‘Buoyant’ six months for IDA as FDI jumps 42%

Over 100 investments from the likes of IBM, PayPal and Ericsson were secured by the IDA in the first half of this year, leading to the creation of over 8,000 jobs, the government agency said this morning.

Referring to a “buoyant” first-half of the year, with a growing number of new greenfield investments, expansions and transformations by existing companies, the IDA said that the number of investments secured is up by 42 per cent on the same period in 2013.

Of these, 40 per cent came from companies investing in Ireland for the first time, with the remainder represented by expansions and transformations by existing companies.

In his last press conference as IDA chief executive, Barry O’Leary said that Ireland is “very much competing strongly in the global marketplace for inward investment”.

“The second half of the year looks equally encouraging, with IDA particularly concentrating on attracting first time investors. The value proposition Ireland offers global corporations, which rests on a complex blend of a strong talent pool, a proven track record, strong technology infrastructure and a 12.5 per cent corporate tax rate, continues to resonate strongly with investors.

“Ireland’s FDI proposition is aimed at sectors where growth is continuing despite challenges in the global economy, and that should provide strong momentum in the second half of the year, with the pipeline looking encouraging. An increasing focus on Ireland’s value proposition will ensure Ireland continues its position as one of the leading countries in the world for winning FDI. With so much growing competition for FDI the need for differentiation is constant,” he added.

According to the just published IDA Annual Report for 2013, there were 161,112 people working at IDA client companies, a new record for the FDI sector in Ireland. When the 55 companies in the Shannon region which the IDA now has responsibility for are included, total employment at IDA client companies rises to 166,184 people.

IDA client companies now total over 1,100. These companies export almost € 121bn annually, spending over € 12.5bn in the Irish economy, via services and materials. Adding in annual payroll of € 8bn, FDI companies spend over € 20bn directly in the Irish economy annually, with all categories of FDI spending rising.