal services in the service sector. Tourism is another key unguarded sector that has about 40 percent of trips to Ireland are ventured by UK residents.
As a source of imports, UK is important to Ireland. With almost 30 percent of merchandise imports and 17 percent of all imports that originates from UK. It is also a chief source of the so called intermediate goods. In some other instances this will protect Irish companies, as they will be able to buy these inputs cheaper in sterling terms.
On the other hand, it can also a point of complications caused by the disruption to complex supply chains typical in modern businesses. It is transparent that there is no definite tariffs to be applied on imports from the UK in future, but some are possible in the event of a "hard" Brexit.
With access to Revenue Commissioners data, the department was able to estimate that "the mainly indigenous exposed sectors in manufacturing show relatively low levels of profit, same as services sector of tourism".
In terms of service export profits are dominated by the pharmachem sector on the goods side and the both of whom will have more room for maneuver financially.