Secondary Economic Activities (Leaving Cert Geography): Revision Notes

Secondary Economic Activities

Introduction to manufacturing in the GDA

The Greater Dublin Area represents Ireland's most significant manufacturing hub, demonstrating considerable advancement compared to peripheral regions like the West. Various physical and social elements have contributed to establishing the region as a centre for modern, technologically sophisticated industries.

The GDA holds the distinction of being Ireland's largest and most developed manufacturing region. Approximately one-quarter of all manufacturing facilities operate within this area, providing employment for two-fifths of the country's industrial workforce. The region experienced remarkable industrial expansion during the 1990s Celtic Tiger period, attracting three-fifths of all new industrial development. However, this growth created a significant dependency on foreign direct investment, which became apparent during economic downturns.

The 2008 recession highlighted this vulnerability when 30,000 manufacturing positions were eliminated in 2009 alone, followed by an additional 30,000 job losses over the subsequent four years. Recovery began in 2013 when foreign investment, supported by state assistance, generated 13,000 new employment opportunities.

Factors influencing manufacturing location in the GDA

Six primary factors explain why companies choose to establish operations in the Greater Dublin Area:

Strong agricultural sector

The region benefits from an intensive agricultural foundation that supports a substantial food processing industry. Local barley production serves multiple purposes, supplying brewing and distilling operations in Dublin City, including major companies like Guinness, whilst protein-rich varieties provide animal feed.

Agricultural diversity extends to horticultural farming in North Dublin, which supplies vegetables to processors such as Green Isle Foods. The meat processing sector represents another significant component, with Kepak Group employing over 900 people in their facility, processing beef, lamb and pork for the local Dublin market of 1.2 million consumers.

Developed transport links

The GDA functions as Ireland's primary transport centre, with all major road and rail connections converging on Dublin City. This positioning creates an attractive distribution hub for companies seeking to serve the entire country efficiently. The region hosts Ireland's largest port facility, enabling businesses to export finished products to the UK and broader EU markets whilst facilitating raw material imports.

Dublin Airport enhances the region's connectivity with hundreds of international destinations, particularly attracting footloose industries such as information technology companies. Intel exemplifies this advantage, utilising the airport to export processor chips to global markets. The completion of Terminal 2 increased flight capacity and passenger traffic, further promoting regional growth.

Motorway networks now connect the GDA to all major Irish cities including Cork, Limerick, Galway and Belfast, enabling efficient goods distribution. Media companies like Irish News Media utilise these transport links to distribute newspapers nationwide.

Well-serviced industrial estates

Historical industrial development occurred near Dublin's city centre, close to residential areas. Over recent decades, manufacturing has relocated to well-equipped industrial estates on the city's periphery, including Sandyford, Coolock and Clondalkin. These locations connect to transport networks such as the M50 motorway whilst avoiding heavy goods vehicles travelling through the city centre.

Industrial estates provide comprehensive utilities including water, electricity and broadband connections, making them attractive to businesses. Forwards factors are available, allowing companies to occupy ready-to-use factory facilities. Many newly constructed industrial developments are located in West Dublin, particularly around Tallaght, with employees typically residing in nearby suburban areas.

Educated workforce

Dublin possesses a young, highly educated population with skills particularly suited to knowledge-based industries such as information technology and medical supply manufacturing. The region serves as the centre of Irish higher education, hosting 80% of all college graduates.

Major educational institutions include Trinity College Dublin, University College Dublin, Dublin City University, St Patrick's College, NUI Maynooth and several Institutes of Technology. These universities attract manufacturers in healthcare, software and biotechnology sectors by providing skilled graduates and research and development capabilities.

Notably, 45% of the region's workforce is under 25 years old, with three out of every four PhDs in Ireland awarded by universities in this area. This concentration of young, qualified professionals supports innovation and product development in high-tech industries.

Government intervention

The Irish government has successfully attracted industry through various incentives. The most significant incentive is Ireland's low corporation tax rate of 12.5%, allowing companies to retain larger portions of their profits compared to other European countries.

The Industrial Development Authority (IDA) provides grants to companies establishing operations in the region. These policies have resulted in impressive outcomes:

• Five of the world's top-10 IT companies
• Ten of the world's top-10 ICT companies
• Nine of the world's top-10 software companies

Distribution of industry

Industrial distribution within the GDA has transformed significantly over the past century. The oldest manufacturing operations were located close to Dublin's inner city, including companies like Guinness, along with textile, food processing and printing businesses.

As industry modernised, companies relocated to industrial estates on the outskirts, attracted by modern factories, cheaper land costs and reduced traffic congestion. During the Celtic Tiger era, over 900 multinational corporations established operations in the region.

Current industrial diversity includes:

• Medical and pharmaceutical companies such as Wyeth Pharmaceuticals and GlaxoSmithKline
• Knowledge-based industries including Google

These industries are widely distributed, with many located near the M50 motorway, whilst others operate from more distant locations like Intel's facility in Leixlip, County Kildare.

Case studies

Impact of economic changes

The region's heavy reliance on foreign direct investment creates vulnerability to global economic fluctuations. As the European Union expands, multinational corporations may relocate to newly joined countries offering cheaper materials, labour costs and EU incentives. Companies have no inherent loyalty to particular countries, as demonstrated by Dell's 2009 departure from Ireland to Poland for reduced operational costs.