For US companies navigating volatility, Ireland offers strategic advantages
Brian Conroy, Executive Vice President and Director North America, IDA Ireland.
Talent shortages, supply chain disruptions and intellectual-property threats are some of the top challenges US companies are contending with today across their global operations.
To minimise volatility in their business, companies are seeking a stable and supportive environment where they can operate — making Ireland an ideal location.
For decades, renowned brands like Microsoft, Johnson & Johnson and Mastercard have chosen Ireland as a location for their global operations because it offers both a gateway into the European market and strong incentives to do business here. And during challenging times, Ireland’s stability, pro-business policies, long track record of success and world-class talent pool have kept Ireland as a favourable business destination to operate.
Today, as US companies navigate both challenging market conditions and unpredictable world events, Ireland continues to deliver on their most pressing needs, such as:
Elections inherently bring about change. But one thing that’s remained constant across successive Irish governments — including the recently formed government — has been a commitment to pro-enterprise policies.
Ireland continues to have an internationally competitive corporate tax rate. And government supports like a 25% R&D tax credit, further incentivise multinational companies to choose Ireland when expanding their operations outside the US.
The Irish government’s priorities also align with those of US multinationals in key areas like sustainability. In fact, the Irish government actively works with US companies here on efforts like reducing their carbon footprint. It’s work like this that has contributed to IDA Ireland’s multinational customer base committing to more than $117 million in sustainability investments.
Meanwhile, Ireland continues to make progress on delivering the infrastructure that businesses need to thrive. This year marks the halfway point of Ireland’s National Development Plan, which is the country’s largest-ever financial commitment toward housing, climate and public transport.
The plan will benefit every region of Ireland, which is crucial because nearly 60% of the FDI investments in Ireland last year went to locations outside Dublin.
Trade-route disruptions and security risks aren’t the only threats to companies’ supply chains. Companies also face a shortage of their most critical asset: talent. Globally, nearly three in four employers say they’re struggling to find talent.
Ireland’s talent base has helped set the country apart for decades and is proving to be even more critical now. Today in Ireland, about 55% of people aged 25 to 34 have a third-level degree. That’s significantly higher than the 40% average across the EU. What’s more, Ireland gives companies operating here access to an EU workforce of more than 250 million.
Ireland’s education system produces workers who are ready for today’s jobs because it works closely with industry to design programmes that address their skills needs. And several efforts in Ireland are helping produce much-needed talent for fast-growing sectors.
In the life sciences sector, for example, the National Institute for Bioprocessing Research and Training (NIBRT) train about 5,000 people annually to work in bioprocessing and collaborate with industry on scientific research. This has helped Ireland retain a world-class life sciences industry, with 8 of the world’s top 10 pharmaceutical companies operating here.
Ireland is helping equip people with skills in AI, big data, networks and cybersecurity, which are the skills that are expected to experience the fastest growth in demand by 2030. Our country has the highest level of STEM graduates per capita in the EU among people aged 20 to 29. And our ADAPT and Insight research centres are producing graduates with skills for a career in AI.
One of the most common activities US multinationals turn to their Irish operations for is innovation.
Today, the amount of innovation work that’s underway in Ireland is five times what it was 10 years ago. And last year, IDA Ireland clients committed €1.9bn to R&D investments, which is the most ever in a single year.
One major source of innovation in Ireland today is Digital Manufacturing Ireland (DMI), a centre of excellence that opened in 2023 and ramped up its activities to full speed last year.
DMI aims to help manufacturers operating in Ireland to be more competitive using digital technologies. For example, DMI staff helped one American pharmaceutical company with Irish operations use its production data to model a manufacturing cell and explore opportunities for automating it.
Ireland has established itself as a focal point for companies in the AI space. OpenAI and Anthropic, for example, both established operations in Ireland this year. And Microsoft has said that Ireland is on the “world stage” for AI.
Continuing a legacy that lasts Ireland's ability to attract and retain FDI is a testament to both the decisions and the drive of the Irish people. We choose to maintain a stable economic and political environment.
We choose pro-enterprise policies. We choose to listen to and respect the perspectives of industry. But it’s our drive that puts us first in the OECD’s labour productivity ranking and compels us to achieve more — like putting Ireland at the heart of European and global digital developments.
As any US company that operates in Ireland knows, the value of this longstanding commitment far outlasts and outweighs any challenge of the day.
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