IDA Ireland has reported another record year for job creation for the third year in a row. Its client list now reads like a Who's Who? of leading world names. They include Hewlett Packard, Ericsson, Intel IBM ITT, Dell and Johnson & Johnson.
This year looks like being another record year. The question is how long can it last? IDA chairman, Mr Denis Hanrahan summed it up yesterday, stressing education and competitiveness as the key factors.
IDA executives reflected the worries of senior executives in the electronics/ software industries - that funding needs to be made available to address the issues of education and competitiveness.
The outgoing coalition agreed to make available 1,000 additional places for software degree courses, 12,000 places for conversion courses to software, 750 places for language technicians and 750 places for electronic technicians.
However, the IDA is worried that if a decision on funding is not made within the next two weeks, the courses will not be able to proceed in September. This would mean Ireland would lose another year in the race to match skills with changing demands.
Already there is a shortage of software graduates, whose salaries have risen from around £11,900 per annum to around £15,000 in just a few years Ire land is in danger of becoming a victim of its own success. In the next three years IDA backed companies will create 17,500 jobs in the electronics/software sector. Little wonder the IDA and others are concerned.
IDA backed companies are creating 1,100 new jobs a month. Around two manufacturing and international services projects are being secured each week. IDA executives are bringing potential overseas investors on an average of five site visits per week.
The agency is now getting the reward of its own forward thinking over the last ten years. When nobody knew the meaning of the word teleservices the IDA set out to woo this business and it is now paying dividends. It also targeted electronics and the healthcare sector from a very early stage.
Around 50 per cent of job creation is now coming from existing firms. Many companies are far outstripping the job projections made when setting up here - for example Hewlett Packard now expect to employ almost double its original forecast of 2,000. IFSC companies are being actively pursued to locate more business here.
The IDA's hand is considerably strengthened by the fact that world leading names are already here. However, they still face serious competition from other countries, including England, Scotland and Holland for some projects.
Despite the buoyant economy, the IDA has warned that some job losses are inevitable. They average at around 5 per cent of total employment per annum.
But the organisation has warned it sure or downsizing, risking good money to try to salvage what are in effect lost causes".
