Smaller firms who supply the construction and engineering sectors are set for a boost with news that the DCU Business School and the Irish Institute of Purchasing & Materials Management (IIPMM) have won a €1.4m EU contract to help small Irish indigenous suppliers win more business from the public sector, create jobs and boost competitiveness.

The initiative is part of an international EU €3.7m programme which is shared with the University of Bangor, Wales.

It comes under INTERREG, an Ireland Wales Territorial Co-operation Programme which aims to further develop Irish Welsh economic co-operation and employment.

"The Irish public sector market is worth an estimated €9 billion currently but many small indigenous suppliers feel excluded from it because of the complexity and time consuming tendering process," commented Dr Paul Davis, DCU Business School.

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"At the same time, public sector procurement needs to be better trained on how to manage tenders from small indigenous suppliers."

Dr Davis pointed out that 98% of companies in the services sector alone are small firms employing less than 50 people but account for over 400,000 jobs. 82% of all industrial enterprises in Ireland are small firms employing between three and 49 people.

"With increasing constraints in public sector budgets it is more important than ever that tax payers get the best value possible for their expenditure. It is difficult to ensure this when in effect a large part of the Irish supplier market is excluded due to lack of tendering expertise on either the supplier or public procurement side," commented Des Crowther, IIPMM.

He added that this is the first time that a programme of this kind has been awarded in the EU and is recognition of the professionalism of Irish procurement training. The IIPMM was the first professional organisation worldwide out of 43 members to offer a degree course in procurement and supply management.

The EU public sector market, which is open to all Irish small indigenous suppliers, is estimated to be worth about €200 billion.

(BMcC)