IDA says outlook for investment remains strong

IDA secured 242 investments which included 89 expansions and 103 first-time investments

21.03.2023….New CEO IDA…

Despite global economic headwinds, IDA Ireland is expecting to see strong investment through the rest of this year as it announces 139 foreign direct investments have been secured since January with the potential to create over 12,000 jobs.

On Wednesday, IDA Ireland launched its annual report for last year as well as its mid-year results for 2023. Of the 139 investments announced, 52 were first-time investments in Ireland while 67 went to regional locations.

Michael Lohan, chief executive of IDA Ireland, said the strong results so far this year were achieved against a backdrop of “considerable global geo-political uncertainty, ongoing inflationary pressures, supply chain challenges, climate change and energy issues, as well as the ongoing Russia Ukraine conflict”.

Mr Lohan said that Ireland’s existing base of foreign direct investment is a “national core asset” that “we must continue to nurture and develop”.

“Beyond expenditure in the Irish economy, IDA Ireland clients make a considerable contribution to the public finances. Sectors dominated by IDA Ireland client companies account for an estimated 70% of corporation tax receipts and also make a significant contribution to income tax receipts,” he said.

Mr Lohan added that investors' commitment to Ireland remains strong and the country’s value proposition as a place to do business is a “compelling one”.

IDA Ireland said that the outlook for investment over the second half of the year remains strong. However, there are strong ongoing headwinds including persistently high inflation and downside risks including geopolitical uncertainty.

Among the investments announced so far this year include Siemens Healthcare’s new research and development (R&D) in Swords, which will create up to 100 jobs; ABB in Dundalk announced a €300m investment over five years, with the potential to bring 1,000 new jobs; as well as a €127m investment by PepsiCo in cork which will see the opening of additional manufacturing capacity and further investment in its R&D campus.

During 2022, IDA Ireland secured 242 investments which included 89 expansions and 103 first-time investments. Over half, 52%, of all investments went to regional locations.

IDA Ireland said there are now almost 1,800 client operations in IDA Ireland’s portfolio of multinational companies. One-third of client operations are located in Ireland for 20 years or more.

Employment in IDA Ireland’s client base reached record levels in 2022. As of October 31, 2022, total direct employment reached 301,475, a 9% increase on 2021 and accounting for 12% of total national employment.

IDA Ireland recorded job gains of 32,426 and losses of 8,407 for a net employment gain of 24,019 during 2022.

Enterprise Minister Simon Coveney said 2022 represented a “record year” for foreign direct investment and despite significant challenges in the global economy “we see this level of performance largely maintained in the first six months of this year".