Shannon area net job losses in last year

MORE jobs were lost than created in the Shannon region last year, according to figures released by Shannon Development.

In the Shannon Free Zone, 1,393 jobs were created. However, job losses amounted to 2,127, compared to losses of 2,508 in 2001.

Kevin Thompstone, chief executive of Shannon Development Company, the State agency responsible for industrial and tourism promotion in the Shannon Region, said it was vital that we continue to invest in infrastructure despite the downturn in the economy.

Speaking at the launch of the company’s annual report yesterday Mr Thompstone said: “If we fail to invest, we will be playing catch-up when the economic environment improves.

“While the strong employment growth of earlier years is no longer evident, there are growing sales, exports and productivity.

“Companies are recognising they can no longer rely on gaining competitive advantage by way of labour costs and they are now seeking competitive advantage in other ways such as seeking efficiencies through changes in manufacturing or business processes.

“The challenge for the region’s enterprise sector is to further develop its skills base, innovation capacity and exporting ability going forward,” Mr Thompstone said.

Despite the net decrease in jobs last year, the chief executive stressed there are more than 20,000 people employed in industry in the area, which

is 3,700 more than 10 years ago.

“What is encouraging is many companies supported by Shannon Development have increased sales by 12%, exports by 7.2%, overall productivity by 24% and value to the economy by 25% through local expenditure and payroll costs.

“While we cannot rule out further job losses in 2003, we are optimistic about the capability of the businesses in the region to weather the storm and beef up employment when the economic climate,” Mr Thompstone said.

He predicted that the company which currently employs 200 workers, will probably end up with 15 to 20 jobs less during the coming year.

In the past year the company invested 7.7m in the continuing development of the Shannon Development Knowledge Network, comprising worldclass locations for business and life at Limerick, Tralee, Thurles, Birr and Ennis.

It also invested 5m for the development of the Limerick Metro Network, the first major step of broadband infrastructure to the region.