The announcement by the US multinational company, Dell Computer, that it plans to recruit some 3,000 new employees in Limerick and Bray, Co Wicklow, is a reminder of this State's remarkable ability to attract inward investment from the hi-tech sector. Dell's announcement - which has already been billed as the "biggest single employment boost in the history of the State" - will be especially welcome in the Limerick and the wider Munster region which recently suffered from the setback at the AST plant and the closure of the Seagate plant in Clonmel with the loss of 1,400 jobs. By contrast, Dell will double its workforce at its manufacturing plant in Limerick where 2,600 new jobs are planned and at its direct marketing facility in Bray where 400 additional workers will be recruited.
Dell hopes to recruit the new employees over a three-year period beginning immediately. There will, assuredly, be concern that its ambitious plans could be affected by the notorious volatility of the computer sector. There will be concern that Dell's expansion programme could be endangered by the developments in the Far East and/or any slowdown in the European market. For all that, Dell - which makes computers directly to order - appears very well placed to maintain its leading role in the personal computer market. The company has continued to grow at more than three times the industry rate and is now the second largest computer company in the US. Its growth in Europe has been particularly impressive, with revenue doubling to over $2 billion last year.
Dell's ambitious plans continue a remarkable cycle of growth for the IDA. In a record year for job creation, IDA Ireland secured over 15,000 new jobs in 1996, over half of them in the hi-tech and electronic sector. In all over 40,000 people are now employed in this sector. The IDA has managed to attract virtually all the major players in the computer sector to Ireland and it has managed to secure a very generous slice of all US investment in Europe. The low level of corporation tax, generous grant aid and the availability of a skilled and flexible workforce have all played a major part in persuading US investors to locate in this State. But the international reputation of the IDA and the professionalism of its approach has also played a big role in securing several projects - in the face of the most intense competition from other EU states.
It may be that the good news will continue to flow. The relatively low level of computer usage in Europe, when compared to the US, would suggest that there is still strong potential for growth. There is also impressive evidence that the vast majority of multinationals believe they were right to locate here in the first instance; indeed, more than 50 per cent of IDA job announcements last year involved companies like Dell who want to extend their facilities in the State.
But the Government must not rest on its laurels. Dell executives pointedly referred to the importance of the improvements in the transport and telecommunications infrastructure in their decision. There is continuing concern in the sector about a possible future shortage of skilled labour. Ireland Inc has worked hard to secure the opportunities that now present themselves in the computer sector. Continuing heavy investment in infrastructure and education is imperative.