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, 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 to promote a deepening of the base of Research and Development performing firms. A number of initiatives to sustain the competitiveness of the manufacturing sector in Ireland are currently being pursued. IDA Ireland, for example, 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.
