Report says this is a ‘one-off event’ as it points to Irish investment in America
Stressing that Ireland continues to attract more than its fair share of global business, the chamber’s new US Ireland Business Report does point out investment from America declined last year due to firms moving money back, although it stated: “We believe this was a one-off event.”
Cross-border FDI has slowed in recent years due to de-globalisation of manufacturing, a push to produce at home and the rise of investment protectionism, the report says.
Between 2020 and the third quarter of last year, more US capital left Ireland than arrived, with a net outflow of $10.5bn (€9.1bn). Among the countries that saw big US investment in-flows in that time were the Netherlands and UK.
Just over 1,000 US companies employed 245,000 people here last year. There are over 90 pharma companies and nine of the top 10 tech and software firms. The report is keen to stress FDI is a two-way street and that Ireland is among the top five countries investing in America.
To address this skills deficit, Ireland needs to take decisive action
Paul Sweetman, chief executive of the American Chamber, said: “Irish companies employ over 200,000 people across all 50 US states. Ireland is now the fifth largest source of foreign direct investment into the US, with Irish companies having invested close to $390bn in the US economy.”
Energy security has become a key consideration for the boards of big US companies when they are considering investments and they regard grid capacity and connection timelines as important factors.
In an article in the report, Dana Kendall, general manager of AbbVie Ireland, warned the country cannot become complacent and recent trends need to be considered with urgency.
“In Ireland, the average time for patients to access new medicines is 645 days which is significantly higher than the European average of 578 days,” she pointed out.
“Additionally, Ireland has the lowest rate of availability for new cancer medicines in western Europe, with just a quarter of 56 European Medicines Agency-approved oncology drugs since 2020 available to patients. This gap is particularly concerning as cancer is projected to become the leading cause of death in Europe by 2035.”
The AbbVie Ireland boss said Ireland must foster an environment where innovation thrives.
“That means ensuring regulatory predictability, rewarding innovation that addresses patient needs, and strengthening the talent and skills needed to keep pace with evolving technologies.”
Tara Tibbs, general manager of Eli Lilly in Kinsale, said in another article in the report that “there is room for improvement” in Ireland and staying at the forefront of innovation and growth will require continued investment.
“We hope that the medical innovations that companies like Lilly bring to society are valued and are able to reach patients rapidly,” she added.
Antony Jancic, country executive for Bank of America, warned economic growth will be stymied if Ireland doesn’t have enough skilled people.
“To address this skills deficit, Ireland needs to take decisive action,” he said. “We need to focus on scaling programmes that equip people with the right technical skills, but just as importantly, we must foster a culture of continuous learning. The education and training system must adapt, providing opportunities for upskilling and reskilling workers at every stage of their careers.”