Regional investment in Ireland hits all-time job creation high

Denis Curran, head of Regional Development & Property with IDA Ireland, looks ahead to a bright future for regional FDI

Tue, 20 Feb, 2024 - 08:10

Denis Curran, IDA Ireland

The FDI outcome for Ireland in 2023 proved to be a strong one despite the many international headwinds and challenges.

Denis Curran, head of Regional Development & Property with IDA Ireland.

Over the course of 2023, a record 248 investments were secured of which 83 were first-time investments. Total employment in IDA client companies remained steady at just over 300,000.

Balanced regional development is a key strategic priority for IDA and this was reflected in the level FDI investment into the regions during 2023. In 2023, 132 investments were won across all regions representing 54% total investments. At the end of 2023, the number of people employed in IDA client companies in regional locations stood at 163,471, an all-time high.

Today, 54% of people employed in IDA client companies are located in regional locations. Companies headquartered in the United States make a significant and valued contribution to this regional footprint. In 2023, US companies were responsible for a number of notable investments in regional locations announced during the year.

In the technology sector, Analog Devices announced a further expansion of its national footprint with a €630m investment at its R&D and manufacturing facility in Limerick. This investment by the global semiconductor leader will provide an additional 600 jobs to its already significant presence in Ireland.

AMD announced plans for continued growth in Ireland through an investment of up to $135 million over four years. The investment will support the creation of up to 290 R&D roles in the areas of high-performance and adaptive computing across its sites in Cork and Dublin.

In Athenry, Dexcom announced an investment of €300m in its first glucose monitoring manufacturing facility to be based in Europe. The investment will lead to the creation of up to 1000 jobs over the next five years.

In September, MSD one of the world’s leading biopharmaceutical companies, announced the official opening of a new, state-of-the-art manufacturing site in Meath in addition to a significant expansion at its Carlow manufacturing site. The projects represent an investment of over €1 billion across both facilities and have led to the creation of 670 jobs.

In the South East region, Becton Dickinson (BD) announced plans to invest €30 million to expand its manufacturing facility in Enniscorthy, Wexford, creating 85 new jobs. The new investment in Enniscorthy follows other recent investments in the facility, including a €1.5 million project, supported by IDA, to install 1,300 solar panels at the facility, along with heat pumps totalling 1 Mega-watt.

Together, this investment will eliminate 300 tonnes of carbon dioxide annually, which will help BD meet its 2030 environmental sustainability goals. The profile of these investments is reflective of Ireland’s continued attractiveness as a location to invest in. They also strengthen Ireland’s reputation as a proven FDI location for complex, capital-intensive investments at scale in sectors and regions where we have a significant track record of delivery.

Mike Fairbourn, general manager, UK & Ireland with Becton Dickinson (BD), Minister of State Neale Richmond, Mary Buckley, executive director with IDA Ireland, Roland Goette, BD’s president of EMEA, launching BD’s new €4m R&D facility in Blackrock, Dublin, and a new €30m investment to expand its manufacturing facility in Enniscorthy, Wexford, two investments creating 85 new jobs in Ireland.

The economic and social impact of FDI investment extends beyond employment creation. There are substantial spillover effects that benefit local and regional economies as well as having a positive impact nationally. In 2022 expenditure by IDA client companies on Irish-sourced services and materials increased by 15.7% to €13.8bn; capital expenditure increased by 49% to €15.5bn and payroll increased by 12% to €22.1bn.

A key enabler of balanced regional development is the availability of competitive, sustainable property solutions aligned to investors' needs. IDA is making significant investments in this area. In 2023 IDA completed construction of advanced building solutions in Waterford, Carlow and Athlone and commenced construction of new buildings in Sligo and Galway with new regional building projects planned for 2024.

A key area of focus for IDA in 2024 will be to partner with and support our client companies on their respective transformation agendas in the areas of Innovation, Talent Development, Digitalisation and Sustainability. The twin transition of Digital Transformation and Sustainability is recognised as a competitive necessity for many clients especially in the manufacturing sector as they seek future proof the competitiveness of their operations. In 2023, IDA Ireland supported 25 sustainability projects focused on carbon abatement while over €1.4bn was committed by IDA clients on research and innovation projects. These investments will underpin clients existing operations in Ireland while also positioning them for new growth and investment opportunities.

In order to build on this positive momentum into 2024 we must continue to create the conditions regionally and nationally that enables Ireland to compete for and win mobile FDI. IDA Ireland looks forward to collaborating with regional and national stakeholders in this regard and to collectively positioning Ireland to compete for and win new investments in 2024.