A Pillar for Prosperity – the US-Ireland Business Relationship
Paul Sweetman
AmCham CEO
The two-way US-Ireland trade and investment relationship is an economic success for both nations.
Consecutive US and Irish administrations have recognised the mutual benefits of our continued collaboration for growth. This collaboration has allowed us to become strong trading partners, developing a two-way relationship that exceeds €1 trillion ($1.03 trillion) every year. It has allowed us to be become leaders in innovation, research and development, driving economic expansion and job creation in both Ireland and the US. And it has allowed us to create strong and resilient global supply chains between the US and Europe, supporting the transatlantic economy.
Key political leaders in both countries have highlighted the significance of this bond.
When US President Donald Trump was presented with the Shamrock Bowl by former Taoiseach Leo Varadkar during the 2019 St. Patrick’s Week celebrations he said: "We have literally never had a better relationship with Ireland than we do right now...We’re doing trade. We’re doing many, many things with Ireland. And it’s been a wonderful friendship. Never been stronger than it is today.”
At that point, Ireland had already grown to be the 9th largest investor in the US and American companies were directly supporting 160,000 jobs in Ireland. In the period since, this partnership has continued to grow. Ireland is now the 6th largest investor in the US, and direct employment by US MNCs in Ireland has increased by 32 percent, to 210,000 people over the period.
The two-way economic relationship is continuing to reach record levels of growth and investment in both the US and Ireland, and in a statement earlier this year, An Taoiseach, Micheál Martin noted that “Our task is to further strengthen this partnership, and to create sustainable jobs and prosperity on both sides of the Atlantic.”
President Donald Trump has also continued to recognise the important role that Ireland plays in supporting US businesses. In a visit to Ireland in 2023 he said that "Ireland has done a good job” in attracting business and noting that companies “really love it here."
Throughout this report you will see contributions from business leaders and stakeholders in Ireland, the US and in Europe which highlight that Ireland’s success in attracting US investment is built on a foundation of consistent pro-business policy decisions by consecutive government administrations, our skilled workforce, our stable and competitive business environment and our unique position which provides strategic access to the EU market for US companies.
These competitive advantages have resulted in 9 in 10 respondents to a recent AmCham survey saying that their corporate headquarters have a positive view of Ireland as an investment location.
When asked about the top reasons for their organisation's confidence in the Irish economy, 35 percent cited the country’s ‘stable, pro-enterprise ecosystem’, while 31 percent said access to our ‘highly educated and skilled talent pool’.
Furthermore, 97 percent of respondents say Ireland is competitive when compared with other advanced global economies, with 45 percent saying it is very or extremely competitive.
As Ireland looks to grow inward investment and enhance the US-Ireland relationship, we must focus on addressing the challenges and opportunities that currently exist for business and talent, particularly housing, infrastructure and cost-competitiveness.
In AmCham’s November 2024 FDI Insights survey, 32 percent of respondents reported that cost-competitiveness is the number one challenge impacting the expansion of their organisation in Ireland. This was up from 19 percent in July and 10 percent in March of last year.
While Ireland still ranks as the 4th most competitive location in the world for investment, we are currently ranked 46th for prices, 20th for scientific infrastructure and 38th for basic infrastructure, highlighting some of the areas requiring continued investment from Government.
As such, the provision of critical infrastructure, particularly housing infrastructure, remains a key priority for AmCham and our members. 59 percent of respondents to an AmCham survey said that housing is the area of infrastructure development that requires the most urgent investment from Government. Additionally, 20 percent of respondents said that housing is the main barrier to filling vacancies in their operations here.
It is positive to see the progress being made in this area. In 2024, the Building Control Management System received housing commencement notices for the construction of 60,243 new homes. This was an increase of 84 percent on 2023 housing commencements and the highest headline figure seen since the Celtic Tiger.
However, as Ireland’s population continues to grow, AmCham has consistently advocated for the delivery of housing under the ‘Housing for All’ plan and the ongoing revision of housing targets to cater for current and future needs.
As Ireland continues to enhance its offering to business, the formation of groups including the national Consultative Group on International Trade Policy, on which AmCham will sit, and the US-based Strategic Economic Advisory Panel, will be essential in supporting Ireland’s efforts to enhance the already strong two-way relationship.
AmCham will also continue to foster opportunities for members to collaborate, develop meaningful connections and share best practice through our wide range of networks, leadership and development programmes and networking events.
AmCham remains committed to ensuring that the US-Ireland trade and investment relationship not only endures but flourishes in the years ahead. By addressing key challenges and seizing new opportunities, we can cement our place as one of the world’s most dynamic economic alliances.