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Wednesday, March 07, 2007

Beyond Proctor & Gamble

Over on Irishelection Simon of the dossing times has made a good point about how we need to see past the current problems in Irish manufacturing to what the solution might be to the wider problem of having sustainable economy growth.

One aspect I would pick up on is the availability of low cost warehouse style office space something that is still shockingly expensive in Ireland no matter where you go to look for it. Part of that is the result of we not having a previous manufacturing base that left hollowed out shells of buildings. Of course the people in Stanford didn’t really need to worry about heating that much but the fact is that it is more profitable to leave much space lie empty that lease it out.

Also, the point of FDI was to use it as a boost to the economy while we were supposed to be spending the money in ramping the economy up for the move to the model you suggest, much like some doing overtime or working in a crap job while they went to night school or saved to pay for an expensive course. Instead I would contend that the government has squandered all the money we the people earned on the societal equivalent of plasma screens and PS3’s.

4 comments:

Harry McGee said...

Dan,
We have gone big on Motorola job losses in Cork for tomorrow's Examiner. Micheal Martin made a couple of salient points:
1. Churn in the economy. FDI companies coming in are never going to be there forever and a day.
2. Manufacturing unless it's top-end is no longer where it's at.
3. Almost four times as many jobs have been created as have been lost in the past three years.
4. Service jobs - 400,000 created in last 5 years. As many of them are with small companies, there have been no big jobs bonanza type announcement. A stealthy grower.

Dan Sullivan said...

My comments would be

1. Churn in the economy. FDI companies coming in are never going to be there forever and a day.

True, which is why we should have been using the opportunity to get indigenous off the ground. Where is our Nokia? Or even something a quarter the size?

2. Manufacturing unless it's top-end is no longer where it's at.

Again, true and we knew when the deal for the expansion of the EU that we would not be able to compete longer term with the lower costs there (and everyone forgets it but we live on an island! You can drive from Lodz to Berlin in 2/3 hours)

3. Almost four times as many jobs have been created as have been lost in the past three years.

I would be interested in the salary comparisons for the new jobs compared to the old jobs.

4. Service jobs - 400,000 created in last 5 years. As many of them are with small companies, there have been no big jobs bonanza type announcement. A stealthy grower.

A lot of the service industry jobs are in Spars and other convenience stores, and it should be noted that while we get a figure for how many have been hired,no one keeps track of how many are let go. It is like that comment in the 90s about the person who is told that Clinton was creating so many million jobs and they're reply is "yeah, and I've got 3 of them". I wonder how many of the jobs are part-time and employing people who have come to the country from the accession nations? Should we be seeing huge bump in income tax or at least PRSI if there are that many new jobs?

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