In terms of industrial growth Ireland has had few equals over the past decade. An invasion of high-tech multi-nationals, coupled with developments in indigenous industry, means that the numbers employed in this area are higher than ever before.
While some small and medium sized firms are finding it harder to benefit from the boom, Mr Pat Barry, of the Guinness Ireland Group, says that our industrial success has made us "the envy of all Europe". Mr Barry regularly travels abroad meeting representatives of other large companies. "They look at Ireland with great admiration. The educational system here is geared towards meeting the needs of the modern manufacturing sector and as a result we have a highly skilled workforce," he says. The sector is almost unrecognisable since the days when most industry was traditionally based. This transformation was accelerated in the last ten years.
In 1987 there were 670 overseas companies operating in Ireland, employing 62,000 people. In 1997, according to the Industrial Development Authority (IDA), there were 1050 such companies employing almost 100,000. This growth has been most noticeable in the computer, pharmaceutical and chemical industries. Companies like Intel, Boston Scientific, Johnson and Johnson - attracted by low inflation and availability of skilled labour - have been integral to the sector's success.
While much of the overall bouyancy in this sector has its foundation in overseas interest, indigenous industry has also contributed to growth. Companies such as Waterford Crystal export 80 per cent of everything they produce.
Other Irish firms have benefited from the presence of the large multinationals, eventually growing beyond the Irish market themselves.
The industrial climate here paved the way for the most successful launch of a soft drink in the history of the state. When United Beverages launched the Finches brand in November 1991, they achieved a sale of just over one million bottles. Six years later 27 million bottles had been sold by the company.
"Manufacturing in Ireland is going through a good patch at the moment but you have to be innovative to keep up," says Mr Philip Smith, of United Beverages, which currently employs 2,000. Technology has impacted greatly on development, he says. The company's plants in Dundalk and Dublin now boast an integrated production system where everything from the manufacturing of the drink to the labelling is completed in-house.
United Beverages, says Mr Smith, has "a toe" in the UK but mainly produces for the home market. In contrast, Guinness Ireland export 40 per cent of what it produces. Despite its success and growth in exports, even the brewing giant cannot afford to be complacent, says Mr Pat Barry.
"Our whole emphasis is on quality and technology has brought a new dimension to this. We built a new brewery within the old one and are much more technology oriented. If we hadn't gone down that road, we wouldn't be able to serve the global need for Guinness," he says. The main brand has altered significantly over the years to keep up with modern trends. "We now serve a cooler Guinness and an extra cold Guinness. Branding and imagery has also changed to make it more attractive to younger adults while maintaining existing consumers," he says. Guinness's world wide research centre is based in Dublin. Skilled technicians develop new products, raw materials and processes to ensure the company stays ahead of the competition.
But staying ahead is exactly what some smaller, indigenous, firms are finding it hard to do despite the economic boom. According to the Irish Small and Medium Enterprises Association (ISME), the surge by the multinationals is "masking" the fact that the indigenous manufacturing output of their members is beginning to slow down.
A survey carried out by ISME found a sharp decline in the number of indigenous manufacturing firms which expect to create additional jobs this year. The survey also found that there was a decrease in the number of firms reporting increases in the value of export sales.
The problem is exacerbated, says MrSimon Gavin, financial controller of ISME, by a "skill shortage" in the sector.
"There are qualified workers but even when you find them the multinationals often come along and offer them a higher wage than ISME employers can pay," he says.
The ISME sector is where the buzz is in indigenous manufacturing, he adds, but they have yet to be recognised "either politically and socially" as the long-term driving force behind the Irish economy. "We welcome the multinationals, they are wonderful in terms of job creation. But indigenous Irish firms are the ones that won't quit when the going gets tough," says Mr Gavin.
Meanwhile, agencies like the IDA are looking ahead to a year when two key elements will remain a priority in ensuring that international firms continue to seek bases in Ireland. The first is the ease of access between regions in Ireland and mainland Europe. "This means customers and senior executives from the companies themselves being able to come to a company's facility in Ireland, get their work done, and return home to Europe, ideally in one day," said the IDA's chief executive, Mr Kieran McGowan. This could be achieved with improvements in roads, shipping and in airports around the country.
The second issue is ensuring the availability of a skilled and flexible workforce. "The biggest issue now is to ensure that young people and their parents respond to the many new initiatives in schools, colleges and universities right across the country and take up the opportunities to build for themselves new and often different types of careers than earlier generations in Ireland could never do."
