Promising pipeline for ongoing US investment in Ireland
Global logistics firm CH Robinson plans to recruit more than 30 technology professionals in the next three years as part of its investment in Cork, one of many US-based companies to invest in Ireland in recent years following engagement with IDA Ireland.
, IDA’s territory director for the Midwest and Southern regions of the US, talks to Darragh Bermingham
Ireland’s track record, stability and talent is proving key in ensuring investment from the United States in regions across the country.
In preparation for a post-pandemic world, the IDA is working to ensure that investment continues, and that counties and regions across Ireland feel the positive impact of that.
Despite the Covid-19 pandemic, the latest IDA report, published in December last year, revealed that Ireland saw the highest ever employment creation figures from Foreign Direct Investment (FDI) in a single year in 2021.
Investment from North America made up some 64% of this investment last year.
With eight offices in the US and one in Canada, the IDA enjoyed a hugely successful year in 2021.
“Ultimately it’s about the track record we have in Ireland and the awareness companies have in terms of what Ireland has to offer,” explained Paul Veale, IDA’s territory director for the Midwest and Southern regions of the US.
“It’s about building the networks, identifying the decision makers and working with the movers and shakers.
“But we’ve benefited hugely from that track record in Ireland.” Mr Veale highlighted Northern Trust and healthcare giant Abbott as prime examples of that track record.
The latter has been operating in Ireland for 70 years, and just last year, announced plans to invest around €40m in its Clonmel site.
Northern Trust meanwhile, employs around 1,400 people in the Limerick area, and has made the region a popular one for US companies seeking to invest in Ireland.
“It breathes confidence,” explained Mr Veale.
“So when the likes of Horizon Pharma from Chicago are looking for their first manufacturing facility, they see the track record, stability and talent that is available in Ireland.
“For us then, it’s about making sure we’re connected to the right people and we’re engaging with the companies,” he added.
There are currently more than 900 US companies operating in Ireland, employing tens of thousands of people across the country, and the IDA is reporting an increase in the number of companies keen to set up here.
In January 2021, global logistics firm CH Robinson announced plans to invest in Cork without ever visiting the county.
The company revealed plans to develop a new technology centre in Cork, as well as plans to recruit more than 30 technology professionals in the next three years.
“CH Robinson felt really comfortable because of the track record of the companies there,” explained Mr Veale. “They also would have spoken to the colleges and some locally based companies and got a really good feel for the area.”
In November last year, US tech start-up Tegus announced plans to establish a new European headquarters in Waterford city with the creation of up to 100 jobs over the next two years.
“There was a time when perhaps people did not expect that kind of development in areas like Waterford, and the public might have assumed those jobs would go to Dublin or Cork,” said Mr Veale.
“We’re seeing really good opportunities coming in for other counties across the regions.”
Looking to the future of investment in Ireland, two key issues stand out: Covid-19 and Brexit.
As for the latter, Mr Veale said it is not really a deterrent for US companies who want access to EU markets and Ireland, the only mainly-English speaking country left in the EU, offers that gateway.
“From a US corporate perspective, they see the EU as a marketplace of half a billion people and they want access to that market and talent,” he explained.
In fact, some of the big moves involving US companies in light of Brexit have actually resulted in increased investment for Ireland. Bank of America, which relocated its European Headquarters from London to Dublin, is a prime example of that.
“That was a great win and a huge vote of confidence in Ireland.” From the perspective of US corporations looking to invest in places like Ireland for the first time, Brexit is “in the rearview mirror”, and is just one of a number of things to consider before investing abroad.
For US companies already in Ireland, it has actually had a positive impact, attracting talent to the Emerald Isle that may previously have gone to our UK neighbours.
“We would see studies from recruitment companies showing that talent is coming to Ireland where it would have gone to the UK in the past,” said Mr Veale.
“We’re also seeing certain activities that we wouldn’t have seen in Ireland in the past, in industries such as financial services, regulatory activities and more coming to Ireland so we’re actually benefiting in that regard.”
As for Covid-19, the working landscape has changed and will continue to change as a result of the pandemic, and awareness of that will be crucial to attracting further investment in 2022 and beyond.
The value of FDI in regional locations cannot be overstated as the future of work looks set to include a hybrid model as well as remote working options.
“It’s all about the best talent and businesses will go where that is - that’s why it’s hugely important that we’re seeing third-level institutes across Ireland respond to that,” said Mr Veale.
For some companies, the lure of being based in the capital city will always be there but the IDA has reported an increase in companies seeking to set up shop in other regions of Ireland to take full advantage of talent pipelines available.
The advancement of hybrid or remote working options, and the growing desire among the workforce for these to be an option, will also benefit the southwest and other regions across Ireland, as people will no longer feel forced to follow the work.
While the IDA enjoyed a record-breaking year in 2021 in terms of the level of investment secured, now is not the time to get complacent, particularly as we emerge from the global pandemic.
Ensuring timely physical and digital infrastructure development will be key in building on last year’s success.
“While we remain competitive, we can’t become complacent,” said Mr Veale.
“It’s hugely important that infrastructure development and planning keeps up with the level of interest in terms of investing in Ireland.
“For the most part, we’re able to overcome issues efficiently — that is why IDA has its own building program and strategic sites that are fully serviced and zoned appropriately, and that allows for a certain degree of certainty during the planning process which is hugely important for companies.”
The IDA has also recently added to its staff in the US and Canada, with more people located in the likes of Atlanta, Seattle and Toronto, as it seeks to secure even more investment for Ireland.
“We’re not getting complacent because it’s about putting ourselves in the best possible position to prepare for a post-pandemic world, to ensure we keep winning that investment and regional jobs.”
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