US multinationals to increase employee numbers in Ireland over next year
60% of US multinationals that are members of the American Chamber of Commerce Ireland plan to increase employee numbers here over the next year.
The findings of a new survey carried out by the American Chamber also show that a further 32.5% of US companies say they will maintain their current workforce levels.
Ahead of an event in Dublin today to celebrate US Independence Day, AmCham surveyed its members current views on Ireland as a destination for growth and further investment.
The companies included in the survey, which was carried out in the last week, represent around 52,000 of the employees within US multinationals across the country.
Nine in ten survey respondents say their corporate headquarters have a positive view of Ireland as an investment location, while 68% already have plans to invest in Ireland over the next five years.
However, almost a third point to housing as the most important challenge to overcome for their company to invest and expand here.
Just over a quarter, 26%, say cost competitiveness is the most important challenge, while 10.5% say skills shortage is the number one challenge.
Other challenges include delays and complexity of the planning process, supply chain disruption, and the need to enhance R&D tax incentives.
The CEO of the American Chamber says Ireland is “a strategic hub for innovation and global decision-makers in major American corporations”.
When asked what the biggest risk is to continued Foreign Direct Investment in Ireland over the next five years, members cited housing as the biggest risk at 31%, ahead of public infrastructure, trade tariffs, labour costs and availability of skilled talent.
92.5% of the respondents say they have increased or maintained investment artificial intelligence (AI) this year.
Almost two thirds, 65%, plan to increase investment in AI, Automation or Data Analytics Initiatives.
When asked how they expect the AI transformation to affect their business over the next five years, 82.5% said they expect it to result in either increased or maintained investment.
Paul Sweetman says almost 7.5% of Ireland’s entire population is employed, directly or indirectly, by US multinationals.
“On the flip side, Ireland is the sixth largest source of FDI into the US and Irish companies are employing almost as many people in the US as US companies are employing in Ireland.”
“It truly is a genuine two-way economic relationship,” according to Mr Sweetman.
He says while the geopolitical backdrop of trade, tariffs and uncertainty are “unquestionably causing challenges for our members,” he says AmCham sees “a real and emerging optimism that the business community is ready to get moving through accelerating innovative projects and strategic investments”.
“The single biggest factor that will impact Ireland’s long-term growth will be our own national competitiveness, a factor wholly within our control.”
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