Two men who started out as tool makers working in the computer industry have just gone global in the purest sense of the word.
The founders of Ballymount Precision Engineering, now Trend Technologies Europe, provide a text book example of how a global supply strategy can allow a company to develop and expand.
They are not the only ones - Irish supply companies delivered up to £750 million worth of exports to multinational global buyers last year - but as a case study their story is of specific interest.
In 1980, Dubliners Mr Martin Mooney and Mr Henry Cahill went out on their own as toolmakers for the production of computer components. Two years later they were joined by financial director Mr Ciaran Harris. "We realised that there was a much bigger future in manufacturing the components themselves," says Mr Moore.
Their first big contract was with Apple in Cork. They talk about this as stage three on the ladder to global supply success. As they developed the company took on more customers and began to internationalise its business.
The customer base of Ballymount Precision Engineering grew until it included multinationals such as Dell, Compaq, Digital and IBM. The company specialises in computer enclosure manufacturing and currently supplies parts for Compaq in Singapore, China, the US and Australia.
They reached stage one in July of this year when they were acquired by Trend Technologies in a deal which sees the enterprising trio continuing to manage and run the company.
"We are three happy campers," says Mr Mooney. Their parent company, Trend Technologies, has sites right across the US and in Mexico. "As Trend Technologies Europe we have more financial clout and will be a truly global supplier."
The number of global players here has increased dramatically in recent years with agencies such as Enterprise Ireland actively encouraging companies to internationalise.
The current business climate is also making it easier. Large corporations are moving away from sourcing their products nationally and have turned to global sourcing strategies. This outsourcing means that in addition to selecting suppliers on the criteria of price, quality and performance they are seeking strategic partners that can enhance competitiveness. Mr Jan Gerritsen, of Enterprise Ireland co-ordinates the activities between international buyers and Irish suppliers across a wide spectrum of sectors including telecommunications, computers, automotive and aerospace.
"We have a relationship with the procurement teams of the big multinationals. We promote the supply capabilities of Irish companies and put the buyer and seller together. It is essentially facilitating a global supply solution," he says.
At the recent Global Supply Solutions Conference organised by Enterprise Ireland, chief executive Mr Dan Flinter stated that Irish companies must internationalise their business in order to compete effectively in global procurement.
Also at the conference was Mr Bernard Murphy, procurement director of the Dell Computer Corporation in Texas. He said that the Republic was well positioned to expand its global supply capability.
"It has high calibre companies who have gained the experience of working with top multi-nationals in Ireland." There were both "challenges and opportunities" in becoming world class suppliers in today's global economy, he said.
Beta Electronics is a relatively small company based in Ashbourne in Co Meath. The main part of its business is Contract Electronic Manufacturing (CEM) - essentially producing and assembling another company's product. In addition, Beta designs and manufactures its own products which are also exported around the world.
One such product can be seen every day on our TV screens. This multiple video graphics solution allows the viewer to see which programmes are on every TV channel. As a manufacturing partner Beta produces items such as electronic mirrors for the automotive industry.
"What we are doing is replacing the manufacturing wing of these large multi-nationals," says operations director of Beta, Mr Philip O'Rourke.
He believes it is "critical" that Irish companies travel the global route. "It ensures that your market share is spread and allows you to diversify," he says adding that becoming a supply company for international customers also alleviates the effects of the cyclical nature of the business.
As it develops, Beta will continue to attend trade fairs, often run by Enterprise Ireland, which provide a forum for international buyers to be introduced to Irish companies. The competitive advantages held by the Republic - a skilled workforce mixed with world class manufacturing facilities - means that such suppliers are extremely attractive to the buyers.
Sales and marketing manager Mr Kieran Horan, of Methode Electronics in Limerick, agrees that it isn't so much important, as vital, that Irish companies go global, particularly in the high technology sector.
"The parent companies of most major Operation Equipment Manufacturers (OEMs) stem from the States in the electronics industry," he says.
"If any major electronics OEM asks can you supply us worldwide, and we say no, it is a negative. In our industry you have to be global." The figures add up too. Over the next two years Irish supply companies are forecast to increase their exports to multinational buyers by 50 per cent, bringing them to £1.1 billion. The value of the world global supply market has been estimated at more than $70 billion (£47 billion) and, say the experts, is rising rapidly.
But going global is not always an option for every business. "If they go the global route Enterprise Ireland can help them achieve their goals but if it is not within reach we can also help them to find alternative business," says Mr Gerritsen.
Next week Business 2000 looks at the issues involved in the global marketing mix
