NI economy moves towards hi-tech future

2000 saw growth of computer-based industry

By BBC Northern Ireland business editor James Kerr

It has been another year of transition for the Northern Ireland economy.

Against the backdrop of greater political stability, there has been significant investment in the so-called new industries, while the more traditional sectors continue to feel the pressure of globalisation and the strong pound.

The big winners over the year were computer software, telecommunications, and the telephone call centre sector.

Call centre boom set to continue

Investment there has been driven by the worldwide increase in demand for these products and services, and major companies' inability to find good staff at a competitive cost.

Those to announce significant investment during the year included the US based companies Teletech (900 jobs) and Avalanche Technologies (480), while the UK-based MM Group is taking on 300 people.

The greatest difficulties were faced by sections of the clothing and textiles industries.

Competition in the High Street remains fierce and retailers, including the struggling Marks and Spencer, are buying more and more clothes from developing countries.

The decision by Coats Viyella, for decades a major employer in the province, to leave the clothing business, epitomised the change.

The future of its clothing operations remains uncertain.

Right throughout the year, one of the oldest names in local industry, Harland and Wolff, struggled to stay afloat.

The company failed to win an order to build a big liner for Cunard.

Painful year for Belfast shipyard

Then it became embroiled in a row over cost over-runs with the US oil firm Global Marine.

Closure was threatened, but a financial restructuring and a new order for the Ministry of Defence means the yard hangs on, albeit with a workforce of only 600.

For exporters, the strength of the pound, or weakness of the euro, remains a significant challenge.

The transport industry has had a double whammy - the currency differential combined with lower fuel duty in the Republic of Ireland has forced many hauliers to re-register their vehicles there, and put some out of business.

Economy to grow

There's been a welcome in the business community for the decision to merge the government's economic development agencies, and the final outcome of the review of economic strategy is also awaited with interest.

The impact of those developments will be felt in the year ahead.

It's likely to be a year in which the economy continues to grow, although unemployment is not likely to fall significantly further.

Of course, much will depend on wider economic circumstances.

An economy that is increasingly exposed to international competition would feel the chill of any recession in the United States.

On top of that, companies will only continue to invest in an environment of political stability.