IDA chief backs sector

MANUFACTURING has a “huge future” in Ireland despite job losses in the sector, according to IDA chief executive Sean Dorgan.

High-value and capital intensive manufacturing is a key driver of the economy, he said.

“There is a common view that manufacturing is somehow finished here. Some of the older type of manufacturing which was basic and based on assembly operation is challenged being sustained in Ireland.

“We have an ability in Ireland to make manufacturing work really well by putting very good engineering standards behind the manufacturing. Some of the very big employers in the south east are in manufacturing,” he told the Waterford Chamber of Commerce’s Vision for the South East 2020 conference.

Manufacturing worldwide is becoming far more competitive:

“But manufacturing in Ireland produces two-and-a-half times the value it did 10 years ago. It employs 5% more people than 10 years ago. There have been losses but there have also been gains.

“The gains are in the quality and depth of what is involved. It has to be competitive. It has to be more productive. It requires higher skills to achieve that. We are seeing this happen throughout the country.”

Friends First economist Jim Power said high-end manufacturing’s future depends on certain things.

“Our IT infrastructure is abysmal. Eircom has failed to deliver broadband to this country and until that situation is resolved, Ireland can not maintain its status as a high-end manufacturing environment.”