Offaly County Development Plan 2021–2027 (as varied) — Chapter 5: Economic Development Strategy

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   Offaly County Development Plan 2021-2027 Chapter 5 Economic Development Strategy Page 161 Chapter 5: Economic Development Strategy 5.1 Aim That Offaly County Council, within its capacity, will positively contribute towards the promotion of the maintenance and growth of employment across every sector in County Offaly that is sustainable, competitive, inclusive and resilient, so that the people of Offaly will have access to a range of quality employment opportunities enabling them to live and work in the county. This section is prepared in the context of the following documents: • Project Ireland 2040: National Planning Framework (2018) • National Development Plan 2018-2027 • Regional Spatial and Economic Strategy (RSES) for the Eastern and Midland Region (2019) • Food Wise 2025: A 10 Year Vision for the Irish Agri-Food Industry (2015) • Offaly Local Economic and Community Plan 2016-2021 • Enterprise 2025 Renewed (2018) • Realising Our Rural Potential (2017) • Midlands Regional Enterprise Action Plan 2019-2020 • National Policy Statement on the Bio-economy (2018) • National Mitigation Plan (2017) • Climate Action Plan 2019 • National Broadband Plan (2012) • Offaly Digital Strategy (awaited) • National Social Enterprise Policy for Ireland 2019-2022 • Just Transition Progress Report 2020 • Powering the Regions, Enterprise Ireland Regional Plan Report, 2019

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   Offaly County Development Plan 2021-2027 Chapter 5 Economic Development Strategy Page 162 5.2 Context This chapter sets out the employment and enterprise strategy and policies from a planning and economic development perspective for County Offaly over the Plan period. A national strategic outcome of the National Planning Framework (NPF) includes ‘A Strong Economy supported by Enterprise, Innovation and Skills’. Offaly’s location within the centre of Ireland with accessibility and connectivity, attractive environment and infrastructural provision lends itself to being appealing to the set up and expansion of enterprise development. The Council acknowledges and supports the role of employment and investment promotion agencies within the county, which include the IDA and Enterprise Ireland. The Council administers the Local Enterprise Office (LEO) which serves as a firststop shop to provide support, expertise and services to start, grow and develop local small businesses. 5.3 Economic Profile of County Offaly This section provides a brief overview of the economic profile of County Offaly. It presents data from a number of key indicators that help to paint a picture of the economic profile of County Offaly and the information has been used to inform economic policy making as part of the Plan. Located in the midlands, Offaly is bordered by seven counties and shares its western boundary with the River Shannon. The county is traversed along the northern boundary by the M6 Dublin to Galway motorway and along the south-eastern boundary by the M7 Dublin to Limerick motorway. In addition, the Dublin-Galway railway route passes through the County, with stops in Portarlington, Tullamore and Clara. Strategically located with good transport connections, the County is well positioned to attract economic investment. 5.3.1 Existing Employment in County Offaly Tullamore, a Key Town in the RSES, is Nationally central and serves as a major employment hub for the Midlands, with Professional Services, Manufacturing and Engineering being its largest industries. Tullamore has a Total Jobs: Resident Workers ratio of 1.48, which is relatively high compared to the EMRA average of 0.82 (over 0.7 represents a strong economic function as stated in Appendix A of the RSES). An increasing cluster of medical-tech and biopharma companies are locating themselves in Tullamore; in proximity to the Midlands Regional Hospital, which is the major hospital for the region. This is a Teaching/University hospital for a number of institutions including University College Dublin and University of Limerick, acting as a strong economic driver for the town and also providing a springboard for further linkages to existing and new med-tech businesses and research facilities. There are almost 1,150 active businesses within 5km of Tullamore, employing nearly 8,260 people each day from the town and the wider region. 26% of these businesses are in less conventional sectors, where emerging business clusters can often be found. These include Med-Tech, FinTech, ICT and Engineering employers (such as Integra, Kelpak Medical and McDonald International). Tullamore is also a growing hub for the Food & Drinks sector, with large employers like Tullamore Dew Distillery, Carroll Meats and Glenisk. Professional services, scientific and technical activities, as well as various public service providers comprise the town’s other key economic pillars, with traditional employment in peat production giving way to opportunities in the green economy.

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   Offaly County Development Plan 2021-2027 Chapter 5 Economic Development Strategy Page 163 Figure 5.1 Tullamore Business Activity and Clustering The Midlands Skills Centre in Tullamore, located in the Axis Business Park, is amongst the country’s best equipped facilities catering to the specialist training and upskilling of those who wish to seek employment in the rapidly growing biopharma and medical-tech sectors. The centre delivers holistic training solutions in a realistic Good Manufacturing Practice (GMP) simulated manufacturing environment, enhancing the learning experience through adjacent IT and meeting facilities. Facilities include a state-of-the-art cleanroom, laboratories and classrooms. Also located in the Axis Business Park is the Junction Business Innovation Centre, which offers a professional, well-serviced co-working environment for remote workers, freelancers, young companies and entrepreneurs. The Council recognises the importance of maintaining and supporting emerging clusters in the area of Med-Tech, FinTech, ICT and Engineering employers, by strengthening linkages or facilitating collective action to improve the cluster-specific business environment. Other settlements in the County have a more localised employment base resulting in fewer jobs. Birr, Banagher and Ferbane are the exceptions with these towns having a healthy Total Jobs: Resident Workers ratio of 0.96, 0.80 and 0.76, respectively. These towns have a significant service function for their surrounding rural hinterland, which generates employment in the schools, retail outlets, hospitality / tourism sector. The employment base in Birr is also supported by established industrial / manufacturing businesses in Syngefield Industrial Estate, Roscrea Road and Crinkill to the south.

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   Offaly County Development Plan 2021-2027 Chapter 5 Economic Development Strategy Page 164 Clara has a long established industrial heritage, with the Goodbody Family in the early 1800s being particular prominent in this regard. Clara benefits from proximity to the county town of Tullamore. A number of pharmaceutical/medical companies are situated along the Kilbeggan Road in the outskirts of Clara notably Bemis Healthcare, Steripack and Eurropharma Concepts. Clara’s other significant sources of employment include local retailing and in community services such as Scoil Bhride and Ardscoil Chiarain Naofa. Banagher maintains a strong local industrial employment base, including Banagher Concrete, Liffey Mills and Inland and Coastal Marina Systems, remaining notable employers in the town, continuing to contribute to the local economy. Other businesses in the town such as Bo Bristle and Inland and Coastal Marina Systems reflect a diverse employment base while Silver Line Cruisers and Carrick Craft operate out of the marina. Ferbane has a number of small or micro-enterprises which trade successfully and generate local employment. Ferbane Food Campus is a state-of-the-art food product development and training facility. It is the first timeshare production facility of its kind to be developed in the midlands and provides a significant opportunity for future growth. Ferbane Food Campus was awarded national winner in the ‘Community Business Enterprise Initiatives’ category in the annual Pride of Place Awards in 2016. Kilcormac’s employment base is through its role as a local retailing and a community centre with its local shops, Kilcormac Convent National School and Coláiste Naomh Cormac being the predominant examples. In the east of the county, the economy was traditionally dependent on agriculture and peat production, however given this area’s proximity to the Dublin Metropolitan Area, a trend of commuting emerged over previous Development Plan periods, which is evident by the jobs to resident workers ratio for Edenderry (0.63), Portarlington (0.43) and Daingean (0.35), indicating a large proportion of outward commuting. Edenderry is the largest settlement in eastern Offaly with significant employment in retailing. Other significant employers include the Rosderra Meat factory in Edenderry. The economy of West and South Offaly has traditionally been and continues to be heavily reliant on the primary sectors including agriculture, quarrying and tourism based on key asset such as the River Shannon, Lough Boora Discovery Park, Clonmacnoise monastic site, Birr Heritage Town and the Slieve Bloom Mountains. Peat production and peat-fired electricity generation has been synonymous with County Offaly since the mid-1900s. Power stations at Shannonbridge, Edenderry and Rhode provided direct employment with additional contract and part-time staff, while further supporting employment in Bord na Móna for supply of milled peat from bogs. The West Offaly power station in Shannonbridge closed in 2021, the Rhode power station closed in 2003, while Edenderry power station, which is now co-firing with peat and biomass, has permission to stay in operation until 2023. In addition to milled peat for electricity generation, Bord na Móna has provided significant employment in the harvesting of peat for the retail sector, including production of peat briquette and compost.

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   Offaly County Development Plan 2021-2027 Chapter 5 Economic Development Strategy Page 165 Other smaller settlements in the County are largely dependent on outbound commuting to sustain employment for their populations. 5.3.2 Socio Economic Baseline Labour Force Participation and ‘At Work’ In Census 2016 the total labour force in the county was 36,031 people. Labour Force Participation (LFP) measures the percentage of all people aged 15 or over who are available for work, that is either at work or unemployed. The LFP rate for Offaly was 59.8% which is marginally below the State average of 61.4% and generally consistent with the other Midland counties of Laois, Longford and Westmeath, being 62%, 60.2% and 60.8%, respectively. There are also notable variations at sub-county level with higher LFP rates evident for Tullamore at 62.5% and Edenderry at 64.3%, and lowest rate for Ferbane at 48.1%. Table 5.1 Labour Force in County Offaly 2011 2016 Total Labour Force 35,849 36,031 Total in Employment 27,536 (76.8%) 30,287 (84.1%) According to Census 2016, 84.1% of the total Labour Force in County Offaly was ‘At Work’, demonstrating a positive trajectory from the Census 2011 rate of 76.8%. The 2016 Census rate is below the State average of 87.1% but compares well with the other Midland counties of Laois, Longford and Westmeath, being 84.7%, 80.4% and 84.1%, respectively. For the towns in County Offaly, the total Labour Force ‘At Work’ varies from 70.9% for Kilcormac to 79.9% for Tullamore, all being below the county rate, which is consistent with the urban/rural split at regional level of 79% / 85.9%, reflecting positively on the rural based workforce. Labour Force Unemployment In Census 2016, the unemployment rate (both unemployed and looking for their first job) for County Offaly was 5,744, representing a labour force unemployment rate of 15.9% compared to the national rate of 12.9%, and positively compared with the other Midland counties of Laois, Longford and Westmeath, being 15.3%, 19.6% and 15.9%, respectively. At a sub-county level, the rate of unemployment for the towns of Tullamore, Birr, Edenderry, Banagher, Ferbane, Clara and Daingean fall between 19.1% and 23.3%, whereas Kilcormac is relatively high at 29.1%.

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   Offaly County Development Plan 2021-2027 Chapter 5 Economic Development Strategy Page 166 Industry of Employment The most dominant sectors of employment of resident employees in the county are ‘Commerce and Trade’ (23.9%) and ‘Professional Services’ (23.5%), representing almost 50% of employment of total residents. When compared to State averages, employment in Offaly is characterised by a higher than average dependence on traditional sectors, such as ‘Agriculture, Forestry and Fishing’, ‘Building and Construction’ and ‘Manufacturing Industries’. Figure 5.2 Industry of Employment Occupations The graph in Figure 5.3 shows the breakdown of occupations across all sectors of industry in Offaly as a percentage of the total workforce compared to the state average. The data demonstrates that Offaly records above average rates for four occupational groups; ‘Skilled Trades Occupations’ (18.5%), ‘Caring, Leisure and other Service Occupations’ (7.9%), ‘Process Plant and Machine Operatives’ (9.8%) and ‘Elementary Occupations’ (9.3%). These four groups account for 45.5% of the labour force in the county. ‘Occupations’ data is a useful indication of the broad range of employment in the County, in addition to highlighting the skill sets of the workforce. Since 2011, the 'Caring, Leisure and Other Service Occupations' occupational group has witnessed the highest rate of increase at 15% (an additional 425 workers), while the 'Professional Occupations' group increased by 6.7% (an additional 295 workers) 17.80% 23.50% 5.30% 8.50% 23.90% 11.40% 5.10% 4.40% 16.4% 22.5% 6.1% 4.9% 19.7% 16.9% 6.1% 7.3% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% Other Professional Services Public Administration Transport and Communications Commerce and Trade Manufacturing Industries Building and Construction Agriculture, Forestry and Fishing Offaly State

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   Offaly County Development Plan 2021-2027 Chapter 5 Economic Development Strategy Page 167 since 2011. A number of occupational groups witnessed decreases in numbers, most notably ‘Skilled Trades Occupations’ which decreased by 10.02% (657 workers). Figure 5.3 Occupations 5.4 Strategy Offaly County Council recognises that it has an expanding role in coordinating and facilitating a competitive environment that maintains existing employment and supports employment growth. The Council will prepare and adapt to the changing landscape of enterprise agencies throughout the Plan period and continue to co-operate with and support the relevant enterprise agencies that can do most to promote the economic growth of the county. The Council takes a multi-faceted and dynamic approach in its strategy to promote and encourage employment, recognising the challenges that are outside of its control while also being mindful that each section of the Council has both direct and indirect influence in employment creation and economic activity on a daily basis. 10.4% 8.8% 7.2% 6.8% 7.3% 13.9% 10.0% 10.9% 17.3% 7.4% 11.9% 9.3% 9.8% 6.3% 7.9% 18.5% 9.1% 8.5% 12.3% 6.2% 0.0% 5.0% 10.0% 15.0% 20.0% Not stated Elementary Occupations Process, Plant and Machine Operatives Sales and Customer Service Occupations Caring, Leisure and Other Service Occupations Skilled Trades Occupations Administrative and Secretarial Occupations Associate Professional and Technical Occupations Professional Occupations Managers, Directors and Senior Officials Offaly State

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   Offaly County Development Plan 2021-2027 Chapter 5 Economic Development Strategy Page 168 The Local Enterprise Office provides direct financial assistance, enterprise programmes and initiatives that support and promote employment in the county. The Council will continue in its efforts to foster and grow a culture of entrepreneurship throughout the lifetime of the plan. The Council, however, recognises that the biggest influence that it can have in the promotion and growth of the economy of County Offaly is contained within the policies and objectives of this plan. The Council can have its biggest influence in attracting people to live and invest in County Offaly by taking action to ensure an excellent quality of life for the people living in the county creating and maintaining attractive settlements. The reliable and efficient provision of water, wastewater and roads infrastructure are critical considerations for potential investors and this Plan includes policies and objectives accordingly. The Council recognises that potential investors in County Offaly want to make sure that they can attract employees with relevant skills who will want to work and stay in the local area and that these decisions are influenced by such factors as the availability of recreational amenities, good transport links, local schools and attractive places. The Council will strive to ensure that Offaly is an attractive place to live and to visit. By making Offaly a place where people want to be, employment opportunities will follow. Figure 5.4 Robotics

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   Offaly County Development Plan 2021-2027 Chapter 5 Economic Development Strategy Page 169 Table 5.2 Key Initiatives in County Offaly 1. Strategic Employment Zones in Tullamore Key Town as indicated in the Tullamore Zoning Objectives Map and chapter 13 of this Plan; 2. Tullamore to support the Regional Growth Centre of Athlone; 3. Opportunity Sites in many settlements in the county as indicated in chapter 7 of this Plan and in Volume 2 Settlement Plans; 4. Catch-up investment, for example, employment and enterprise required in Portarlington and Edenderry Self Sustaining Towns in order to reverse long distance commuting as indicated in the Settlement Hierarchy in chapter 2 of this Plan; 5. Potential for relocation of ‘back-office’ facilities from the Dublin Metropolitan Area to Offaly to take advantage of cheaper land, high quality life and reduce long distance commuting. 6. Opportunities to capitalise on I-LOFAR in Birr, for example, in big data and data analytics, recognising Birr as a technology hub based on high quality employment parks and attractiveness of place; 7. Adequate zoning in towns and villages to facilitate employment, enterprise and existing initiatives, for example, Ferbane Food Campus as indicated in Volume 2 Settlement Plans; 8. ‘Post Peat’ opportunities posed by sites with antecedent industrial use and the ceased industrial peatland sites as indicated in chapter 3 of this Plan; 9. Potential for new energy initiatives to facilitate climate action and energy transition as indicated in chapter 3 of this Plan; 10. Co-working hubs to mitigate long distance commuting; 11. Links with third level colleges; 12. Infrastructure to support and attract new economic activity; 13. Development of Rhode Green Energy Park; 14. Diversification and growth of smart specialisation of local economies with a strong focus on clustering, including sustainable farming and food production, tourism, energy and renewables, and bioeconomy. 5.5 Strategic Policy The following main principles establish the overall strategy for the purposes of the County Development Plan, having regard to the identification of potential economic strengths of the county in facilitating the development of its overall economy, enterprise and employment. The strategic objectives provided in the Midlands Regional Enterprise Plan 2019-2020 are recognised namely: • Ensure that the midlands are well positioned to address the challenges posed by the transition to a low carbon economy and renewable energy; • Leverage opportunities in big data and data analytics from I-LOFAR; • Position and support the midlands as an advanced manufacturing centre of excellence;

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    Offaly County Development Plan 2021-2027 Chapter 5 Economic Development Strategy Page 170 • Enhance the collective offering of the midlands as a place to live, work and invest in; • Strengthen the attractiveness of the midlands as destination to visit; • Harness the potential of the food and beverage industry in the midlands; and • Ensure the availability of skills and talent to realise the region’s economic potential and address upskilling requirements. Strategic objectives in subsequent versions of the Midlands Regional Enterprise Plan will also be recognised by Offaly County Council. 5.5.1 Settlement Hierarchy – Type / Scale of Enterprise and Employment The Council’s strategy for sustainable employment is compatible with the Council’s Settlement Hierarchy as outlined in Table 2.4 and Figure 2.5 in Chapter 2 of this plan. Future development must have regard to an individual settlement’s location within the overall settlement hierarchy and its capacity to facilitate the scale of such development proposed. The county’s settlement hierarchy provides the framework for the allocation of areas of land zoned for Enterprise and Employment, Industrial and Warehousing, Business / Technology Park and Town or Village Centre / Mixed Use. 5.5.2 Large-Scale Development Optimum locations for large-scale development proposals are considered in accordance with each settlement’s location within the identified tiers in the settlement hierarchy. In general, large-scale multi-national companies display a preference for locations within or within proximity to large urban areas that can provide a labour force, skills, infrastructure, services, accessibility and business and social networks. In contrast, established Irish-owned companies are distributed more widely. The Council supports that priority be given to IDA Ireland and Enterprise Ireland to developing sectoral clusters within Tullamore, a Key Town in the Regional Spatial and Economic Strategy (RSES). Regional Policy Objective (RPO) 4.27 of the RSES states ‘Key Towns shall act as economic drivers and provide for strategic employment locations to improve the economic base by increasing the ratio of jobs to workers’. In response, sites are identified in the Tullamore zoning objectives map as ‘Strategic Employment Zones’. The Council is supportive in encouraging and making provisions for increased employment and enterprise activity in the larger towns, including ensuring that sufficient land is zoned at optimum locations, the provision of necessary infrastructure where possible and measures in encouraging and sustaining critical mass levels within the county’s urban settlements to allow their future economic development. The Council will work with the providers of infrastructure, including Transport Infrastructure Ireland (TII), telecommunications providers and Irish Water, to ensure that they can respond adequately to

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