Ireland fourth biggest US manufacturing destination

Ireland has climbed to become the fourth most important destination for US manufacturers investing overseas, according to a study by Deloitte.

The medium-term study, "Globalization Divided? Global Investment Trends of US Manufacturers", examines global investment trends of US manufacturers.

The survey found that Ireland was the 9th most important destination in 1999 but by 2002 Ireland had become the 4th most important destination behind Canada, the United Kingdom and the Netherlands. Ireland’s share of foreign direct investment (FDI) had grown to over €2bn in 2002.

The study by Deloitte indicates the emergence of a "Global Investment Divide", with US manufacturers’ foreign direct investment concentrating in higher wage countries, such as Ireland, Canada and the United Kingdom.

Meanwhile outsourcing and partnering has become the strategy of choice to source and market in lower-wage, fast-growing economies, such as Brazil, China, India, Korea and Mexico.

“The finding is consistent with what we have seen in Ireland over the past year, with further inward investment by organisations such as Intel,” according to David Hearn, Head of Consulting at Deloitte.

“This is very encouraging for Ireland given recent concerns about our competitiveness and is a clear indication that IDA Ireland continues to be a world leader in attracting quality foreign direct investment”.