Accelerating cross-border trade

Acumen is an inter-regional business development programme set up in 1992 to stimulate economic development in the border regions of Ireland. It helps smaller companies to overcome the barriers between north and south which, up to now, have acted as a deterrent to cross border trade. Acumen supports these manufacturing and service companies through external consultants, management support, sales advice, salary support, company development workshops and one-to-one counselling. The success of the scheme has been due in part to the strong commitment of mainstream development agencies from both sides of the border, which bring on board a wide range of associated groups and organisations. This has also been eased by a more positive political climate, which has brought more business confidence. Clearly, Acumen needs to provide equal support to companies on both sides of the border in order to be credible and effective. But this was difficult to achieve at first - the Republic of Ireland provided a greater opportunity for Northern Irish companies as the Irish economy has been buoyant and transport was cheaper and more convenient there. Meanwhile SME's in the south remained apprehensive about the Northern market because of the unsettled political climate. Although still fragile, the improved climate has led to more investment and trade. Meanwhile Ireland's entry to the Euro means that there is an even larger gap between Sterling and the Punt - giving added financial incentive to companies from the Republic to trade with the North. To date the Acumen Phase III has supported 152 assignments, of which 98 are completed and 45 are currently running. Positive outcomes are resulting from the companies involved - in 1999 a 28% sales increase and a 24.8% increase in jobs created was recorded. Acumen has put particular effort into increasing awareness of its objectives. The most significant communication initiative has been a 50 minute documentary produced by RTE (Ireland's Television Network) on the Acumen Programme. Broadcast in February 2000 it leads to the launch for Acumen IV, where the stronger businesses will be taken to the next stage of their growth cycle in cross border trade. Shabra Plastics is a medium sized company in Carrickmacross Co. Monaghan, only 15 miles from the border with Northern Ireland. It was set up in 1983 to produce, print and supply plastic bags and has grown from modest beginnings into a successful business dealing with local and multinational organisations in the hygiene and catering trades. By 1997, its managers were aware that despite the versatility of the plastic product it was increasingly under attack from environmentalists and so they decided to branch into recycling, choosing a site in neighbouring Castleblaney, only 2 miles from the border. At this point Shabra was doing no business in Northern Ireland. Acumen assessed the company and found that it would benefit from a full time sales development person to promote interest in their initiative in the North. Shabra chose a candidate from South Armagh and Acumen agreed to fund 50% of the salary for the first year. Acumen also offered support with advice and business introductions. Shabra now sells in excess of 20% of its product in Northern Ireland and net profit has risen from � 253,947,616 million in 1997 to � 380,921,424 million in 1999. The operation is capable of serious expansion and the management has forecast further growth over the next few years due to the opening of the market to the north.

Last modified on January 2001