Sunday, 17 February 2008

our jobs are gone to costa rica



Our Jobs are gone to Costa Rica

Allergan is closing their business in Arklow. They are relocating

their business to Costa Rica. Allergan make breast implants, among

other things (Botox and the like).

I'm not trying to be mean in my comparison of industries, but it is

necessary in order to try to figure out what might be the future of

Ireland's economy and society.

This one worries me much more than other job losses lately, which I

would have predicted. Manufacturing breast implants involves such

processes as GLP - good laboratory practice and other sterility and

cleanliness measures. In short, it is a bit more specialist compared

with Jacobs, for instance, which is a food manufacture industry.

Costs Rica is not the most obvious choice or relocation, but it

happened probably for two reasons. First of all, the taxation system

in Costs Rica is pretty aggressive, even compared to Ireland. There

might be little or no taxes to pay on some of the people that will be

employed in Allergan in Costa Rica. Secondly, wages are much, much

lower.

I'm not sure now what manufacturing jobs in Ireland are safe. Possibly

none.

This is not entirely our fault in some ways and it is all our fault in

other ways. We needed to develop in the last 15 years. Old Ireland was

a crap place to work and live - in fact you didn't work, you went on

the dole. However, we went very far up the value chain. That is fine

too. Why shouldn't we? Now, we are a high wages, high cost economy.

That is fine too. Why shouldn't we be? The downfall is that we are no

longer competitive with Costa Rica for some kinds of jobs. We are in

great shape for some jobs where people are only dying to come here to

work. However, the day is coming where we will have precious little

manufacturing industry and it needs to be replaced with lots of the

high-end stuff that is based on intellectual property, with people

that would normally be in the manufacturing industry being employed in

the services industry.

Science, science, science. It is one of the best ways forward for us

now. Promoting Ireland as a centre for high tech discovery and

innovation is a good idea and might be one of the ways in which

Ireland can keep job creation going. However, it needs the scientists

to step up now and make their knowledge work for job creation.

I guess, I am including myself in this one. Gotta get that invention

disclosure document finished.

Subscribe in a reader Add to Technorati Favorites


No comments: