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Nine in ten US multinational companies operating in Ireland expect to maintain or increase their employment levels over the next 12 months, according to a new survey published by the American Chamber of Commerce Ireland (AmCham).<\/p>\n
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The findings were released to coincide with AmCham’s Independence Day lunch at the Clayton Burlington Hotel, marking the 250th anniversary of US Independence. More than 450 members and guests attended the event, where Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation Jack Chambers was guest of honour. The event was sponsored by PwC.<\/p>\n
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The survey highlights continued confidence in Ireland as a location for investment and growth, with 90% of respondents saying they expect to either maintain or expand their workforce over the coming year. Of those, almost half (48%) plan to increase employee numbers, while 70% said their global headquarters intend to invest further in Ireland over the next five years.<\/p>\n
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However, businesses also pointed to several challenges that could affect Ireland’s future competitiveness.<\/p>\n
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A third of respondents identified cost competitiveness as the single biggest obstacle to future investment and expansion, followed by housing (27%). Looking further ahead, housing and public infrastructure constraints were both cited by 22% of respondents as the greatest risks to attracting and retaining foreign direct investment over the next five years, with trade tariffs also emerging as a concern (16%).<\/p>\n
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Energy infrastructure also remains an issue, with more than half (54%) saying Ireland’s current energy infrastructure and security of supply represents a competitive disadvantage compared with other international investment locations.<\/p>\n
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The survey also points to a significant acceleration in investment in artificial intelligence and emerging technologies. Two-thirds (66%) of respondents plan to increase investment in AI, automation and data analytics initiatives over the next 12 months, while half (50%) believe AI adoption and emerging technologies represent the biggest business opportunity over the next five years.<\/p>\n
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Despite that optimism, access to skilled talent remains a challenge, with 52% saying the availability of AI expertise is limiting their ability to expand AI-related activity in Ireland.<\/p>\n
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Companies also expect to increase investment across several strategic areas over the coming year, including employee upskilling and training (51%), research and development (45%), digital transformation and technology upgrades (42%), and talent acquisition (39%).<\/p>\n
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When asked what measures would most encourage future investment, 21% of respondents said enhancing research and development incentives would have the greatest impact, followed by improving access to skilled talent (18%). Half also said enhanced tax incentives would increase their R&D activity in Ireland, while improved infrastructure was identified by 19%.<\/p>\n
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Looking ahead, respondents believe specialist AI and machine learning talent will be the most critical area for Ireland’s future growth, cited by 55% of companies. Research and development (15%) and life sciences (9%) were the next most important sectors.<\/p>\n
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Planning reform was identified as the highest regulatory priority for simplification to support investment in both Ireland and Europe, selected by 30% of respondents. This was followed by energy regulation (24%) and data and AI policy (15%).<\/p>\n
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With Ireland assuming the Presidency of the Council of the European Union, over a third (36%) of respondents said improving European competitiveness and productivity would represent the most valuable outcome for their business. Businesses also highlighted reducing regulatory burdens, simplifying AI and digital policy, and strengthening the EU Single Market as key priorities.<\/p>\n
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Commenting on the findings, AmCham CEO Paul Sweetman said the survey reflects the enduring strength of the economic relationship between Ireland and the United States.<\/p>\n
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“The US-Ireland relationship has evolved into one of the world’s most successful economic partnerships, built on decades of investment, innovation and collaboration,” he said.<\/p>\n
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“Irish companies employ almost as many individuals across all 50 US states as American companies employ in Ireland. Over 1,000 US companies operate in Ireland, contributing more than \u20ac40 billion annually to the economy, while Irish companies have invested $390 billion into the US economy.”<\/p>\n
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Mr Sweetman said that while global volatility is likely to continue, stability and competitiveness will become increasingly important.<\/p>\n
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“Ensuring that Ireland remains competitive is critical to maintaining success. Ninety per cent of our members surveyed over the past week said they plan to increase or maintain employee numbers in the next 12 months, while 70% said their corporate headquarters already have plans to invest further in Ireland over the next five years.<\/p>\n
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“This optimism is also reflected in the very positive half-year results announced by the IDA earlier this week.<\/p>\n
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“This year’s Independence Day celebration coincides with both Ireland’s EU Presidency and the United States’ 250th anniversary. Through continued collaboration, I am confident Ireland can build on its position of strength and that the two-way transatlantic relationship will continue to thrive.”<\/p>\n
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