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DELL JOB LOSSES 2009

8th January 2009

I would like to express my sadness at the loss of 1,900 jobs at the Dell Manufacturing plant in Limerick. As CEO of Clare County Enterprise Board I work closely with over 400 client companies in the Clare region, many of whom are no doubt very concerned today.

Up until the announcement today, Dell was the most significant employer in the Mid West region, providing over 3,000 permanent jobs at its operation in Raheen in Limerick. Its contribution to the local economy in terms of direct wages and the purchase of local goods and services was immense.   

This announcement is a very significant blow at a personal level for each of the 1,900 permanent employees who have today lost their jobs at Dell, and comes at a time when the Irish economy is facing very significant challenges.

Background briefing: What is meant by challenges?

We remain a small open economy and are therefore very exposed to international market developments. Current challenges include the domestic cost environment, adverse currency movements negatively affecting exporters (the recent strengthening in the value of sterling and the continued strength of the dollar against the euro), continued turbulence in global financial markets, and the apparent deepening of the downturn in the international economy.

At a broader level, this is a very significant blow for the Mid-West region economy and indeed the national economy, and follows a number of other downsizings, closures and job losses by Clare and Mid-West region companies in recent months. (Layoffs at Tyco, Genworth, Element Six being amongst the most significant in this regard.)

As I’m sure you are aware, a significant number of local micro-enterprises - our client companies at Clare County Enterprise Board in the Mid West region - are exclusively focused on servicing the multinational sector in the industrial estates of Clare and Mid West region.

For many of these companies, DELL represents a large proportion of their overall businesses. I can think of a number of local companies, our County Enterprise Board clients in Clare, in business sectors such as manufacturing, sub-supply and services that will no doubt be very negatively impacted by this closure of the Dell manufacturing operations at Raheen.  

I know that IDA Ireland, Enterprise Ireland and Fás will be working to support these companies and individuals affected, and we at Clare County Enterprise Board will like to add our support to that of the these agencies.

The Clare County Enterprise Board and my colleagues in the North Tipperary, Limerick City / Limerick County City and Kerry  Enterprise Boards will continue to support  with new and existing micro-enterprise client companies  ( employing less than 10 at start-up) and to assist those affected by the Dell announcement to seek alternative markets and sectors for their products and services. We do not underestimate the scale of this challenge in the current environment.

At the Clare County Enterprise Board, our services are tailored at supporting the growth and development of start-ups and micro enterprises. We provide a wide range of services to new and established businesses including advice, training and business mentoring, grants and financial supports for training and growth. To those that have today lost their jobs and that have an interest in starting their own business we would encourage them to meet with their local county enterprise board in the coming weeks and months to discuss the range of services, supports and training that we offer to start-up companies. Even in the toughest market conditions there are always growth opportunities for businesses that provide innovative products and services.

Again this is a very significant blow for the workers involved, their families and in turn for the companies affected by Dells decision. However Clare and the mid west region has good business infrastructure, an excellent skills base and highly entrepreneurial track record. On days like this is very hard to remain optimistic, but it is ever more important to remain focused on where we can help to create a positive outcomes for the Mid West region in the medium term.   

A website has been set up to assist DELL employees  www.tusnua.ie or please email tusnua@clareceb.ie with your queries.

Eamonn Kelly, Chief Executive Officer

 

 

 

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Clare County Enterprise Board, Enterprise House,  Mill Road, Ennis, Co. Clare 

T: (065) 6841922 F: (065) 6841887 Clareceb@Clareceb.ie  

Company Registration Number 223815.  Registered Office As Above.

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