Manufacturing & Engineering

R&D trends in Ireland’s manufacturing and engineering sector have two themes – digital and green. Human–robot collaboration and environmental resilience are the orders of the day.

Specialised technology centres, such as IMR in Mullingar and Dublin help innovators take their ideas into factory floor reality.

The R&D tax credit is intended to encourage industrial innovators that pay tax in Ireland.

Big players in the Irish engineering and manufacturing scene include Intel, with its semiconductor manufacturing plants in Kildare; Liebherr’s heavy crane engineering operation; and Styker’s robotic surgery offering. Ireland’s own homegrown Combilift and Turmec are also key contributors.

Regional hubs have created clusters of innovation and production across Ireland. For example, The Midlands is known for robotics; Limerick for precision engineering; Galway and Mayo are known for medtech engineering and agricultural machinery research; and Cork has become a centre for high-tech hardware, including semiconductors.

What R&D looks like in manufacturing and engineering

Research in Ireland in the manufacturing sector centres around these areas:

• 3D printing and additive manufacturing
• digital twins
• semiconductors
• robotics and cobotics
• materials science

According to IBEC, use of AI to improve efficiency and productivity is a priority for more than 50% of businesses (read more on the IBEC website), making this a fertile field for research.

One on-trend application for AI is predictive maintenance, which uses monitoring and data analysis to better understand when a machine is likely to fail before a breakdown occurs.

Typical eligible manufacturing and engineering development activities

Some examples of research activity within the engineering and manufacturing sector that could qualify for the Irish R&D tax credit include:

• an investigation into the use of a digital twin to stress test a production line
• developing a process that relies on cobots working alongside human operators
• testing prototypes
• researching an advanced composite for use in automotives
• product development
• developing an AI system to capture welding flaws in real time

If you have questions about whether your project is eligible for the Irish R&D tax credit, get in touch with NX Advisory.

Typical costs that are eligible for the Irish R&D tax credit in manufacturing and engineering research

Typical eligible R&D costs for companies in the manufacturing and engineering sector include:

• plant and machinery
• emoluments of employees carrying on qualifying activities
• other qualifying costs

Most costs associated with investigating a technological uncertainty are likely to be eligible for the R&D tax credit. The project does not have to be successful.

How NX Advisory helps

NX Advisory can help you to identify and qualify manufacturing research costs within your business so that you can optimise your claim.

If we think your claim won’t be accepted, or if Irish Revenue rejects your R&D tax credit claim, you won’t be charged because we work on a no-win, no-fee basis. We can give you an idea of how much your claim could be worth to help with your decision-making.

With our extensive experience working with innovators, we can help you to present your data in a way that Revenue officers can easily understand, to improve the chances of your application being accepted first time. We will also support you if Revenue subsequently queries your application.

SMEs often rely on national research centres to provide labs and other infrastructure. We can help you to present these expenditures to Revenue in a way that complies with the rules for the R&D tax credit application.