It is not possible to estimate the potential number of manufacturing jobs that may be lost over the next five years due to the transfer of companies to lower cost locations, as such moves depend on a range of factors and company decisions to which Government agencies are not always party. However, that having been said, and given the open nature of the Irish economy, maintaining our competitiveness will be critical to sustaining and developing the manufacturing sector, both traditional and innovative, in Ireland over the coming years.
The strategy being pursued to maintain Irish industry's position is focused on ensuring that the enterprise sector can continue to compete fully with firms in competitor countries. For Irish firms to compete, the development agencies are working the enterprise base to increase labour productivity in existing firms; encourage innovation in all companies; accelerate the shift towards high-growth, high-tech, high-productivity activities; promote continuous upgrading of the educational and skills profile of the workforce; and promote a deepening of the base of R&D performing firms.
A number of initiatives to sustain the competitiveness of the manufacturing sector in Ireland are currently being pursued. For example, IDA Ireland is working to increase the embeddedness and competitive position of existing foreign companies in Ireland by attracting additional functions to the Irish subsidiary across the full value chain, but with a particular emphasis on research and development, and also by increasing the competence of existing functions.
Enterprise Ireland is working closely with existing clients in the traditional business sectors and is assisting them by providing advice and referrals, operating a dedicated competitiveness fund, developing exports through trade promotions and provision of incubator space, and through a range of new initiatives such as market mentors, training workshops and market visits, which are geared towards clients developing export markets for the first time. In addition, Enterprise Ireland and the other development agencies continue to be active participants in a range of task forces and other working groups established to ameliorate the effects on local communities of downsizing and company closures by identifying new opportunities for enterprise development and working with new promoters to build viable projects.