In 2023, Ireland will celebrate its 50th anniversary as a member of the European Union (EU). This period has been marked by radical changes in politics, policy and society – but among the most significant shift has been Ireland’s positioning as a top location of choice for FDI.
As the largest source of FDI in Ireland, US companies and the US-Ireland trade and investment relationship have been central to Ireland’s economic growth. This relationship now stands at an all-time high with record investments in both directions. In 2021, there were almost 900 US multinational companies (MNCs) in Ireland, employing over 190,000 people and indirectly supporting over 152,000 jobs in the wider economy. Meanwhile, Ireland is the ninth largest source of FDI in the US, with more than 700 Irish companies employing over 100,000 people across all 50 States.
Ireland’s membership of the EU continues to provide significant opportunities to strengthen and grow the US-Ireland business relationship. The transatlantic economy is the largest and wealthiest in the world and this relationship is set to be further strengthened by the EU-US Trade and Technology Council (TCC), which was established last year to enhance trade and investment, boost innovation, promote emerging technologies and infrastructure, and encourage compatible standards and regulations. Ireland is already a global leader in innovation with research centres including Insight, CÚRAM, Nimbus, Tyndall National Institute Research Centre and Lero. The presence of some of the world’s leading companies in sectors including tech means Ireland is ideally placed to become a global digital hub. As the only English-speaking, common-law country in the EU, Ireland also acts as a gateway to the EU for the US, meaning that the TTC will provide significant opportunities for Ireland to further grow its trade and investment relationship with the US.
As Ireland continues to be chosen as a location of choice for multinationals, one of my priorities as AmCham president has been promoting our regions as destinations for FDI. Throughout this year, AmCham ran a series of campaigns - #WhyWestNorthWest #WhySouthWest and #WhyMidWest – promoting the competitive differentiators that attract business and talent to regional locations. In 2021, more than half of all multinational investment went to regional locations. This is testament to the talent available in the regions, the great universities, incredible sporting, cultural and entertainment options and a great quality of life available to people. With clusters of world-leading companies choosing to locate in every corner of the country there are opportunities to create balanced regional development, widespread employment opportunities and hubs that reflect the strengths and assets of our various regions.
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Ireland’s success at attracting FDI has been largely aided by our talented workforce. In a survey of AmCham members 95% of respondents said they are satisfied that Ireland’s talented workforce is currently meeting the skills requirements for their organisation. Another one of my priorities as 2022 AmCham president has been promoting Ireland as a base for talent and global leadership teams. US MNCs are at the forefront of ensuring that Ireland remains a leader in talent. Many US companies are collaborating with third-level institutions both to develop new courses to meet current and future skills needs and to provide internships for students to gain on-the-ground experience. When Ireland’s first Master’s Degree in Artificial Intelligence was launched in University of Limerick in 2018 there were 10 US MNCs involved in developing that one course alone.
While Ireland boasts internationally-acclaimed high standards of education and quality graduates, it remains necessary to attract international talent to Ireland and to provide the necessary training and education opportunities to support the development of cutting-edge teams. In that context, AmCham has advocated for increased focus on STEM topics in primary and secondary education, enhancing the development of key skills for the future, including coding, mathematics and the sciences and for the importance of alternative education routes including apprenticeships, upskilling and lifelong learning.
I am continuously inspired by the work done by the US companies who have based themselves here in Ireland. As we celebrate this Thanksgiving, I am grateful for the wonderful contributions US companies make to our society and our economy and for the opportunities that we have to grow and strengthen the US-Ireland relationship.
Catherine Duffy is senior VP, general manager at Northern Trust Limerick and president of the American Chamber of Commerce.