[ALARM BELLS!!] Galway against national trend as fewer new firms set up

KevR

http://www.galwaynews.ie/12616-galway-against-national-trend-fewer-new-firms-set

Galway News wrote:

Galway against national trend as fewer new firms set up

Slump of 16% in first three months compared with 5% rise nationally


By Enda Cunningham

While the recession has seen an overall increase in the number of new business opportunities cropping up around the country, Galway has seen a significant slump of 16% in new company formations, according to new statistics.

The figures show there were 164 new businesses formed in Galway in the first three months of this year – down 16.3% from the 196 recorded in the same period last year.

The Galway figures buck the national trend of a 5% increase for that period – as entrepreneurs battle to fight their way out of the economic slump.

For comparison, Dublin saw a 13.6% increase in new business formations and Cork a 10.4% increase, while Limerick was down 9% and Waterford down 19.1%.

According to the new report from ICC Information: “'Business Activities’ accounted for the majority of formations in the first quarter of 2010 with 28.5% and totaling 1,010 companies nationwide, somewhat encouraging.

“The number of new companies formed in ‘Construction’ has also increased substantially and has reached levels not seen since quarter 1, 2009.

These companies account for 10% of all new companies formed, as does those formed in ‘Community, social and Personal services’.

“The biggest decrease came in the ‘Transport & Storage’ sector, which was down almost 30%, whilst ‘Real Estate and Renting’ is also still feeling the pinch of the decline in the property market,” the report reads.
In 2009, there were 196 companies formed in Galway in the first quarter, 155 in the second quarter, 147 in the third and 126 in the last quarter.

I can't for the life of me think why Galway is bucking the national trend and especially in the 'Transport and Storage' sector. Why would these new businesses choose Dublin, Cork and Limerick over the wonderful Galway?? I doesn't make sense - Galway is a great place to live; surely it's a great place to operate a business from..

Oh wait, I forgot that we have the worst transport infrastructure out of any of the main urban areas in the country. No bypass, no train stations in Oranmore or Renmore and an utterly useless bus service.

While the other urban centres were busy improving their transport systems substantially we were arguing whether or not we should build a bypass in Galway.

As the rest of Ireland comes out of recession, Galway City will get left behind. At least we won't have destroyed any bog cotton or special limestone though. It's great that we have the Ocean Race to look forward to as it should bring in a lot of tourists and money; but really, what's next after that?

KevR

PS - and the fact that they think they will reduce car usage by 50% with the "Smarter Travel Bid" is just hilarious. €20-25 million on cycle lanes, pedestrianising a few streets in town, a few bus lanes and reducing loads of roads to 30kmh speed limits.

If only the solution to Galway's traffic and transport problems was that simple and that cheap, if only..

PopeBuckfastXVI

New Business Startups Schmew Business Startups.

What's the price of a 3 bed semi, that's the only real economic indicator...

leninbenjamin

KevR wrote: »

If only the solution to Galway's traffic and transport problems was that simple and that cheap, if only..

It ****ing is. If everyone fit and able living within a 3 mile radius of their work place got on their bike then we'd be happy out.

KevR

leninbenjamin wrote: »

It ****ing is. If everyone fit and able living within a 3 mile radius of their work place got on their bike then we'd be happy out.

Unfortunately, that's not the case. Many people in Galway City live more than 3 miles from their work place and then there are the huge numbers who commute in from outside the city (have heard it's possibly over 30,000 people who come into Galway City every day for work/colleges/schools/shops/hospitals....etc).

While it would be great if everyone could cycle everywhere all the time (we wouldn't even need public transport within the city), the weather is aweful here so it realistically will never happen. "Good wet gear and showers at the work place" - not every work place will be willing or able to provide showering facilities.

I don't think the 'Smart Travel Bid' will be anywhere near as successful as they are hoping it will be. They're focusing on the wrong things for getting people to cut down on car usage. A train station at Oranmore with a proper Park and Ride and proper connecting bus services and a train station at Renmore with proper connecting bus services would do more to reduce traffic in East Galway City and Galway City Centre than any amount of random bus/cycle lanes ever will.

Cycling isn't for everyone. I used to cycle 5 miles to and 5 miles home from my part time job. A few hours work and a 10 mile cycle everyday wasn't too bad but if you're working a full-time job it's a different story. As great and all it would be for the environment, people simply won't be willing to live a life where they are tired/exhausted for much or all of their spare time. Give them a decent public transport system and they will be a lot more likely to ditch the car.

KevR

PopeBuckfastXVI wrote: »

New Business Startups Schmew Business Startups.

What's the price of a 3 bed semi, that's the only real economic indicator...

Would have thought the levels of people in/out employment is a better economic indicator tbh. The above article backs up the fear I already had that Galway is nowhere near as well placed as it should be for an economic recovery. We won't know for sure until a couple of years time when we can compare the % of people unemployed in Galway with the % of people unemployed in the other main urban areas. I hope I am wrong but I don't think Galway will fare as good as the other urban areas.

leninbenjamin

KevR wrote: »

Unfortunately, that's not the case. Many people in Galway City live more than 3 miles from their work place and then there are the huge numbers who commute in from outside the city (have heard it's possibly over 30,000 people who come into Galway City every day for work/colleges/schools/shops/hospitals....etc).

While it would be great if everyone could cycle everywhere all the time (we wouldn't even need public transport within the city), the weather is aweful here so it realistically will never happen. "Good wet gear and showers at the work place" - not every work place will be willing or able to provide showering facilities.

I don't think the 'Smart Travel Bid' will be anywhere near as successful as they are hoping it will be. They're focusing on the wrong things for getting people to cut down on car usage. A train station at Oranmore with a proper Park and Ride and proper connecting bus services and a train station at Renmore with proper connecting bus services would do more to reduce traffic in East Galway City and Galway City Centre than any amount of random bus/cycle lanes ever will.

Cycling isn't for everyone. I used to cycle 5 miles to and 5 miles home from my part time job. A few hours work and a 10 mile cycle everyday wasn't too bad but if you're working a full-time job it's a different story. As great and all it would be for the environment, people simply won't be willing to live a life where they are tired/exhausted for much or all of their spare time. Give them a decent public transport system and they will be a lot more likely to ditch the car.

Ah here I'm not talking about everyone doing a marathon run everyday. At peak times short journeys are a huge contributing factor to the jams, you're talking mammy's taking the kids to school, people running down to the shops for their messages in the morning and that... to take out the short journeys and leave the roads for the commuters would still make a massive difference at little cost.

And I tell you, Galway gets a lot of rain, but it doesn't rain 100% of the time... heck it's much over 10%. The odd day I'd get drenched but you're talking maybe once or twice a month really, and it's usually light enough rain anyway... the weather thing as an obstacle is a total exaggeration.

People are becoming fat ****s anyway, bit of cycling be good for them. :pac:

snubbleste

A lot of those business start-ups around the country are being funded under the Back to Work Enterprise scheme from the Dept of Social Protection, funding runs out after a while and only a tiny amount of start-ups survive.
The article is a bit misleading imo and not exactly a good barometer of the economy

Are the figures actually relative to anything? Maybe there was just a lot last year.
Stats like this are pretty useless imo.

legatti

Personally it doesnt worry me , when you think of the new motorway and how close dublin now is, Galway to dublin to actually work is achievable
2/3 hour commute is nothing really.
I dont think the recession is something that will end/or not because of one citys lack of transport strategy!

Isnt it far better to end this urban sprawl in this beautiful city, and really consider Dublin as commute, Dublin aint getting any prettier but they pay better wages

Mrs OBumble

Deleted User wrote: »

Are the figures actually relative to anything? Maybe there was just a lot last year.

I suspect you've hit the nail on the head ...

And perhaps Galway has a higher proportion of "independently minded" people who would be happy to work as sole-traders, and not bother with the business-establishment paperwork until they've checked in their idea is viable or not.

KevR

Some people seem to think that I think the above report is conclusive evidence that Galway won't come out of the recession as strongly as other cities. I actually did say that the report only backs up the fear I (personally) had that our transport problems will hold us back.

legatti wrote: »

Personally it doesnt worry me , when you think of the new motorway and how close dublin now is, Galway to dublin to actually work is achievable
2/3 hour commute is nothing really.
I dont think the recession is something that will end/or not because of one citys lack of transport strategy!

Isnt it far better to end this urban sprawl in this beautiful city, and really consider Dublin as commute, Dublin aint getting any prettier but they pay better wages

I didn't say the recession in Ireland will end/or not because of Galway's lack of a transport strategy; I said that when the recession does end in Ireland, the other cities will come out of it stronger than Galway because they are better prepared for an upturn.

You do realise that petrol/diesel isn't exactly cheap anymore and it's only going to get more expensive. The days of very long distance commutes are numbered from a cost point of view - you would be paying a mortgage or rent in Galway and I'm guessing €160 per week at the very least to commute to Dublin. Would that really be sustainable? I very much doubt it; especially if the cost of fuel increases further. And would that really be a life that many people would want to live? Doubt it.

A good transport strategy and de-zoning/re-zoning of land would be a much more sensible solution to ending urban sprawl in Galway. Sending people on ridiculous commutes out of Galway is just pie in the sky in my opinion.

So does anyone think Galway is better prepared than the other Irish cities for an economic upturn? If so, why? I'm genuinely curious. What do we have that they don't in terms of being able to attract new investment/businesses which will get people out of the dole queue and back into work?

schween

Does anyone know the Galway unemployment rate for the whole county? Has Galway suffered as badly as other areas?

Someone bribe this man to leave Ireland...

http://www.advertiser.ie/galway/article/25559

This is from the same people who were heralding a decline in reported crime in February versus January.

If you did the sums per day February (28 days this year) worked out worse than January - the decline was due to a shorter month. I can't find the original article.

Amhran Nua

From the perspective of someone who has set up a few businesses around about, some of which worked out, some of which didn't, you have to break it down to the type of business really.

Retail: rents in areas with high footfall in Galway are still astronomical, you could take out a mortgage on half a housing estate for some of them. Galway is a small city at the edge of a small country, there is no way these rents could be justified. Some people do it, and make a profit, and fair play to them, but if you ever wondered why Galway clothes shops sell stuff that looks like last year's leftovers, now you know. It does affect the quality of merchandise and services.

Industrial/manufacturing: Logistically, Dublin still has a lot of empty industrial and office space cheaper than Galway, and is close to major airports and major markets. It makes no sense to set up in Galway unless you are servicing one of the major multinationals - the customers just aren't there.

Sotware/print/creative: This could be doable since infrastructure isn't so important, but guess what, everyone else thought of that ten years ago and the local market is way too crowded to offer much opportunity. You sometimes get the odd fly by night operator offering super low cost services, but they fall over since they aren't charging enough. Again, Dublin just has more opportunity.

Cottage industries: This might be the one area where Galway has potential, I'm not sure why there aren't more microbreweries, cheesemakers, etc in the city and county.

Construction: Anyone lunatic enough to start a construction based business at the moment should probably be factored out of the statistics.