Hardware flourishes on the back of the software industry

The electronics hardware industry in Ireland has attracted some of the major players in the industry worldwide. Many companies have announced expansion plans over the last year and new third-level courses have been introduced to help meet shortfalls for specific skills. Tony Boyle, managing director of Manufacturers Services (which provides outsourced manufacturing facilities for electronics companies), reckons that the quality of the companies operating in Ireland is indicative of its success in this industry. "The standard of infrastructure and the support available at government-level are world-class and being an English-speaking country is also an advantage." "Outsourced electronics hardware manufacturing has grown rapidly as many major companies have decided to concentrate on developing their markets and products. The computer, communications and software industries have performed well in Ireland and this creates a spin-off for organisations producing electronics hardware.

"A lot of expansion has taken place over the last 12 months and this underlines our position as a competitive location. The workforce is available - companies wouldn't locate here otherwise - but we need to make sure that the required skills continue to be available. Action has been taken to meet this increased requirement through the provision of relevant courses."

Mr Boyle acknowledges that there is a shortage of professional skills in areas, such as engineering and technical work, materials, purchasing and finance and programme management. "The increased demand for these skills has exceeded expectations, but this is a positive sign and an indication of Ireland's success in this sector rather than a problem."

Many of the above points are echoed by Gary Duffy, managing director of Computer Products and a director of IDA Ireland. "The hardware market is booming on the back of strong growth in computers, communications and industrial electronics - communications is probably the fastest growing segment in industrial electronics. Many companies in the networking industry are expanding in excess of 40 per cent per annum and a number of those organisations are located in Ireland."

Suppliers are also enjoying a lift from this development. Manufacturers of components from microprocessor chips to printed circuit boards (and even sheet metal and cable subassemblies) are profiting from the growth in demand for communications systems. Subsupply and subcontract manufacturers have also flourished.

Mr Duffy feels that the indigenous electronics industry is stronger than ever and believes the presence of leading companies causes smaller organisations to look at Ireland as a location. While the larger organisations tend to locate around Dublin, other parts of the country have also benefitted. "There is a strong electronics hardware presence in the Galway area, in the mid-west around Limerick and Shannon and in the Cork region. Around Cork alone there are 50 companies employing more than 5,000 people."

There appears to be no reason why Ireland should not continue to attract a disproportionate amount of foreign investment in this sector. "The boom in Internet use and greater implementation of local area and wide area networks is creating unprecedented demand for hardware and the IDA has done a tremendous job attracting investment. I have no doubt that the electronics industry will continue to grow."

Demand for electronics engineers and technicians is also growing - particularly for graduates with experience - and Computer Products' managing director feels the Government deserves credit for its efforts to address the skills shortage through contact between the Department of Education and the industry. As a result of this dialogue, 300 RTC students will commence a new 18 months electronics technician course in early January.

Computer Products also announced a job expansion in 1997. In August the company set itself a target of growing from 300 to 550 employees over the next three years and had exceeded the 400-job mark within four months. According to Intel press officer, Liam Cahill, it is difficult to make an exact assessment of the performance of the Irish electronics hardware market. "We have set new records for microprocessor shipments and you can draw an inference from this as to how other sectors of the industry are performing." However, he is less certain that Ireland has become a centre of excellence in electronics.

"In the sense that we are the leading semiconductor manufacturer and we are in Ireland, this country is at the hub of the market. We are leading our sector, but other manufacturers (such as Samsung and Siemens) don't have a similar presence in Ireland."

Intel announced a $1.5 billion investment in 1995 with the creation of 2,000 new jobs. Half of those positions have been filled over the last 12 months by a combination of recent college and technical graduates, middle to senior managers and technicians. The company (which now directly employs 3,500 people in Ireland) expects to take on another 1,000 people next year.