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.
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