
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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