WANDER into a management conference these days and chances are the buzzwords will be "globalisation" and "competitiveness".

Big business is operating increasingly across national boundaries and trying to compete more vigorously in markets where they lace new threats from areas like Eastern Europe and East Asia.

Both trends have combined to cause the closure of Packard Electric in Tallaght. They are also increasing pressure on lower technology sectors and leaving services and high technology as the main engines of job creation.

Down the road from Packard another US company, UPS, has set up a tele services centre employing graduates with language skills, providing back office support to its operations across Europe. Packard Electric is part of the Delphi Packard group, which constantly compares the efficiency of plants in different locations. Along with other groups in the industry, it is also restructuring to become more efficient and move production closer to its major customers the big automobile manufacturers.

Delphi Packard is owned by General Motors, whose main preoccupation, like all successful companies, is the bottom line. Ireland sells itself as a location for international business on the basis that the companies located here make money and, in return for grants and a generous tax regime, provide employment and inject spending into the economy. Inevitably this policy, while generally providing a good return for State investment, leaves areas like Tallaght vulnerable to major closures.

Over the years big closures have made the headlines, while overall employment in overseas owned firms has climbed steadily from 63,000 10 years ago to almost 90,000 today. The sector is a much more dynamic source of job creation than Irish owned industry.

Major projects from US electronics companies such as Intel, Hewlett Packard and APC promise thousands of jobs in the years ahead.

In an economy where unemployment is still over 13 per cent, "money for jobs" is still a deal the Government is happy to strike. In many ways it has covered up over the years for the failure of much of Irish owned industry to develop into major job creators.

Looked at strictly as an investment, the State has got a good deal from its £4.4 million Packard investment, as the company has provided significant employment over 21 years. This is no consolation to the 800 workers who have lost their jobs.

Certainly the Government was caught on the hop by the announcement late on Monday and political efforts will now concentrate on securing some replacement employment. But other issues are also raised by the closure.

The Progressive Democrats have made much play of the need for fundamental tax reform, particularly the need to lower the burden on low paid jobs. The tax burden on jobs here is certainly high compared with many of our competitors, particularly Britain. The PDs correctly point out that by not controlling spending more tightly, the Government has missed a chance to lower taxes though the PDs were guilty of the same charge while in office with Fianna Fail.

Competitiveness runs much deeper than wage levels or take home pay. It involves a host of factors, including technology and marketing. After all, some firms in the automotive sector have survived a few difficult years and now appear to be prospering, while Packard is being forced to close. Management and unions at Packard have been unable to work together to find a way to restructure the company. As a result Delphi Packard can operate more productively elsewhere.

A look at the Tallaght area points the way for Ireland's industrials future.

While Packard is closing, new investments have come to Tallaght town, not just in the services sector but also in the CityWest business park, from high technology electronics and software companies. These new projects will largely employ workers who are younger and who have different skills than those being made redundant by Packard Electric.

The future for lower technology industries in Ireland is one of increasing pressure from competitors not only in low cost locations like Eastern Europe but also from Britain, where wage costs are lower and the Major government has an opt out from the Maastricht social chapter, which will serve to lower business costs in some areas. The strength of the pound against sterling on the foreign exchange markets also gives British companies a competitive edge.

So there are likely to be further closures down the road, although few of them will be on the scale of Packard Electric. This will pose difficult dilemmas both for government policy and for unions and management in the companies involved.

Prospects for the newer sectors of services and electronics look brighter. Based on the skills and education of the Irish workforce, they do not face the same intense competitive threats.

But here too the job of IDA Ireland in attracting big projects is getting more difficult. After a couple of years when projects offering 500 to 11,000 jobs were common, major investment in the electronics industry is likely to become increasingly rare as the industry adjusts to slower demand growth in areas such as personal computers.

The services sector, where a quarter of all new jobs are now created, looks the most promising source for new inward investment in the medium term. Already one out of every two projects attracted by IDA Ireland is in services, mainly in areas such as software, telemarketing and tele services.

However, while the new investment in these sectors is the upside of the restructuring now under way in industry, the closure of plants like Packard Electric and the pressure on many others across the State will concentrate minds in the Government in the months ahead. After a few years when job numbers have grown strongly, the Government may now be facing a more difficult period as the economy begins to slow and a golden era for attracting major projects into the State begins to wane.