The Covid pandemic, geopolitical tensions and continuing disruptions to global trade have led many companies to re-examine complex supply chains with a view to reshaping them for greater resilience.
Eoghan Murphy, technology and transformation partner at Deloitte Ireland, says black swan events – which “have a substantial impact and are difficult to anticipate” – have caught companies off guard and forced them to rethink their supply chain strategies.
“In response, many organisations have adopted a regionalisation strategy to safeguard against these challenges and enhance the resilience of their supply chains,” says Murphy. “Ireland is strategically positioned to support this approach.”
Murphy points to instances “where organisations have been encouraged to reshore the manufacturing of critical raw materials to Ireland”.
“This brings production closer to existing operations, takes advantage of top talent and establishes Ireland as a more robust location to secure the supply of essential raw materials,” he says.
Increasingly, resilience is taking over as a deciding factor, where once cost was the top criterion.
“While cost will remain a factor, procurement leaders are looking at their multi-tier supplier networks to ensure continuity of supply and this represents opportunity,” says Murphy.
“High tech manufacturing in life sciences, technology and food and agri are proven sectors in Ireland with significant manufacturing footprint. This renewed focus on resilience represents an opportunity within those sectors to look at the inputs and raw materials required, where they are currently sourced, and if they can be manufactured aligned to the regionalisation strategy to safeguard against disruption in any one particular region.”
The tech sector will play a key role in taking advantage of the supply chain opportunity, according to Bronagh Riordan, AI and data partner, EY Ireland.
“As supply chains become more digital, Irish firms are well placed to deliver AI-driven forecasting tools, IoT-enabled logistics, and to leverage blockchain for traceability,” she says. “Irish firms are developing tools that improve real-time visibility, automate key processes and support predictive decision-making. These innovations are increasingly essential for managing global supply networks efficiently.”
AI is redefining how supply chains are managed, from predictive demand forecasting to route optimisation and streamlining documentation and compliance, and perhaps most powerfully, according to Riordan, the creation of digital twins – virtual models of entire supply chains that enable scenario testing, performance optimisation and predictive maintenance planning.
“For Ireland, these applications are not only relevant to domestic firms but also represent export opportunities,” she says. “Irish companies and research centres can design AI solutions for global clients, particularly in complex, regulated industries like pharmaceuticals and agri-food.
“As supply chains become more digital and data-informed, AI offers a pathway to both operational resilience and strategic advantage, an area where Ireland has the talent, infrastructure and momentum to lead.”
Klaudia Dudzinska, trade and international affairs executive with Ibec, also points to the Republic’s strong base in a broad range of sectors – adding semiconductors, offshore wind and engineering to those already mentioned – which offer great potential for future growth in the global supply chain network.
“Nearshoring and friendshoring are creating new demand for reliable, skilled and accessible locations – where Ireland stands out,” says Dudzinska.
But in order to take advantage of the opportunities that present themselves, she says, “Ireland must continue to support innovation, infrastructure investment and deepen trade relationships – particularly as the EU expands its international free trade agreement and partnership network.”
The global supply chain network is vast and complex, and requires a sound long-term investment environment, which is where Dudzinska sees Government policy and support as being crucial to create the right environment to boost the State’s attractiveness in this space.
“Despite a push for regulatory measures aimed at reshoring or friendshoring, it remains vital for policymakers to understand how complex it is at a firm level to reassess and implement new sourcing and location strategies. Government support and investment is crucial for national developing capabilities in this space.”
Dudzinska’s colleague Keenan Stack, transport and infrastructure policy executive in the energy and environment policy unit at Ibec, says the need to grow our infrastructure capacity will be one of the key challenges to overcome.
“Our ports are evolving their business models to meet the needs of the offshore renewable energy sector – from facilitating the supply chain to turbine assembly to energy storage – while growing their freight capacity,” he says. Currently, ports are on track to handle forecasted demand until 2040.
Air freight may prove a sticking point, however, as Stack notes that “a revision of the National Aviation Policy will be essential to chart the path forward for the sector as a key facilitator of trade”.
“Our airport ecosystem must be able to operate free from unduly restrictive planning constraints to deliver the international connectivity for the high-value goods we specialise in exporting,” he says. “Other considerations include boosting the attractiveness of careers in the logistics and haulage sectors, and addressing regional infrastructure deficits.”
Ibec’s recent position paper, Our Infrastructure Ambition, details concrete steps the Government can take to ensure better infrastructure delivery, accelerated decision making and risk mitigation.
“While Ireland stands out as an attractive location for reshoring, tales of inefficiencies and unpredictability in the licensing, permitting and planning processes are having a chilling effect on investments,” Stack warns. “For Ireland to be marketed as a world-class destination for industry seeking a new home, we must get out of our own way first and lay the groundwork for the economy of the future.”
