Costs now biggest single issue for US companies in Ireland

AmCham report shows firms still largely positive on Ireland as a location for their business

Ireland remains an important location for strategic investment by US multinationals, a new survey has found, and a large number expect their staff numbers to grow in the next year.

But the survey, which was carried out by the American Chamber of Commerce Ireland (AmCham), also highlighted a number of obstacles, including cost competitiveness, a shortage of specialist skills and general availability of talent.

The research, which questioned AmCham’s US multinational members, found an optimistic view of the future for businesses in Ireland, with almost half saying they expected to increase the number of staff at their Irish operations in the next 12 months, while the same number expect to maintain current employee numbers.

The vast majority said the view of Ireland from their corporate headquarters was positive, with 35 per cent citing a stable, pro-enterprise ecosystem as the key factors.

More than a third want the Government to put enhancing the road infrastructure at the top of their agenda, while 30 per cent said regional public transport should be made a priority. Just under a quarter said the Government should focus on capacity at airports and ports.

Cost competitiveness has now become the top issue for those who want to expand in Ireland, followed by housing. For those looking to fill vacancies in Ireland, 46 per cent said a shortage of specialist skills was a barrier, while 20 per cent said housing and 18 per cent cited general availability of talent.

AmCham chief executive Paul Sweetman said the findings were largely encouraging. “Over the past six decades, Ireland has fostered an exemplar community of business leaders and laser-focused policymakers to make Ireland a premier location for investment. Longsighted policies, the tremendous work of our state agencies – the IDA and Enterprise Ireland – the dogged efforts of the business community and, close collaboration with the US Embassy and successive Irish Governments, have all resulted in phenomenal growth,” he said.

‘We must continue to strengthen these efforts and adapt to support Ireland in achieving a prosperous future, driving continued growth and delivering for our communities and people. In a world where geopolitical shifts are becoming ever more prevalent, it is essential that Ireland maintains a pro-business, stable and competitive environment, all underpinned by being a leading advocate for open trade.”

More than 200,000 people in Ireland are employed by US multinationals.