Employment shock: Dell moving out of manufacturing

According to the SBP Dell Limerick is to move out of manufacturing as their new Polish plant at Lodz commenced production in the last month. The article states that in ‘top secret’ negotiations with the government an assistance package has been put in place to support upto 1000 research and customer support jobs as Dell goes into a ‘transitory phase’ as it withdraws from manufacturing in Limerick. This implies a net loss of 2000 jobs in Limerick, not to mention sub-suppliers, even if all these 1000 jobs materialise! It also begs the question whether these ‘customer support’ jobs are really new jobs or just transferred from their Dublin customer support centre? I wouldn’t want to be holding investment property in the Mid-West when this news breaks. www.sbpost.ie

Once the Russian Mafia find out that there are lorryloads of nice new pcs and laptops gently trundling the roads of Poland I would expect that many Polish Dell computers will never ever reach their intended destination.

That will be resolved quickly enough, it was not so long ago the same thing happened here, there were hijackings on Intel lorries and various hard disk manufacturers. Also I remember when Dell initially setup in Limerick there was about IR£1 million a week of inventory being stolen by Irish workers of the plant. That problem was quickly resolved and likewise if that does occur in Poland then it will be resolved there as well.

Anyway this is nothing to do with Ireland, Dell need to respond to the competition or go out of business.

**Green Bear **wrote

It has all to do with Ireland. The Irish workers kept to national wage agreements over the past 10 years. But the pressure for higher and higher wages came from the tripling of the cost of houses over the same time span. The Government in cahoots with the Bankers is the reason why these companies are leaving Ireland. Ireland now is a country whose costs of production are driven up by needless debt incurred by a housing balloon. The balloon may burst but the debt and associated costs remains. All our recent borrowing has gone into a non productive asset – housing! This €100Bn of securitised Mortgages would never have arisen if we respected our young men and women in their efforts to provide a living for themselves and their families. We have betrayed of our own young people! For what! To satisfy our insatiable greed, one of the seven Deadly Sins.

Ireland, Ireland where did you go wrong?

Can someone post a link to this article please?

There is one from last week but it doesn’t say anything about Dell pulling out of Limerick.

sbpost.ie/post/pages/p/story … qqqx=1.asp

just like Dublin in the mid 90s when truck load of computer chips would be hijacked.

There is no such thing as “the Russian Mafia” It is a figment of 2packs imagination.

sbpost.ie/post/pages/p/story … qqqx=1.asp

Hmmm. I’m not sure that it says Limerick’s going to lose 3000 Dell manufacturing jobs to Poland.

hmmm. I’m not sure that it says Limerick’s going to lose 3000 Dell manufacturing jobs to Poland.

This thread is ridiculous, the article makes no mention of Dell ending its manufacturing in Limerick.

That is the clear implication. As the Poland factory ramps up manufacturing will shift from Limerick to Poland. I did read during the week that as well as the announced redundancies agency staff were been let go and any of there own staff departing are not being replaced. The Lodz plant is on the same scale as Limerick although it has started production with 400 Polish Raheen (ironically) trained staff this will be rising to 1100 in January as it takes over production for the Scandanavian as well as the East European market. It may take a couple of years for all manufacturing to migrate to Poland but that is the clear implication. I reckon this 1000 research and customer support jobs angle is only a figleaf, that may not even materialise, to dampen the true scale of this to the Mid-West region.

No one has a crystal ball. The fact is, however, that the article you have linked to does not say what you purport it to say.

Well to look at it in its simplest prospects, it doesn’t bode well for further DELL investment, basically it don’t look so good.

Poland is about to get, what 67 Billion structural EU funding, they probably have a road system better than ours this transit to all of central europe (a much bigger market) wihtout added costs of ferries is a big plus.

I don’t think anyone would argue that Ireland’s cost base makes rudimentary operations like Dell’s computer assembling in Limerick impractical in the long run. One day the same thing will probably happen in Poland too. The SBP article, however, does not deign to make these points.

That must be Russian humor. :confused:

You are correct.
Manufacturing will not stop in the Limerick assembly plant, however, it is quite clear that it will not be expanding and will be contracting since the Limerick plant supples all of Europe currently.

It must, these stats and these stats must all be domestics then .

What are Polish wages like anyway - a fifth of ours?

That equates a hell of a lot of efficiency. Are we five times more efficient at manufacturing?

We’d better be…

The competitiveness of the Irish worker is a complete red herring.

As Green Bear pointed out, the Irish operation in Dell is the most efficient in the world. The problem is, that no matter how efficient those chaps are, it’ll never be enough to keep the enemy at the gates at bay (Poland and Malasyia). Also, while house prices in this country shot up, the wages of private sector did not rise in tandem. Loosening credit conditions provided the gap that emerged, not wage hikes at the multinationals.

Another further point, is that in regards to wages, Irish employees of the American multinationals are still competitive in comparison to our European and American colleagues. In my workplace (non-manufacturing), the Irish employees are actually 25% cheaper than our U.S. counterparts. Mainland Europe isn’t even on the same radar when it comes to competeing with us.

If you want to find the root of Ireland’s problem, you only need to look at the credit bubble and the expansion of consumption (houses, cars, BT handbags, etc).