Economic Headlines
Population
Co. Kilkenny has a population of 95,419. The population of the county increased by 9% over the intercensal period 2006-2011, compared with the State increase of 8%. It is estimated that the population of the county will increase to 111,903 by 2022.
Map 1 – Kilkenny Working Population Distribution 2011
Labour Force
In 2011 there were 46,265 persons aged 15 years and over in the labour force. Of these, 80.6 percent (37,273 persons) were at work.
Of the 37,273 workers enumerated in the Census of Population 2011 in Co. Kilkenny, 9,054 worked outside the area. The daytime working population (resident and non-resident) of Co. Kilkenny was 27,485 with Commerce and Trade being the largest industry.
Unemployment
The unemployment rate for Co. Kilkenny in 2011 was 19.4 percent compared with a national average rate of 19.0 percent.
Male unemployment in Co. Kilkenny reached 23.2 percent in 2011. This compared to a national male unemployment rate in 2011 of 22.3 percent.
Female unemployment in Kilkenny reached 14.7 percent in 2011, compared to 15.0 percent nationally.
Unemployment rates in individual EDs reach levels well above those prevailing county wide, and are highest in Urlingford (38.5 percent male, 26.3 percent female), followed by Graiguenamanagh (36.0 percent male, 18.8 percent female), Johnstown (29.6 percent male, 23.3 percent female), Clogh (31.7 percent male, 20.5 percent female) and Moneenroe (32.4 percent male, 19.6 percent female), all of which relate to small town areas.
Business Sector Profile
The CSO Business Demography Survey 2012 found that there were 3,273 businesses operating in Co. Kilkenny, employing 13,970 people.
The number of businesses in the county fell across all NACE categories over the period 2006-2012, excepting in Mining and Quarrying (where the number of businesses is very small and increased from 11 to 13).
The total number of businesses fell by over 700 (or 17 percent) during the recession from 3,996 in 2006 to 3,273 in 2012. The numbers employed in each business sector also declined during the period by an average of 23 percent, excepting in the Financial and Insurance business sector, which experienced a slight increase of 3 percent, highlighting the critical importance of this sector to the local economy.
The Gateways and Hubs Development Index (GHDI) 2012, provided a detailed breakdown and assessment of the socio-economic performance of individual Gateways and Hubs as designated under the former NSS 2002-2020.
The GHDI indicates that the Kilkenny Hub has been performing relatively well, and that there is a case for future designation as a Hub in any successor NSS framework.
In the Kilkenny Hub, the number of new firms established in 2011, at the rate of 8.19 per 1,000 employees, is only slightly below the figure for 2006 at the commencement of the economic recession, when the rate was 8.97 new firms per 1,000 employees. This was the highest rate of all of the nine Hubs in the country (the average rate was of 6.76 new firms per 1,000 employees). While the comparatively high rate of new firm formations reflects the entrepreneurial activity that exists in Kilkenny, it may also suggest the dominance of the City in attracting entrepreneurs from the outlying towns and villages to start-up.
The CSO Business Demography Survey 2012 identifies the importance of the Manufacturing, Wholesale and Retail, and the Accommodation and Food Sectors, as measured by the level of employment supported in Co. Kilkenny. These three sectors accounted for some 9,864 employees in 2012.
Belview Port is the nearest major Irish port to mainland Europe providing a saving to shippers of both time and fuel while being a natural hub for the integration of port, shipping, road and rail freight services. The Belview Development Zone is 6 km from Waterford City and is an ideal location for industry in agribusiness. The zone incorporates 265 hectares of zoned land, including a strategic IDA land bank, the Marine Point Business Park and Belview Port. Agri-food businesses that are located in Belview benefit from a good transport infrastructure and access to the national motorway network.
Key Sectors
Agri-Food
The major companies operating in the agri-food sector within Co. Kilkenny include Glanbia plc and Connolly’s Redmills, complemented by an emerging artisan food producer base of approximately 40 micro- and medium-sized food producers.
Glanbia plc has their Global Nutritionals Headquarters and the Group's main innovation centre located in Kilkenny.
Glanbia is a leading international dairy food and performance nutritional ingredients Group employing 5,800 people across 134 countries, and is the largest cheese producer in Europe. The company has its headquarters in Kilkenny and employs almost 700 people, making it the largest employer by far.
Glanbia has developed a research and development facility in Kilkenny, which employs over 50 research professionals, and Glanbia Ingredients Ireland recently invested €150m in the largest dedicated dairy powder facility in the country, at Belview in South Kilkenny.
There are a number of other much smaller food producers spread throughout the county. However, relative to its size, and despite the high level of primary agricultural production, the county has comparatively few value-added food producers.
Manufacturing Industry
The manufacturing sector accounted for 8.7 percent of all businesses in the County in 2012 and 22 percent of the total number employed by all businesses.
Engineering products and services are a major component of the manufacturing sector and of the local economy. Engineering in Kilkenny embraces a wide range of activities in many different engineering sectors from fine precision engineering products distributed worldwide through to small mechanical and tooling engineering services.
Creative Industries
There are over 50 registered craft producers in the county, operating in the manufacturing sector.
Kilkenny is associated with creative and artistic activity, and is branded as the ‘Creative Heart of Ireland’. As the base for the Kilkenny Design Workshops (KDW) from the 1960’s to the 1980’s, the workshops pioneered a cross-disciplinary approach to design, with craft, graphic and product designers all working in the same organisation. That approach developed an international reputation for KDW and attracted designers from many different countries to work in a centre of excellence for product and craft design.
KDW has spawned a cluster of creative industries and services, including craft, music and art and more recently graphic design, film, multi-media and animation, including Cartoon Saloon (a twice Oscar nominated animation studio).
Construction Sector
The Construction Industry bore the brunt of the collapse with economic downturn in 2007. During the peak years of the Celtic Tiger period, construction accounted for some 20 percent of national economic activity. Currently the sector accounts for approximately 5 percent of national economic activity.
In Kilkenny, some 900 (September 2014) of those signing on the Live Register cited the construction, woodwork and metal and related industries as being their last occupation held.
Retail Sector
There were 760 wholesale and retail businesses in County Kilkenny in 2012, employing over one in five (or 22.9 percent) of the total number employed by businesses in the County, making it the most important sector in terms of employment. A large proportion of these businesses are independent traders, specialist boutiques and fashion stores located in the retail centre of Kilkenny City.
Kilkenny's medieval network of streets and lanes offer an attractive mix of traditional shops selling a range of indigenous products. The range of shopping is well in excess of most other towns of a similar size and population. It is noted that the Regional Enterprise Strategies to be developed as part of the Action Plan for Jobs 2015, are to include measures specifically targeted at supporting the sector in the region.
Tourism, Arts and Leisure Sector
Tourism is currently a major revenue generator for the local economy, estimated at approximately €60 million, and Kilkenny City is a thriving tourist base, accommodating over 200,000 domestic and 204,000 overseas tourists in 2013.
Kilkenny was Ireland’s second most popular domestic short break destination and supported a significant number of festivals and events.
Kilkenny is marketed as a heritage destination and has a large number of visitor attractions associated with heritage. There is considered to be potential to build on the contribution of heritage to the economic development of Kilkenny.
Natural heritage is a further significant asset for the county. It provides a variety of services for free, which bring many benefits to society and the economy. A high quality, natural environment supports the economy by attracting employers, visitors and inward investment.
The value gained from biodiversity is reliant on its ongoing sustainable protection and management. Green infrastructure is an integral part of sustainable development, alongside other infrastructure such as utilities and transport networks. Green infrastructure is an asset that can have a particularly high tourism amenity value.
Information Technology and R&D
There is a potential to gain further leverage from the creative arts in Co. Kilkenny. The county has a tradition in the creative arts, cinema, media and design. This is supported by the proposed development of a creative quarter at the former Smithwicks Brewery site in the centre of Kilkenny City.
The former Smithwicks Brewery site development also includes the provision of a new 3rd Level Research and Enterprise Campus, Office accommodation for corporate, creative and technology companies. It is intended that the TSSG/ArcLabs facility, a joint venture between the Kilkenny County Council, and Waterford and Carlow Institute of Technologies, will be located to the new 3rd Level Campus facility.