President's Perspective
US MNCs Helping Ireland's Economy and Society to Thrive
By Elaine Murphy AmCham President for 2024
US multinationals (MNCs) in Ireland are playing a crucial role in supporting Ireland’s economy, creating jobs, and promoting greater diversity and inclusion.
In 2022, US MNCs spent €41 billion in the Irish economy across capital expenditure, payroll, goods and services. This was an increase of 34 percent on the already significant spend of €30.7 billion in 2021.
As the collective voice of US companies in Ireland and the leading business organisation supporting the Transatlantic business relationship, the American Chamber of Commerce Ireland (AmCham) understands the critical importance of this investment and the impact that it can have on individuals and on society in areas including job creation, diversity, and gender balance.
Indeed, in 2023, there were 970 US companies in Ireland directly employing almost 210,000 people and indirectly supporting a further 168,000 jobs. In the context of diversity and inclusion, some 22 percent of all employees at foreign direct investment (FDI) firms in Ireland are international. And in terms of gender balance, 77 percent of respondents to a recent AmCham FDI Insights survey said that more than 30 percent of senior leadership roles within their organisation are held by women.
As AmCham’s 2024 President, I am proud to be able to highlight the extraordinary work being undertaken by US companies from here in Ireland and the factors that attract business and talent to locate here.
However, we must not take the investment of US business and their contributions to the Irish economy, and society for granted.
Throughout my 2024 Presidency, I will place particular focus on three key priorities for AmCham members to ensure continued foreign direct investment:
Sustainability and Sustainable Energy Solutions
Balanced Regional Development and Establishing Regional Clusters of Excellence
The Development of Critical Infrastructure
Sustainability and Sustainable Energy Solutions
In achieving Ireland’s climate targets, there must be a continued focus on prioritising investment in sustainable energy infrastructure and green energy solutions.
The natural resources available in Ireland mean it is ideally placed to be a European hub for sustainability and renewable energy. Studies have shown that the Celtic Sea alone can develop up to 50GW of floating offshore wind capacity by 2030. This is significantly more than the offshore wind potential of Germany which is due to reach 40GW by 2040 or France which is due to reach 40 GW by 2050.
A focus on the Increased development of renewable energy sources, accompanied by a medium to long-term strategy on energy self-sufficiency and exports, will help ensure security of energy costs and security of energy supply and will have a direct positive impact on the ability of businesses to grow and create jobs in communities throughout the country.
In a recent AmCham survey, 100 percent of respondents said that certainty regarding energy costs and supply is important to maintaining FDI employment in Ireland.
Additionally, AmCham members have already shown their commitment to addressing the climate crisis. In an AmCham Quarterly FDI Insights survey, 64 percent of members said they aim to be carbon neutral by 2040, while 50 percent are supporting SMEs in their value chain to reduce their emissions.
However, AmCham has advocated for the development of a roadmap for business, building on the Climate Action Plan, with defined objectives, measures, and concrete timeframes which it believes will be important to ensuring businesses can meet their climate targets.
Balanced Regional Development and Establishing Regional Clusters of Excellence
AmCham believes that an increased focus on the clustering of key industries in regional locations will be crucial in supporting balanced regional development and enhancing Ireland’s business ecosystem.
Ireland’s regions are already home to highly-skilled talent. 65 percent of all working professionals in Ireland live in regional locations outside of Dublin. Of the 256,000 students enrolled in higher education last year, 200,000 were from regions outside of Dublin and 152,000 were enrolled in institutions in regional locations.
This is reflective of the strength of the educational institutions in Ireland’s regions. These include University College Cork, which is ranked in the top two percent of universities globally, University of Limerick, which launched Ireland’s first master's degree in artificial intelligence in response to industry demand, University of Galway, where 96 per cent of graduates gain employment within six months of graduation and the Munster, Atlantic, South East and Shannon Technological Universities with their close links with industry and research.
Businesses are aware of this competitive advantage within Ireland’s regions, and this has contributed to the fact that 56 percent of all direct and indirect employment supported by US companies in Ireland last year was in regional locations.
In further enhancing the attractiveness of Ireland’s regions, AmCham has advocated for an increased focus on the clustering of key industries in regional locations. Some of Ireland’s regional locations have already seen success with this approach. There is a thriving MedTech sector in Galway, Sligo and the Midlands, Pharma and Cyber clusters in Cork, engineering in Clare and digital manufacturing clusters in Limerick.
In further enhancing this strategy, AmCham has recommended that Ireland develop a global campaign to showcase the attractiveness of Ireland’s regions with a focus on supporting clusters of excellence.
This would allow Ireland to develop a competitive advantage in areas of strategic importance and potential, particularly in the twin priorities of the green transition and digital transformation and addressing the associated challenges.
Development of Critical Infrastructure
Strategic investment in critical infrastructure projects relating to housing, transport and connectivity must be prioritised to ensure the necessary capacity to support current and future business investment.
AmCham members continue to identify housing as the area of infrastructure requiring the most urgent investment from Government and in a recent AmCham FDI Insights survey, 100 percent of respondents said the availability of residential accommodation is important to maintaining and attracting FDI employment to Ireland.
In this context, AmCham has recommended the undertaking of world-class planning, to examine best international practice on housing delivery and has consistently advocated for the ongoing revision of housing targets.
It is positive to note that Ireland is now on track to achieve its target to build 33,000 houses a year until 2030, with a report from Goodbody Analytics estimating that new home completions will reach 35,000 in 2024, the highest figure in 15 years. This increase needs to be sustained into the future.
Additionally, the further development of Ireland’s transport infrastructure and sustainable public transport solutions will be core in supporting Ireland’s place in global supply chains, empowering talent to travel to and from work and aiding Ireland’s journey to net-zero.
In this context AmCham has advocated for the delivery of MetroLink and Dart+, in line with Government’s commitment as laid out in the Climate Action Plan and the development of vital road infrastructure to support job creation and housing development and allow for the development of key infrastructural projects.
The delivery of balanced air connectivity to support Ireland’s regional airports, including Cork, Shannon, Donegal, Knock and Kerry must be prioritised, alongside developing capacity across Ireland’s key airports and ports will also be important in supporting future business needs.
Amid strong global competition for business and talent, AmCham will continue to advocate on our members behalf, to ensure continued growth in our FDI sector and to enhance Ireland’s overall competitiveness for business and talent.