Letterkenny is at the centre of industry in the northwest of Ireland. Eircom, Boston Scientific and Pacificare are significant employers in the region. As the main commercial centre of north Donegal, Letterkenny also has a host of financial service institutions, legal firms and small businesses. There has been a significant decline in the manufacturing base, while employment has grown in the service sector. Since 2002 there has been a significant expansion in the retail sector. Allied to this growth has been the development of the cultural infrastructure. This includes the opening of An Grianán Theatre and the development of a new arts centre.
Letterkenny is also home of the confectionery manufacturers Oatfield. It is based at the entrance to Ballyraine, near the town's central area. Rockhill Barracks was once a major contributor to the local economy but closed in January 2009 due to military cuts. Modern Timber Homes, a timber-frame manufacturing company is located at Bonagee.
Construction work on a private hospital, which is to provide radiotherapy services to the northwest region, commenced in June 2008. Construction of the first independent hospital in the county will cost €70 million. The hospital will provide four surgical theatres, renal dialysis and an MRI and PET scan. The 1,100m² (12,000 ft²) Wyndale Clinic was due to be completed in 2009.
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