US multinationals grow their investment in Ireland’s regions
Paul Kelleher of Qualcomm, southern chair of American Chamber of Commerce in Ireland.
Large multinational companies are continuing to choose regional locations when investing and expanding their operations in Ireland.
In 2022, 52% all multinational investment went to regional locations, which is a testament to the career opportunities, talent and quality of life available in the regions.
As Chair of the American Chamber of Commerce Ireland (AmCham) Southern Region, I am proud that in 2022, multinational companies employed over 52,000 people across the South-West region, an increase of 7.5% on 2021 figures.
Many US multinationals have a long history in Ireland’s regional locations, however, in recent decades, greater investment in the regions has cultivated a highly educated workforce, a great quality of life and provided enhanced connectivity through air, ports, rail and roads.
In the South-West region alone, there is a highly educated workforce with more than 41,000 students currently studying in higher education institutions, with University College Cork being ranked in the top 1.1% of universities globally.
Cork airport has direct connections to almost 50 destinations and the region is also home to research centres including the Nimbus Research Centre — Ireland’s largest dedicated Internet of Things Centre, the Tyndall National Institute Research Centre and MaREI, the Science Foundation of Ireland centre for energy, climate and marine research and innovation. These factors have contributed to Cork becoming a hub for sectors including digital, technology and cybersecurity.
However, there is still a significant opportunity for Ireland in developing our regions to attract inward investment. With balanced regional development, Ireland’s regions can act as a viable counterweight to the pull of Dublin, ensuring that business and talent can build on the opportunities offered by Ireland’s regional strengths.
With the increase in hybrid and remote working, it is crucial that the rollout of broadband connectivity and faster internet speeds are prioritised across the country to ensure operations can be maintained, markets can be reached, and people can work effectively from home.
Additionally, it is important that the key ambitions of the National Development Plan are adhered to and that there is a focus on the delivery of balanced air connectivity to support Ireland’s regional airports including Cork and Shannon to ensure Ireland’s regions remain a location of choice for US multinationals.
Ireland must also continue to prioritise investment in sectors where we are currently a leader, including in the digital sector. Ireland currently hosts nine of the top 10 US technology companies and all of the top five global software companies.
With the next wave of inward investment expected to come from emerging technologies such as artificial intelligence, robotics, and augmented and virtual reality, it is increasingly important that we put in place the physical infrastructure and digital supports to ensure Ireland is the destination of choice for these industries.
One area that will be increasingly important in this regard is strengthening and evolving Ireland’s position as a digital regulatory hub. With many US MNCs and global technology companies locating their EMEA HQ here, Ireland acts as the lead regulatory jurisdiction.
This status has allowed Irish regulators to develop world-class skills in ‘good regulation’ and has supported the development of trust between regulatory bodies, industry and the public.
Furthermore, factors such as the ‘country of origin’ principle and the ‘one-stop shop’ under the General Data Protection Regulation (GDPR) have provided certainty to business in terms of the regulatory bodies they must engage with, and the legislative and regulatory ecosystem in which they will operate. Maintaining this certainty for companies is crucial in continuing to attract inward investment.
In strengthening Ireland’s role as a digital regulatory hub, AmCham advocates for developing Ireland into a centre of excellence for regulation and ensuring Ireland is a strong advocate for the protection of the ‘country of origin’ principle at EU level.
It is important to note that AmCham members are also giving back to the economy and to their local communities. There are more than 900 US companies in Ireland, directly employing over 200,000 people and indirectly supporting more than 160,000 jobs in the wider economy. In 2021, US companies also spent €31.9 billion in the Irish economy on capital expenditure, payroll and goods and services.
Many AmCham member companies are also going further to support their local communities, providing financial support and volunteer hours to support charitable causes and community projects such as providing meal boxes to the elderly. In addition, many US multinationals are running programmes to encourage re-entry to the workforce and to remove barriers for women and under-served communities.
The positive impacts that US multinationals have on our society and economy are many and varied and as chair of AmCham’s southern region, I look forward to continuing to promote this investment in the southern region and across the country.
