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Despite global economic headwinds, 2023 has been another stellar year for US investment in Ireland. US multinational companies here now employ more than 375,000 people directly and indirectly and spend €31 billion in the Irish economy every year.
“It’s been a terrific year for investment announcements by US multinationals in Ireland,” says American Chamber of Commerce Ireland (AmCham) chief executive Mark Redmond. “And there has been a real focus on enhancing Ireland’s position as a global centre of excellence for semiconductor production and research.”
He points to a number of key investments in this regard. “AMD announced an investment of up to $135 million (€124 million) in its Citywest operation. The investment will fund several strategic R&D projects for the company. In Limerick Analog Devices is investing €630 million in its semiconductor R&D and manufacturing facility.”
The Analog investment is expected to create 600 jobs and triple production capacity at the facility. “This project is very important for Europe and is being supported by the EU under the Important Projects of Common European Interest on Microelectronics and Communication Technologies programme,” adds Redmond.
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And the biggest of them all was the recent opening of Intel’s new €17 billion Fab 34 semiconductor manufacturing plant in Leixlip.
“This will bring total employment by Intel in Ireland to 6,500,” Redmond notes. “And it brings Intel investment in Ireland to over €30 billion, making it by far the biggest private-sector investment in the history of the state. Leixlip is now Intel’s biggest manufacturing campus in Europe.”
These investments are of significant strategic importance for future investment from the United States.
“The US administration is speaking about friend shorting when it comes to overseas investment. They are seeking to work with trusted countries across the world which they can rely on and collaborate with. Ireland is at the top of that list,” says Redmond.
A variety of factors have contributed to that lofty position. “We have a track record of hosting advanced manufacturing and research operations over the past seven decades,” Redmond points out. “Ireland is one of the world’s longest continuous rules-based democracies, which offers a very positive environment for business. These are things we often take for granted but they are very valuable in today’s world.”
The continuing focus on balanced regional development is also welcome, he adds. “We are seeing new investments and expansions outside of Dublin. Abbott’s latest investment in Kilkenny is its tenth site in Ireland – that’s really remarkable. We also saw Dexcom select Ireland for first European manufacturing site in a €300 million investment in Athenry. And BD is investing €30 million in a new manufacturing plant in Enniscorthy.”
Another notable feature of the past year has been the continued expansion of direct air links to the US. “These include new Aer Lingus routes to Denver, Colorado and Minneapolis/St Paul in Minnesota,” says Redmond. “This connectivity is vital for Irish companies investing in the US. Ireland is the ninth-biggest investor in the US, with companies like Glanbia, Kerry and Ornua, who have become leaders in nutrition there.”
Of course, there are challenges which have to be faced if Ireland is to maintain its attractiveness for US investment.
“We definitely do have capacity issues,” Redmond notes. “In some ways that’s a function of our success in attracting investment. Everywhere you look there are challenges in residential accommodation, the energy supply grid, transport infrastructure, public and private, and cybersecurity. But we are seeing some incredibly ambitious projects being undertaken to address them.”
There are also opportunities. Redmond points to report of the Shannon Estuary Economic Taskforce Report which found that 50,000 jobs could be created by exploiting the green energy potential of the estuary.
“Ireland could become the Saudi Arabia of green energy,” he says. “If the offshore wind potential of the Shannon Estuary is fully harnessed it could meet the energy needs of Germany. Ireland could become an energy exporter. We have this great resource in the west and we need to harness it.
“And wind is not going to run out, unlike fossil fuels. Other countries are ahead of us in realising the potential of offshore wind but we can learn from them. Sometimes being the second mover can be advantageous.”
He believes the new Planning and Development Bill will help to address the housing issue.
“It is vital that we get a planning system that is fit for purpose to meet the needs of one of the world’s most advanced economies,” he says. “We are not looking for certainty of outcome, we are looking for certainty of timelines and process. Labour is not in huge supply, of course, so we also need agility and innovation in regard to housing construction.”
The inaugural US Ireland Business Awards in May were among the highlights of the past year for AmCham.
“The Global Impact Award is presented to a team or organisation for a project that has had a significant positive, global or international impact on markets or society,” says Redmond. “It was very good to be able to present it to Icon, an Irish multinational with a large presence in the US. The company carried out the largest clinical trial in US history for vaccines during the pandemic.”
Other awards presented were the Global Leadership Award, which went to Lorna Martyn for her role in the development of the Fidelity Ireland technological hub in this country, and the Global Community Award which went to Qualtrics 5 for the Fight EMEA, which has raised more than €1.15 million over the past five years to fund cancer research.
Looking ahead to 2024 and beyond, Redmond highlights the importance of the Government’s Global Ireland 2025 initiative.
“We have already seen new consulates and embassies opening as well as the expansion of the IDA and Enterprise Ireland’s footprint around the world as a result of the initiative,” he says.
“It’s also great to see the promotion of Irish arts, heritage and culture to new audiences across the world. The increasing diversity of our culture is also very important. One sixth of the people living in Ireland were not born here. That has been a positive and enriching development for Ireland.
“We now have wonderful sporting ambassadors like footballer Rianna Jarrett and cultural ambassadors like singer Tolü Makay. These are extraordinarily powerful voices on the global stage. This gives me great confidence for the future.”