Balanced regional development is vital to the future sustainability of the Irish economy and the strengthening of Ireland’s business ecosystem.
Membership in the American Chamber of Commerce (AmCham), the collective voice of American businesses in Ireland and the leading international business organization supporting transatlantic business relationships, helps make regions and communities attractive for continued foreign direct investment. I am a strong supporter of this.
In fact, more than half of the jobs created in Ireland by US multinationals are local, reflecting the huge opportunities available to local businesses and potential employees across the country.
In 2023, 209,948 people will be directly employed by US multinational companies in Ireland, of which 56%, or 117,869, will be employed locally. US companies also indirectly support an additional 167,958 jobs in the greater Dublin area.
The positive impact of U.S. multinationals in local locations goes beyond providing quality employment opportunities. In 2022, U.S. companies will spend 21.84 billion euros on salaries, goods, services and capital expenditures at regional locations, representing 53% of the total domestic spending of U.S. multinationals in the same year.
Multinational companies choose to locate in the region because of our resilient economy, access to highly qualified and skilled talent, vibrant quality of life, and the strength of our world-class educational institutions. included.
These include University College Cork, which is ranked in the top 2% of universities in the world; University of Limerick, which offers Ireland’s first Master’s degree in Artificial Intelligence in response to industry demand; and 96% of graduates finding employment within six years. This includes the University of Galway. Munster Institute of Technology, Atlantic Institute of Technology, South East Institute of Technology and Shannon Institute of Technology have close links to industry and research.
Our regional locations in Ireland are also home to world-class research centers such as CÚRAM, Insight, Advanced Manufacturing Centre, Lero, CONFIRM, Nimbus and Tyndall Institute, to name a few.
There are many great reasons to base in our region, but in a globally competitive environment there are significant opportunities to further develop regional Ireland and increase Ireland’s overall competitiveness and attractiveness for business and talent. Then Amcham thinks.
Clusters of excellence At the heart of this is an increased emphasis on local clusters of key industries, enabling regional cities to become centers of excellence on the world stage. This will enable Ireland to develop competitive advantages in areas of strategic importance and potential, particularly in the twin priorities and challenges of climate change transition and digital transformation.
Significant clusters already exist within regions of Ireland, with Cork home to pharmaceutical and cyber hubs, Limerick for digital manufacturing and Galway and Sligo for medtech. In support of Ireland’s clustering strategy, AmCham recommended that Ireland develop a global campaign to showcase the attractiveness of the region as an investment destination.
This includes a focus on supporting clusters of excellence that ensure enhanced collaboration and innovation, and further attract the most in-demand international talent to the region.
Strategic investment in critical infrastructure is also essential to ensure the region has the capacity needed to support future growth and development. AmCham members highlight housing, energy, transport and connectivity as key areas that require the most urgent investment from government to help attract business and talent to the region.
In AmCham’s latest quarterly FDI Insights survey, 100% of respondents said the availability of residential accommodation is important to retaining and attracting FDI jobs in Ireland. The availability of residential accommodation was highlighted as the biggest challenge to overcome for companies investing and expanding in Ireland.
AmCham understands that housing is a key element supporting the economy and is committed to continually reviewing housing targets with essential amenities and infrastructure to accommodate continued long-term population growth. I have been claiming that. AmCham also recommended developing a world-class plan to consider international best practices on housing provision.
It is good to see that Ireland is now on track to achieve its target of building 33,000 homes a year by 2030, with last month’s report from Goodbody Analytics showing that The number is expected to reach 35,000 units by 2024, the highest number in 15 years. This increase needs to be sustained into the future.
Providing and strengthening critical transport infrastructure is also essential to ensuring our region remains well connected to global supply chains into the future. Providing enhanced road and rail infrastructure can support regions of Ireland as global hubs for talent and innovation for years and decades to come. This will support local bases in securing and attracting human resources, further increasing their attractiveness as a destination for future inward investment.
AmCham’s quarterly FDI Insights survey found that 98% of respondents said they would be concerned about continued growth and investment in Ireland once Ireland’s major airports and ports reach 100% capacity.
Given this, we prioritize providing balanced air connectivity that supports Ireland’s regional airports including Cork, Shannon, Donegal, Knock and Kerry, as well as Ireland’s major airports and ports to support future business needs. Overall capacity development must be prioritized.
Investing in sustainable infrastructure and energy solutions is also key to supporting balanced regional development and achieving Ireland’s climate goals.
AmCham members are already at the forefront of this agenda. In AmCham’s FDI Quarterly Insights survey, 42% of respondents said they aim to be carbon neutral by 2030, and this rises to 64% by 2040. Sustainability is on par with artificial intelligence as the most popular research field currently being conducted around the world. our members.
However, to ensure companies meet their climate goals, it is important to develop a business roadmap based on a climate change action plan with clear objectives, measures and specific timeframes. . To ensure companies meet their climate goals, it is important to provide guidance to help companies meet sustainability reporting requirements and minimize additional administrative burden.
When AmCham members asked what Ireland should prioritize when it comes to tackling climate change, investing in renewable energy solutions was the top choice.
AmCham has consistently advocated the implementation of medium- to long-term strategies focused on energy self-sufficiency, exports and increased development of renewable energy sources, particularly the potential of offshore wind, wave, solar and green hydrogen. is focused on.
This is critical to ensuring energy cost and supply security and preserving FDI jobs in Ireland.
We know that Ireland has continually proven itself to be a safe and reliable partner for U.S. business. A recent survey showed that 91% of member companies view Ireland positively as an investment destination.
However, if Ireland wants to maintain this reputation and continue to attract US companies to the region, it must build on its existing foundation and track record and prioritize regional development in terms of investment in critical infrastructure and the green transition. It is necessary to put