Goodbody charts Dell’s worth to Irish economy


10 Nov 2003

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Exports by Dell in Ireland during 2002 amounted to approximately 7.8pc of Irish exports and revenues generated by the local operations was equivalent to 5.8pc of total GDP in 2002 at US$6.87bn (€5.97bn), according to an economic impact study compiled by Goodbody Economic Consultants and seen by siliconrepublic.com.

The research revealed that Dell’s Irish operations increased profitability by 51pc between 1999 and 2002. The research, which was compiled privately for Dell, indicated that in 2002 the manufacturer paid €135m in taxes and PRSI in 2002 and spent approximately €4.2m on training and development of its workforce between 2001 and 2002.

Dell employs 4,500 in the Republic; 3,200 people at its Co Limerick manufacturing facility and the remainder at a sales facility in Bray, Co Wicklow.

The research by Goodbody indicated that Dell recorded revenues of US$6.67bn in 2002, which was equal to 5.8pc of gross domestic product. The company’s revenues increased 51pc between 1997 and 2002.

The Goodbody research showed that Dell’s net payroll in Ireland during 2002 was €113m and its spending on local Irish supplies ran to €128m.

Spending on utilities by Dell in Ireland totalled more than €3m last year; the company paid €2.4m for electricity and approximately €750,000 on telecommunications.

Quoting Forfás figures, sales of computer equipment by Dell as a percentage of total electronic and electrical equipment exports out of Ireland amounted to 25pc of the electronics sector in Ireland.

In terms of productivity growth within Dell between 1997 and 2002, productivity levels more than doubled between 1999 and 2002 and volumes manufactured increased 247pc between 1997 and 2002.

Dell recorded annual productivity increases of 22.9pc, compared with a national average of approximately 10pc. Dell has often made the claim that its manufacturing facility in Limerick was its most productive worldwide.

Goodbody’s research showed that Dell had a predominantly young workforce, with more than 35pc of workers being aged between 17 and 25, over 60pc aged between 26 and 45 and the remainder aged 46-plus.

In terms of local contributions, Dell is understood to have donated over €150,000 worth of computer hardware equipment to schools and non-profit making organisation during 2002. As well as this some 750 children were mentored at 29 schools in Ireland, taking up on average 161 hours of Dell employees’ time.

By John Kennedy