American Chamber president: US firms more vital than ever

Despite the pandemic, 2021 marked the highest ever annual job creation figures by the multinational sector in Ireland, says AmCham's president

American Chamber of Commerce Ireland CEO, Mark Redmond, with US Treasury Secretary, Janet L Yellen, and Ireland’s Finance Minister, Paschal Donohoe, last November in Dublin , for the American Chamber’s Business Roundtable with 14 leaders of US and Irish multinational corporations. Occurring between the G20 meetings in Rome and COP26 in Glasgow, this roundtable focused on the historic Organisation for Economic Co-operation and Development (OECD) Inclusive Framework/G20 global tax
agreement, supported by 136 countries. Photo: Julien Behal

Catherine Duffy, president of the American Chamber of Commerce Ireland, looks at the two-way success story of US-Irish business relations

Catherine Duffy, senior vice president and general manager with Northern Trust in Limerick, and president of the American Chamber of Commerce Ireland.

It is well known that periods of upheaval and uncertainty often give people clarity on the things that are most important to our lives, societies and economies. While US multinationals have long been viewed as a central aspect of our economic landscape, the Irish public recognised how truly integral they are to our society amid the pandemic.

In 2021, 86% of the Irish public said they believe US multinationals were critically important during the pandemic while 93% said they believe US Foreign Direct Investment (FDI) is critical to Ireland’s post Covid-19 recovery.

Despite the uncertainty brought about by the pandemic, 2021 marked the highest ever annual employment creation figures by the multinational sector in Ireland. US multinationals accounted for 64% of all FDI in the country last year, bringing the total number of US companies operating in Ireland to almost 900. These businesses directly employ over 190,000 people and indirectly support over 152,000 jobs in the wider economy. In 2020, US companies spent more than €12.3bn on payroll, over €8.8bn on goods and services and invested €6.5bn on capital expenditure.

This continued investment has played a critical role in supporting the Irish economy throughout the pandemic. In 2021, Corporation tax was on a par with Vat as the State’s second highest revenue source at €15.3bn. The employment created by US multinationals also generates significant income tax for Government. In 2021, income tax receipts of €26.7bn were recorded and this State income has helped to provide crucial pandemic supports to people and businesses across the country.

As the FDI sector looks to play its part in the wider economic recovery, I will be using my platform as president to amplify some important messages:

Firstly, AmCham members are playing a crucial role in the development of Ireland’s regional locations. In 2021, more than half of all multinational investment went to regional locations, creating significant employment.

In the Mid-West region alone, multinational companies employ over 25,000 people. When we look to Ireland’s west coast, eight of the world’s top 10 med-tech companies have a base in Galway contributing to Ireland being recognised as one of the top five global hubs for med-tech. As the general manager of Northern Trust Limerick and the former chair of AmCham’s mid-west region, I understand that a sustainable economy requires balanced regional development and a strategy that reflects the strengths and assets of our various regions. I look forward to ensuring that investment in Ireland’s regional hubs remains a priority for AmCham in 2022.

Secondly, Ireland is increasingly being chosen as a location for US multinationals to base their global roles and international leadership teams, in areas including supply chain management, sustainability, tax, and cyber security. As the only common-law English speaking country in the European Union, Ireland now acts as the main bridge between the US and Europe, making Ireland the ideal location for companies to base their global teams. Through AmCham, these global teams are provided with the opportunity to collaborate and share knowledge among their peers in similar global roles. This critical networking opportunity will also help in the continued attraction of US multinationals to Ireland, future proofing the pipeline of inward investment.

Thirdly, AmCham members are leading the way in sustainability and the fight against climate change. US multinationals in Ireland are among the most ambitious when it comes to pursuing our sustainability targets, from our members in the financial sector who are incorporating green financing as a means to offer environmentally friendly products and practices, to our energy sector members, who are focusing on the production of clean energy to power the country into the future. AmCham fully supports the Government’s commitment to transition to a carbon neutral economy by 2050, as well as the EU’s increased decarbonisation target of 55% emission reductions by 2030. Many of our members are aligned to more ambitious sustainability targets and have taken significant steps to make all aspects of their operations more environmentally friendly and with some already powering aspects of their operations with renewable energy.

US multinationals in Ireland have found a “home away from home” and are committed to continually working to better that home for the benefit of our society and economy.

In the face of uncertainty, our teams have held strong to their values of integrity and the importance of community, and supported those most impacted by the Covid-19 pandemic.

As Ireland begins its second centenary of independence, we must acknowledge the extraordinary positive impact that US multinationals have on our country, and ensure we safeguard Ireland’s reputation as a world-leading location for inward investment