US-IRELAND BUSINESS 2023 - READ AMCHAM'S US-IRELAND BUSINESS 2023 REPORT ONLINE
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IRELAND
EUROPE
USA
US-Ireland Business 2023
US-Ireland
Read AmCham’s
Business 2023
US-Ireland Business 2023
Ireland – Strengthening Transatlantic Ties
Report online www.amchambusinessreport.com
@americanchamber | #USIRL23
Who We Are Our Members
About AmCham is the collective voice of US
companies in Ireland and the leading
Our members are the Irish operations
of all the major US companies in every
Contents
AmCham
international business organisation sector present here, Irish companies with
supporting the Transatlantic business operations in the US and organisations
page
relationship. We support our members with close linkages to US-Ireland trade and
through networking, leadership development investment. In many cases, the Ireland 4 Mark Redmond 36 Board of Directors
and representation to Government, Media operations represent global HQ or EMEA AmCham Chief Executive
and Stakeholders. hubs for certain aspects of their business.
38 Minister Simon Coveney
7 An Taoiseach Leo Varadkar Department of Enterprise,
Trade and Employment
8 Seamus Fives
Connecting AmCham President 2023 48 Minister Michael McGrath
Department of Finance
with Purpose 10 Key Statistics
Through our virtual/in person events, webinars, and 53 Leo Clancy
roundtable discussions our networks support deep 12 Economic Report Chief Executive of
collaboration and peer-to-peer learning in a trusted Enterprise Ireland
by Joseph Quinlan
environment. We use best in class technology
to ensure that our members can get a first-class
networking experience. 26 An Tánaiste Micheál Martin 41 Regional Chairs
Department of Foreign Affairs
and Department for Defence 54 Voices of the Global Irish
Advocacy 30 Mary Buckley 94 Our Team
Leadership with Purpose Interim Chief Executive of IDA
96 Key Dates 2023
Development AmCham membership gives 33 Minister Eamon Ryan
companies a powerful voice as part Department of Transport, Climate, 97 Our Programmes
with Purpose of what is recognised as one of the Environment and Communications
most influential business groups in
Our leadership development programmes the country. We are recognised as
support individual growth within our member a trusted, credible and authoritative
companies. All of the programmes are led by voice at the most senior level with Plus interviews and thought leadership from many more
industry experts from our member companies Government and decision makers in
and input from members determines topics, Ireland, Brussels and Washington DC. stakeholders and AmCham member companies.
agendas and guest speakers.
2 | US-Ireland Business 2023 Ireland – Strengthening Transatlantic Ties | 3
US MNCs in Ireland Leading
the Way in Sustainability,
Innovation, and Talent
Mark Redmond
Chief Executive
American Chamber of Commerce Ireland
There is some debate about the scale of this has reminded us that “work” – at its most why we are strong advocates for maintaining
Our 2023 US-Ireland Business Report confirms three key positions. Firstly, the two-way US-Ireland population movement. Now is the time to plan meaningful and fulfilling – is not a solitary and enhancing transatlantic air connectivity
trade and investment relationship stands at an all-time high – in both directions. Secondly, there what we want our country to look and feel like activity. Nor can we hope for our most – sustainably. Our leaders and future leaders
is consensus across the Irish political spectrum and the general public on the critical importance in 2060. What is our capacity? impactful learning to happen at “work” if the need to double down on being assured
“workplace” is the spare bedroom. Senior and and strategic in an uncertain world. At the
of inward investment to our economy and society. Thirdly, AmCham member companies, and Well, consider this – in 1841 the population experienced leaders in AmCham member outset of 2023, when I asked AmCham
their teams on both sides of the Atlantic, are central to solving the biggest challenges facing the of what is now the Irish Republic stood at companies recognise the importance of being Board members what skills/attributes
6.5m – Britain’s stood at 18.5m, this ratio present in the shared workplace with newer they will focus on for the year ahead, they
global community – with the Irish multinational operations playing a key role. makes sense because its landmass is roughly team members – that’s how innovation and highlighted: confidence; empathy; integrity;
three times greater. In 2021 Britain had a learning can best happen. communication/storytelling; relationship
In our Report you will read about how our future-proofing the grid’s capacity and AmCham appreciates the cross-political population of 67.5m – if famine and mass building; adaptability; relentless optimism
members have set hugely ambitious targets its cyber-resilience, implementing a clear, determination to address the shortage in emigration hadn’t decimated Ireland and the For our manufacturing members, the changes and positivity.
to reach net-zero status and the massive milestone-driven plan to harness the affordable homes in Ireland and the large- 1841 ratio was maintained, our population to the workplace are driven by smarter use of
investment – both financial and expertise massive renewable potential and seizing scale investment being made. We have long today would be roughly 24m instead of 5m. new technology delivering greater productivity, I think that is a great summary of what we
– they are making to ensure they meet their the opportunity Ireland has to be a global called for a complete overhaul of our planning safely and sustainably. Our members’ need in our “tool-kit” to meet the opportunities
responsibilities to tackle the climate crisis. centre of energy and sustainability research regime – our mantra is that we are not looking AmCham appreciates the cross- reputation for advanced manufacturing and challenges before us – some of which
AmCham members are leading the way in excellence. for certainty of outcome, but we expect political determination to address excellence has helped attract increasing I have raised in this piece. AmCham will be
investing in renewable energy and reducing certainty of timeline and process. This reform investment here in research and development. by our members’ side to give our full support
the shortage in affordable homes
carbon emissions from their operations and AmCham has always been clear that the is now happening – it needs to be swift, AmCham wants to see R&D investment – through our highly regarded leadership
supply chains. This investment comes at a future of inward investment will be as much comprehensive and evaluated in real-time in Ireland and the large-scale accelerate – we need to focus on growing the development programmes; our nationwide
time of uncertainty about energy security and about where people want to live as where with agile improvements where identified. investment being made. pool of world-class researchers, the calibre of networks and major events programme;
pricing. Ireland has built a reputation with the companies want to locate. Growing numbers our third-level graduates and the effectiveness our unparalleled member connectivity
global multinational community, including of people want to live in Ireland – some to What population size is Ireland planning of incentives like the R&D tax credit. programme; our extensive information
corporate headquarters in the US, of delivering have a great career and quality of life – others for? The consensus appears to be 6 million In the past, hundreds of thousands of people services and our key role as the respected
certainty in its policy and administration – to find respite from war and inequality. Our people by 2040. That might be conservative left Ireland to find work – now they are Significant change is happening at corporate voice of our members with decision makers.
a “no-surprises” brand. When it comes to members recognise the opportunity that flows – and what about by 2060? It is possible coming here in similar numbers to work here. headquarter level in the US – both in I am excited by our members’ ambition and
energy, geopolitical tensions can make this from diversity of thought and talent – their that the climate crisis will see significant But we are living in a time when the nature leadership and strategy. AmCham leaders grateful for their support for AmCham Ireland.
challenging. But Ireland needs a relentless teams are truly global – that is why they are so increases in migration to countries with less of “work” and the meaning of “work-place” are focused on the need to be “in the room”
focus on the areas within its control – brilliant at serving global markets from Ireland. extreme climate conditions – like Ireland. is in flux. The pandemic and its aftermath to enable their teams play their part. That is
4 | US-Ireland Business 2023 Ireland – Strengthening Transatlantic Ties | 5
An Taoiseach
Leo Varadkar TD
Tá an ceangal fadbhunaithe domhain atá idir Éire agus na Stáit Aontaithe chomh láidir anois
is a bhí riamh. Tá sé cruthaithe ag an gceangal sin, atá bunaithe ar nasc domhain ár sinsear, ar
luachanna roinnte agus ar dhúthracht do thimpeallacht dhomhanda a thacaíonn le trádáil agus
infheistíocht, go bhfuil sé seasmhach agus gur féidir leis an dá thír araon tairbhe a bhaint as in
amanna dúshlánacha dothuartha.
The longstanding and deep bonds between and investment relationship has been truly policy choices and investments, we will work
Ireland and the United States remain as central to this story. As we celebrate the 50th with FDI and indigenous enterprises on the
strong as ever. Based on a foundation of anniversary of our membership of the EU, green and digital transitions and ensure our
deep ancestral ties, shared values and a we reflect on the extraordinary benefits that future success is founded on sustainability,
commitment to a global environment that our embrace of international cooperation, innovation and productivity.
supports trade and investment, these bonds trade, and investment, with the US, with our
have proven both enduring and mutually European partners, and more broadly, has Competitiveness is not just about having a
beneficial in challenging and unpredictable brought to our society. pro-business policy environment, it’s also
times.[Translation] about providing the infrastructure expected in
As we look ahead, we are committed to advanced economies. I acknowledge Ireland
The bond between Ireland and the United ensuring Ireland remains an open and has shortcomings in these areas. In the
States is demonstrated in the extraordinary welcoming environment, in which to start, coming years, we will step up our investment
depth of our economic and trading grow, or invest in a business, and one from in housing, energy, water and public
relationship. Ireland is the gateway to Europe which businesses can succeed globally. We transport. We will not pull back on vital capital
for many US companies, with over 900 US will never take the flow of FDI into our country investment when we need it most.
companies in Ireland employing 209,000 for granted, not even after what was a record
people directly, and a further 167,000 year for inward investment. Ireland continues to take great pride in our
indirectly. At the same time Irish companies relationship with the US. I would like to thank
have achieved considerable success in the I believe the pace and fundamental nature the American Chamber of Commerce and
US, with over 650 Irish firms employing over of change now underway globally in multiple its members for all their efforts and the vital
100,000 people across all 50 states. dimensions – economic, technological, role they play in strengthening the ties that
geo-political and environmental – requires bind our two nations. Working in partnership
Ireland’s track record as a great place to us to refresh our approach to account for we will ensure Ireland remains a leading
do business has provided the confidence the new risks and indeed opportunities that location for both business and talent, while
companies need to invest and to create will arise. So, we have just published a new strengthening trade and investment, and
employment. Foreign investment has played White Paper on Enterprise. It reaffirms that building on our hard-won reputation as place
a leading role in the development of the Irish Foreign Direct Investment will remain a major for enterprise, innovation, and growth.
economy, and the two-way Ireland-US trading part of our economic model. Through our
Ireland – Strengthening Transatlantic Ties | 7
P R ES I D E N T’S PER SPECTI V E PR ESID EN T ’ S P ER SP ECT IVE
US-Ireland Business
Relationship Reaches Record Already we have members who are utilising
Corporate Power Purchase Agreements
(CPPAs) to increase the proportion of power
Levels of Investment generated for their operations from renewable
energy sources, who are producing their
own renewable energy on-site, and who are
Seamus Fives engaging in research and innovation projects
AmCham President for 2023, VP API Manufacturing Operations at Pfizer Pharmaceuticals in areas including water and waste reduction.
AmCham believes that the development The importance of apprenticeships, upskilling In advancing sustainability initiatives,
of centres of excellence to support the and lifelong learning will also play a key role AmCham believes it is essential that Ireland
intersection of research, academia and in future proofing our talent pipeline. Many increases its development of renewable
The US-Ireland business relationship is In a recent survey of our member economy in the EU and is home to 9 of the top
industry would advance progress in ensuring AmCham members are already offering energy sources, particularly focused on the
continuing to reach record levels of growth companies, 94 percent of 10 US technology companies, all ten of the
the competitive needs of industry are met apprenticeships, and supporting re-entry potential of offshore wind, wave, solar and
on both sides of the Atlantic despite ongoing world’s leading pharma companies and 14 of
respondents said they have a and ensure Ireland is competitive in attracting to the workforce through partnerships with green hydrogen, and urgently invests in the
challenges in the global economy. the world’s top 15 MedTech companies. As
positive view of Ireland as an inward investment in the RD&I sphere. universities both to develop new courses in on-going upgrading of the energy grid to
a result of the development and innovation
emerging fields and to offer practical on-site provide sufficient capacity levels to cater for
In 2022, there were 167 new investment investment location. taking place within US MNCs here, Ireland
SECONDLY experience to students. current and future power needs. It is also
announcements from US MNCs in Ireland, produces 4 out of every 5 medical stents
Talent attraction and skills essential that adequate public transport is
accounting for 69 percent of all new In the same survey, 61 percent of respondents saving and enhancing lives around the world,
However, while it is important that we provided in urban centres and that Ireland’s
multinational investments in the country. said they expect the number of employees in 1 out of every 2 hospital ventilators, 1 out of shortage have been consistently
continue to develop and grow talent at home, planning processes are streamlined so that
There are now 950 US companies in Ireland, the Irish operations of their organisation to every 3 sets of contact lenses used globally, ranked among the top concerns it is also important that we continue to attract the infrastructure required to meet Ireland’s
directly employing over 209,000 people and increase over the next 12 months, while 35 while seven out of every 10 brain tumor
for AmCham members when world class talent into the country. In this sustainability goals can be delivered in a
indirectly supporting an additional 167,000 percent said there will be no change. operations conducted globally use surgical
considering future investment context AmCham has recommended the timely manner.
jobs in the wider economy. In 2021 US technology created in Ireland.
rollout of a global #WhyIreland campaign,
companies also spent €31 billion in the Irish Throughout my 2023 Presidency, I will continue in Ireland.
focused on advertising Ireland, and its While there continues to be opportunities for
economy on capital expenditure, payroll and to highlight the factors that attract business However, AmCham believes that a continued AmCham understands that collaboration
regions, to international talent as a destination continued growth in the US-Ireland trade and
goods and services. and talent to Ireland as well as highlight a focus on further investing in Ireland’s between industry and academia is crucial in
of choice to live and work. investment relationship, there is no doubt
number of key priorities for AmCham members research capacity would ensure we attract ensuring we continue to develop word class
that Ireland’s pro-enterprise policy approach,
Meanwhile, Ireland remains the 9th largest to continue to invest and expand in Ireland. the best researchers, develop world-class talent. This is also essential in the on-going
THIRDLY implemented by consecutive governments,
source of FDI to the US. Last year there were capability in high-value niche areas, and mapping of skills needs when planning for the
We know that advancing the our membership of the EU, our talent pool
650 Irish companies with operations across FIRSTLY encourage innovation. growth and future development of industry.
and the continued messaging that inward
2,500 locations, up from 2,200 locations in AmCham understands that sustainability agenda is a priority
investment is a national priority have ensured
2021. Irish companies employ over 100,000 Currently, Ireland’s expenditure on Research, AmCham continues to advocate for the for both business and society.
research, development and that Ireland is an attractive location for inward
people across all 50 states. Irish exports Development and Innovation (RD&I) falls continued development of digital skills,
innovation are central to According to a recent survey of AmCham investment.
to the US were also up 14 percent last year below the EU average. AmCham has and life-long learning, to support the needs
members, 42 percent of respondents aim
compared with 2021. developing businesses and recommended a focus on increasing Ireland’s of an increasingly digitalised society and
to be carbon neutral by 2030 with this As the global economy faces into a period
maintaining high-value jobs. expenditure and, in that context, notes the workplace. AmCham has also advocated
rising to 64 percent by 2040. The use of of uncertainty, it is now more important than
The continued growth of US investment in ambition of the Department of Enterprise, on the importance of bolstering the focus
Ireland has gained a growing reputation as a innovative technologies will be critical ever that we take the opportunity to continue
Ireland, despite ongoing challenges in the Trade and Employment’s White Paper on on STEM topics in primary and secondary
global centre for innovation and development to achieving both these goals and the to grow our FDI sector and ensure Ireland
global economy is testament to Ireland’s Enterprise 2022-2030 to increase spending on education, to enhance the development
and Ireland’s investment in this sphere is Government’s wider goal of transitioning remains a competitive location for business
strength as a location of choice for inward RD&I to 2.5 percent of Gross National Income of key skills for the future, including
essential to attracting business and talent. to a carbon neutral economy by 2050. and talent to live and work.
investment. (GNI) by 2030. coding, mathematics, and the sciences.
Ireland is currently the fastest growing
8 | US-Ireland Business 2023 Ireland – Strengthening Transatlantic Ties | 9
KEY S T A T I S T I C S KEY STATI STI CS
US Investment Irish Investment
in Ireland in the US
€8.7bn
In 2021, Enterprise Ireland
client company exports to
on goods and the US were approx
services each year
US companies spend
€4.7bn
209,000
Exports to the region
€14.1bn (Americas) were up
people employed by
US companies in Ireland
on payroll each year
100,000 14%
€7.9bn
invested on capital
650
Irish companies with
people employed by Irish
companies across all 50 states
year on year
expenditure by US operations in the US
companies each year
950
US companies
Ireland is the 9th
largest source of US FDI
167,000
in Ireland
2,500
at a value of
jobs indirectly supported
in the wider economy locations across the US
$240bn
Preliminary figures from the IDA Figures from Enterprise Ireland
10 | US-Ireland Business 2023 Ireland – Strengthening Transatlantic Ties | 11
ECO N O M IC R EP O RT
Resiliency in The Face of Adversity:
Irish-US Linkages
The aftershocks from the seismic macro events of 2022—US
inflation at multi-decades highs, China’s struggle with Covid-19,
and a full-blown war in the heart of Europe—will weigh on the
global economy in 2023.
Indeed, high energy prices and tightening December (y-o-y) versus 10.1% in November.
financial conditions around the world, overlaid Energy price caps, lower commodity prices,
Joseph Quinlan
with the uncertainty of Europe’s largest land easing supply chain pressures and the
Wall Street Economist
and Fellow of Johns
war since World War II, could push the world cyclical effects of slower economic growth
Hopkins University economy into recession this year, a rare have all converged to ease pressures on
event of the post-war era. Even if the worst transatlantic inflationary expectations.
is avoided, global economic activity will be
at best tepid in 2023. And as an open and Price stability in Europe, however, remains
outward-looking nation, Ireland will not be challenging given the ongoing war in Ukraine
spared from the effects of a global downturn. and Europe’s overarching vulnerabilities to
global oil and natural gas prices. The good
Encouragingly, the impending growth news: warmer-than-expected weather, along
slowdown in both the US and Europe has with government price caps and behavioral
tempered future inflation expectations. shifts by industry and consumers, have helped
Headline inflation in the US, after reaching Europe avoid the worst-case scenario—a full
a peak of 9.1% in June, has rolled over and blown energy crisis that would have resulted
was running at a year-over-year rate of 6.5% in a deep economic recession.
in December 2022. Slowing demand and
the easing of supply chain constraints have The bad news: energy prices in the early
helped alleviate pricing pressures on goods, part of 2023 were still punishingly too high.
Economic Report
while service inflation is expected to peak in In addition, maintaining adequate energy
early 2023. Inflationary pressures in Europe supplies in the face of tight global inventories
have also peaked, with lower energy costs remains key in the face of rebuilding storage
helping to slow price increases to 9.2% in capacity ahead of the 2023-24 winter.
2023
12 | US-Ireland Business 2023 Ireland – Strengthening Transatlantic Ties | 13
ECO N O M IC R EP O RT
Why Ireland
Meanwhile, with inflation still elevated and far this year, although a transatlantic recession Suffice it to say that we are certainly living in We have said it many times before and we Second, Ireland’s human talent—the nation’s In general, given Corporate America’s
from the European Central Bank’s (ECB) target is not inevitable. The US consumer, as usual, “interesting times.” Change and churn are the will say it again: Ireland continues to punch young, educated labour force—remains a key constant search for talent (notably with an
of 2%, interest rates in Europe are expected to remains a primary engine of growth in the hallmarks of our era. To wit, in just the past above its weight when it comes to attracting attraction, notably among high-productivity unemployment rate in the US at just 3.5%),
remain elevated this year, dragging on overall United States, supported by strong nominal three years, the global economy has been the capital of some of the world’s largest sectors and innovation industries like Ireland’s young, well-educated, English-
economic activity. Ditto for the United States, wage growth and a tight labor market that rocked by a global pandemic, a multi-decade and most innovative companies. According pharmaceuticals and information technology. speaking talent pool remains highly valued by
where current levels of inflation (6.5%) remain favors labor over capital. In Europe, the spike in inflation, and an unthinkable ground to figures from the United Nations, Ireland According to the OECD, Ireland has one of the US firms. To this point, an estimated 57,000
well above the Fed’s target of 2%. continent’s energy crunch has not been as bad war in the heart of Europe. But within this remains a top destination for foreign capital most educated workforces in the world, with Irish workers were employed in manufacturing
as expected, boosting business and consumer fluid environment, one constant remains: the this decade. In 2020, for instance, Ireland over 50% of workers between the age 25-34 activities of US affiliates in 2020, the last year
The risk for 2023 is that central banks on both sentiment as 2023 begins. According to bonds that bind Ireland and the United States ranked among the top ten destinations for having a third level education qualification, of available data, with another 90,000 workers
sides of the pond erron the side of keeping the latest projections from the International together remain robust and resilient, and are foreign direct investment, with the nation almost 10% higher than the OECD average. employed in service activities. In the end,
policies too tight for too long as they remain Monetary Fund, both the US and Europe are only expected to become even denser and ranked fourth overall, attracting some 8.4% America’s extended workforce in Ireland is
focused on pulling headline inflation back to expected to achieve positive growth in 2023, dynamic in the years ahead. (Figure 1) of all global inflows for the year. In 2021, among the largest in all of Europe. (Figure 2)
target. Against this backdrop, both the US and 1% and 0.5%, respectively. That is down from however, inflows dropped sharply along with
Europe are expected to flirt with recessions the levels of 2021 and 2022. the depressing effects of the global pandemic.
In the case of Ireland, it’s not one factor but Figure 2
Figure 1 many that continue to draw FDI to its shores.
Manufacturing Employment of US Foreign Affiliates** in Ireland
The US consumer, as US Direct Position in Ireland on a Historical-Cost Basis One, US multinationals prefer to invest in
markets and economies that are healthy
usual, remains a primary and growing, and on this basis Ireland easily
(Thousands of Employees)
70
engine of growth in the $ Billions stands out from the rest of Europe and many
emerging markets for that matter. Indeed, 65
United States, supported 600
over 2021-22, Ireland emerged as one of the
60
by strong nominal wage fastest growing economies in the world, with
500 Ireland’s economy expanding 13.4% in 2021
growth and a tight labor and by another 10.1% last year, according to
55
market that favors labor the latest figures/forecasts from the OECD. 50
400
Growth is set to slow this year—to 3.8%
over capital. according to the OECD—but that is well above 45
300 the global average and well above expected
40
growth in the EU (less than 1%).
200 35
30
100
25
0 20
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21*
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
*Author’s estimates. **Majority-owned nonbank affiliates (2005-2008). Majority-owned bank and nonbank affiliates 2009-2021.
Source: Bureau of Economic Analysis. Data as of 2021. Source: Bureau of Economic Analysis.
14 | US-Ireland Business 2023 Ireland – Strengthening Transatlantic Ties | 15
ECO N O M IC R EP O RT
Figure 3
Another attraction of doing business in Ireland wealthiest and largest economic bloc in the around intellectual property rights, technology That said, and looking forward, it is critical
lies with pro-trade and investment government world, even excluding the United Kingdom. transfers, and indigenous protection of that Ireland continue to develop its human Most Favored Nation
policies, with Ireland among the most national champions. The more the US and capital and foster an innovative economy U.S. Cumulative FDI Outflows: 2008 - 2021
successful nations in the world in encouraging Ireland serves as a key access hub for China spar over trade and investment, the that encourages cutting-edge R&D. The (Billions of $)
the development of high-value-added clusters a market that is on par with the size of more critical transatlantic ties become. nation has performed well but more global 450
of enterprise in advanced manufacturing and America’s economy and well in excess of R&D is emanating from Asia, namely China.
global business services in industries like data China’s total output. That said, it is little In the end, Ireland remains open to business In other words, there are no boundaries to 400
electronics, computer software, medical and wonder that based on 2020 data (the most and continues to be one of the most attractive innovation thanks to the internet and failing
350
healthcare technologies and finance. These recent), Europe accounted for 64% of total US destinations in the world for US firms whose global communication costs. Ireland’s
sectors are at the cutting edge of growth and foreign assets of majority-owned affiliates; nature and outlook will always be global. competitiveness for the availability of talent 300
innovation, with leading firms increasingly 48.3% of total foreign affiliate sales; roughly The top investors in Ireland are the largest remains central to maintaining an edge
dependent on Ireland’s business environment 53% of affiliate R&D expenditures; 49% of total and most innovative companies in the as an attractive location for investment. A 250
to drive growth. foreign output; and 34% of affiliate global world. Many have survived and navigated credible talent development plan, therefore,
employment. No region of the world is as world wars, depressions, various oil shocks, must remain a top priority for Ireland’s policy 200
Other critical variables that underpin the important to Corporate America than Europe, numerous US administrations, and other makers. (Figure 3)
150
investment attractiveness of Ireland include and Ireland’s strategic place within the region. “shocks” over the past several decades.
a strong tradition of political stability; ease of Despite unexpected and market-jarring 100
doing business and global competitiveness; Trade and investment tensions between events, the long-term focus of most US firms
competitive tax regime and an attractive the US and the European Union remain sore has not changed. Firms continue to scan the 50
research and development ecosystem of spot, although both parties are expected to world for the best places to serve customers,
proven innovation capacity. All of these find common ground this year, helping to access talent, find innovation and secure a 0
Netherlands Ireland Singapore China Belgium Israel
variables help to explain and support “Why strengthen, not weaken, transatlantic trade return on investment, with Ireland punching
Ireland” when it comes US foreign direct ties. The same cannot be said of US-Sino trade well above its weight. Other industries include wholesale trade, finance and insurance, professional services, mining, and utilities.
investment. Another key allure: Ireland’s relations over the long-term given the deep- Source: Bureau of Economic Analysis. Data as of January 2023.
membership in the European Union—still the rooted US opposition to China’s trade practices
In the end, Ireland remains open to
business and continues to be one of
the most attractive destinations in
the world for US firms whose nature
and outlook will always be global.
16 | US-Ireland Business 2023 Ireland – Strengthening Transatlantic Ties | 17
ECO N O M IC R EP O RT
“Reshoring” and Rethinking how US Firms Transatlantic Ties have never been
compete in the Global Economy more important as today
The clarion call to “bring it home” or for time” has been replaced by “by-just-case,” with is reducing the amount of available labor US multinationals have long considered A large and relatively skilled labour pool was followed by another healthy increase in
American firms to reshore production more multinationals creating redundancies and immigration remains constrained by Europe as an extension of their home market, is another transatlantic similarity, as is a 2022 (est. $90 billion). Irish affiliates in the
to the US is growing louder and louder, and safeguards in their supply chains. The political forces. At the end of 2022, the US and for good reasons. Like the US, the predictable and transparent rule of law, US, meanwhile, also posted record levels
underpinned by bipartisan support from both rise in economic nationalism has contributed unemployment rate was hover at a record low European Union (plus the United Kingdom) respect for intellectual property rights, of income in 2021 ($11.1 billion) and saw
Democrats and Republicans. The goals are to to this rethink as well as more and more US (3.5%), while more than 10 million jobs were is large and wealthy, and home to a highly and liberal and open trade and investment income rise by another estimated 4% last year,
shorten supply chains and boost America’s firms find themselves caught between political unfilled in the United States. This has created skilled and efficient labour force. The EU regimes. No two economic blocs in the world to a record $12 billion.
economic self-sufficiency in the face of rising forces to build/invest locally in the US versus a mad scramble for global talent. Not helping (excluding the UK) accounted for roughly 18% have as many qualities and similarities as the
competition from China and other rising the competitive reality of leveraging resources matters, some 10,000 baby boomers in the of world GDP in 2022, not far from America’s US and EU. And with the world increasingly In the end, the deep roots of the Irish-US
economic powers. Industrial policies have all over the world. How firms navigate US reach retirement age every day, with many 25% share. In terms of consumption, the split between the West and the Global South relationship have helped both parties weather
made a comeback in the US, with the Biden these crosscurrents will be determine their of these workers opting out of the labor force. US and European consumers (combined) (led by China, and including Iran and Russia), the storms of the past few years. This
Administration set to dole out some $465 competitiveness and profitable. The US labor force participation rate remains account for half of world consumption, a many multinationals are refortifying their unique relationship has helped bolster the
billion in subsidies for investments in green stuck at 62-63%, below its pre-pandemic level. fact that underscores the attractiveness of capital and capabilities in markets that are operations and profits of firms, with American
energy, electric cars, and semiconductors over Despite a world in constant change, what Against this backdrop, and contrary to the the transatlantic economy and reinforces a transparent and attune to the general rules of foreign affiliates in Europe increasingly
the next few years. has not changed for US firms is this: firms clarion calls to reshore, rarely have US firms point that despite the rise of China, global global trade and commerce. Not surprisingly indistinguishable from local European firms,
are in constant need of talent — or skilled been more dependent on external resources, consumption pivots on the US and EU. Indeed, then, US firms have comfortably and profitably and European firms in the US equally as
For multinationals, in addition to the rising and unskilled labor in a world where labor Ireland’s included. (Figure 4) Chinese consumption has lagged with the operated in Europe for decades. And ditto for indistinguishable from local American firms.
calls for more “reshoring,” the mantra of “just in market growth has peaked, demographics zero-Covid policies of the past few years, European firms in the US. Given the fragile state of the global economy,
leaving it up to the transatlantic consumer to Irish-US ties will be tested again this year but
Figure 4 power global consumption. And speaking of profits, US affiliates in we expect bi-lateral ties to bend not break,
Ireland posted record levels of foreign and remain among the strongest in the world.
The rise in economic nationalism US Outward FDI Abroad: By Country for Capital Outflows
affiliate income in 2021 ($80 billion), which (Figure 5)
has contributed to this rethink Millions of dollars; (-) inflows; not seasonally adjusted
as well as more and more US
2020 - 3Q2022 % of world Figure 5
firms find themselves caught
All countries, all industries 828,383 Ireland US. Global Linkages 2021
between political forces to build/
invest locally in the US versus the United Kingdom 172,236 20.8%
Ireland 127,380 15.4% US in Ireland ($Bn) Ireland in US ($Bn)
competitive reality of leveraging
resources all over the world. Netherlands 82,695 10.0%
Foreign Direct Investment* 556.6 269.4
Singapore 65,092 7.9%
Canada 63,238 7.6% Total Assets of Affiliates** 2,067.5 503.1
Germany 31,648 3.8%
Foreign Affiliate Sales** 499.3 152.8
Switzerland 27,818 3.4%
Mexico 24,724 3.0% Value Added of Affiliates** 116.7 60.9
China 18,283 2.2% *Measured on a historic-cost basis. **Author estimates.
Data are for majority-owned bank and nonbank affiliates.
Japan 11,322 1.4% Source: Bureau of Economic Analysis.
Source: Bureau of Economic Analysis.
18 | US-Ireland Business 2023 Ireland – Strengthening Transatlantic Ties | 19ECO N O M IC R EP O RT
No country in the
world attracts more The Way Forward
FDI than the United
States, with Irish firms Given the tectonic shifts of the past few technology leaders. In the end, Irish-US bonds
years, it’s not an understatement to proclaim are set to become stronger, not weaker, as
significant players in
that the liberal economic order of the past this decade progresses.
the United States. seventy-five years is being tested. The entire
concept of globalisation is under threat as In part this reflects the following: One, US
policy makers scramble to pacify and address multinationals remain among the most
citizens disengaged and discouraged by their globally-minded entities in the world; they
economic prospects. This cannot be expected go where there are opportunities for growth.
to recede anytime soon given the geopolitical Two, even minus the United Kingdom, the
realities of our times. There is more talk European Union will remain one of the most
of de-globalisation (or localisation) than attractive markets in the world for US firms.
globalisation. The region’s attractions are often underrated
...the transatlantic but the EU remains large, wealthy, and richly
That said, the transatlantic economy remains endowed with human capital, respect for
economy remains the the rule of law, political stability, and other
the largest and wealthiest in the world and
largest and wealthiest a source of prosperity and development business-friendly policies. And three, at the
A Two-Way Street in the world and a for its citizens. And within this framework, heart of US corporate interests in Europe will
Irish-US linkages remain solid. In a world of be Ireland. Given multiple attributes that make
No country in the world attracts more FDI than Figure 6 source of prosperity unrelenting change and frequent shocks, one the nation among the most attractive in the
the United States, with Irish firms significant US Affiliate Income Earned Abroad: By Country constant is the depth and durability of Irish- world for foreign direct investment, Ireland is
players in the United States. To this point,
and development for its US commercial relations. Both parties are well placed to remain the critical link not only
Corporate Ireland’s total assets in the US Millions of dollars; not seasonally adjusted citizens. And within this deeply embedded in each other’s economy, between the United States and Europe but
—$490 billion in 2020—was greater than the creating mutual benefits for all stakeholders also the United States and the world.
total assets of Spain ($413 billion), Belgium
2020 -3Q2022 % of world framework, Irish-US on both sides of the Atlantic. Even with the
($179 billion) and China for that matter All countries, all industries 1,409,644 linkages remain solid. aftershocks of this decade, the partnership As we set to enter a new decade, Ireland is
($268 billion). Irish affiliates in the US Netherlands 213,071 15.1% not only endures but continues to thrive. well positioned to serve as a transatlantic
generated some $146 billion in sales in In a world of unrelenting hub linking the world’s largest economies.
Ireland 207,842 14.7%
2020, more than Italy ($38 billion) and
United Kingdom 128,316 9.1%
change and frequent Bi-lateral trade and investment have Over the past few decades, the nation has
Sweden ($73 billion). These same affiliates rebounded much faster than expected. been transformed into a full-fledged global
contributed to nearly $4.6 billion in R&D Singapore 93,507 6.6% shocks, one constant is The ties that bind continue to thicken and partner of Corporate America—a critical link
expenditures. All of this bestows a host of Canada 76,889 5.5% the depth and durability deepen—driving economic growth, earnings, in the global success of some of the world’s
benefits to the US and US workers in terms jobs, incomes and a host of other benefits. most dynamic and innovative firms. Irish-US
Switzerland 43,807 3.1% of Irish-US commercial
of investment and employment, and is a The digitalization of the global economy is linkages are among the deepest in the world,
Japan 37,000 2.6% a depth that will survive our times of tumult
reminder that Irish-US bi-lateral commercial relations. accelerating, portending even deep integration
relations are a two-way street. (Figure 6) Hong Kong 30,286 2.1% between Ireland’s tech savvy economy and US and uncertainty.
China 30,158 2.1%
Australia 26,702 1.9%
Source: Bureau of Economic Analysis.
20 | US-Ireland Business 2023 Ireland – Strengthening Transatlantic Ties | 21We Must all be Accountable,
Active Drivers of Gender Equality
Fernando In a study from the Harvard Business ‘On an internal basis, I am honoured to
Vicario Review1, findings show that after a woman be a member of our Global Diversity and
joins the management team, firms become Inclusion Council, promoting goal setting,
Bank of America, CEO
increasingly open to change and less open to driving initiatives both locally and across the
of America Europe DAC
risk. Meaning when women join the C-suite, region and embedding diversity, equality and
and Country Executive
they don’t just bring new perspectives — they inclusion in our performance management
for Ireland
fundamentally shift how the C-suite thinks, process. Every employee has a clearly defined
ultimately enabling these firms to consider a diversity and inclusion goal in their annual
At the start of 2020, no one could have wider variety of strategies and opportunities performance review as we believe that all
imagined the pandemic or envisaged its for creating and unlocking meaningful value. employees play a significant role in our
far-reaching impact. Three years on and the diversity and inclusion strategy, whether it’s
global economy is still in recovery, society There are a number of ways in which our leaders in driving diversity representation
continues to rebuild and recalibrate. Yet one businesses can support and empower progress or our employee networks who
significant issue remains to be truly tackled: women to access and remain in employment. play a significant role in our inclusive
gender inequality. Including, fostering progressive policies, environment. We have 6 employee networks
flexible working, elder and child care support, in Dublin, with over 1500 memberships.’
According to insight from the United Nations offering benefits packages that employees
2022, the pandemic significantly impacted can tailor to their own needs, establishing The organisational benefits of women being
opportunities and financial security for peer-to-peer support programmes, carving properly represented in the workforce are
women. Noting that at the current rate, it will out clear time to facilitate learning and undeniable. Businesses seeking to thrive, and
take 257 years to close the global gender development and investing in early- to mid- truly leave a lasting legacy, will recognise that
pay gap. Furthermore, figures from a recent career professionals. Crucially, any such facilitating this is also a moral imperative.
McKinsey report estimate COVID-19’s impact initiatives must be underpinned by embedding Collaboration, a focused strategy and real
on women could shrink the global economy by diversity into the organisation’s core values, accountability will be key to making the
a trillion dollars by 2030. Conversely, they note goal-setting and regularly reviewing data, ambition a reality.
that taking steps to confront the issue could seeking feedback and adapting the approach
add $13 trillion to global GDP by 2030. where necessary, tracking progress, and
leading by example from the top.
I see first-hand through our work in Ireland and
globally that having a truly diverse workforce In 2022, the Irish Government in partnership
benefits business. The value that we deliver with Financial Services Ireland, part of
is strengthened when broad perspectives – in Ibec launched Ireland’s inaugural Women
thought, style, orientation, gender identity in Finance Charter, a pledge for gender
and expression, culture, race, ethnicity, ability balance and inclusivity at all levels across
and age – are brought together to meet the financial services sector in Ireland. Bank
the varying needs of our customers, clients of America was one of the first firms to
and community. In a deeply competitive sign up to the charter and continues to play Sean Fleming, Minister of State of the Department of
market, having proven credentials in diversity an active partnership role, measuring and Finance, Cecilia Ronan, CEO of Citibank Europe, and
and inclusion sets employers apart. communicating progress, accountability and Fernando Vicario, CEO Bank of America Europe DAC
tangible action. and Country Executive for Ireland, leading the Women
in Finance Charter in Ireland.
1
Harvard Business Review, April 06, 2021.
Research: Adding Women to the C-Suite Changes How Companies Think by Corinne Post, Boris Lokshin, and Christophe Boone.
Ireland – Strengthening Transatlantic Ties | 23Digital Transformation –
People and Process
Digital transformation is foundational for business success, however, it brings opportunities
and challenges. For many companies, planning phased outcomes offers the most practical,
cost effective solution.
What it needs to deliver of the specific business landscape to 3. Logistics and supply chain - The game
help navigate the complexities of digital changer for supply chains will be AI
Digital technologies, coupled with lean
transformation. Enhanced data analytics technology. Primarily, it is supporting
business processes, must support business
provides the critical business intelligence that the move to real time inventory control
scaling and innovation, maintain flexibility
enables forecasting and decision-making. through predictive analytics. The outcome
and security without incurring significant
Underpinning this key business intelligence is is just in time ordering systems throughout
infrastructure costs. To do this requires a
identifying a core set of meaningful KPIs. For the whole supply chain. Secondly, real
combination of development of in-house
example, a percentage increase in revenue, a time data analytics are helping to reduce
skills as well as seeking third party advice.
reduction in overhead /operating costs or a supply chain glitches, improve financial
It needs investment in building robust ways
number of new product or service lines. management and future planning.
of working before digitisation. Above all,
strengthening cybersecurity is a priority and
Ireland is a world centre of excellence in high-
allows companies to grow securely. Having a Government support
tech manufacturing facilities – including life
vision and time framed multi-year and phased
sciences, data centre and food sectors. Some Governments play a key role in advancing
implementation is vital.
core focus areas are emerging: digital transformation; the Irish Government’s
national digital strategy is Harnessing Digital
People first 1. Lean processes - Lean principles have long – The Digital Ireland Framework (Feb 2022).
Good leaders understand the role of digital as played an essential role in manufacturing Two key areas in the Framework are Artificial
an enabler, balancing three competing pillars - and project delivery to drive efficiencies and Intelligence (AI) and Cybersecurity. Building on
people, processes, and technology. Identifying lower costs. Now the combined power of the Framework, the Government’s Grow Digital
how digitalisation will impact people and lean processes and digital technologies or Fund (€85m) was launched in June 2022.
their current/future ways of working, will ‘digitally enabled lean’, are transforming the
deliver digital solutions that enable and lock way projects and products are designed,
Declan Leonard
in sustainable improvements. Delivered managed and delivered. Digital twins will
Group Head of Digital Project Delivery
successfully, digital technologies encourage provide the opportunity to model, optimise,
and Digital Transformation, PM Group
collaboration and improve communication, test and predict processes improvements
increase agility, and support for an before investment.
environment of employee excellence.
2. Smart Manufacturing - Industry 4.0 is
a vast area but implementation must
Trusted expert advisers
be underpinned by the requirement to
Companies are looking to trusted advisers with organise, manage and integrate data
the ability to develop digital roadmaps and using appropriate technologies. Already,
solutions that support business outcomes. big data analytics, cybersecurity, robotics,
Advisers need to have a deep understanding augmented and virtual reality are emerging
and offering real business value.
Ireland – Strengthening Transatlantic Ties | 25An Tánaiste
Micheál Martin TD
Department of Foreign Affairs and Department for Defence
This year, 2023, we mark the fiftieth anniversary of Ireland joining what was then the European
Economic Community and today the European Union. Over those fifty years Ireland has been
transformed, economically and socially: this year, through the Government’s EU 50 programme,
we will reflect on and celebrate our EU membership.
There’s a lot more to Irish life than the
100,000 welcomes
A milestone in that journey was the This enhanced presence on the West Coast Agreement, an Agreement made in Belfast
establishment of the EU single market in will support the implementation of the but in many ways forged in America. The
1992. That accelerated Ireland’s progress to Government’s new Trade and Investment departure of the UK from the EU has been a
becoming a dynamic, productive and globally Strategy 2022-2026: Value for Ireland Values reminder of the role of shared EU membership
connected modern country, one which for the World. This Strategy will ensure in underpinning North South cooperation.
provides international companies – particularly sustainable growth and enable further
members of this Chamber – a transatlantic diversification of Ireland’s export markets, with I am hopeful that challenges regarding the
But don’t take our word – just ask any of the 100,000+ who help
bridge to a continental-sized market. a new cross-government, cross-agency body, operation of the Protocol on Ireland/Northern
the Trade and Investment Council, established Ireland will soon be resolved and our attention
drive American business in Ireland. That’s how many people we
As I reflect on the past fifty years, I often to ensure delivery of its seven priority actions. can return to embedding peace through look after, as the partner of choice for US companies in Ireland.
think of the beautiful symmetry of Ireland’s enhanced prosperity. The recent appointment of
EU membership driving a deeper and even The great American diplomat George Kennan Joe Kennedy III as US Special Envoy to Northern In fact, 19 of the 20 biggest American companies in Ireland have
more steadfast economic relationship is one of the architects of post-war Europe, Ireland for Economic Affairs is particularly welcomed Irish Life into their businesses, leading to mutually
between Ireland and the United States, supporting European integration as a driver welcome in this regard, and I look forward to rewarding and often lifelong relationships.
complementing those historical and familial of peace, saying the US wanted ‘Europeans working closely with him in his new role.
ties that bind us across the Atlantic. American to think like Europeans’. Following Russia’s
companies invest in Ireland, creating jobs, unprovoked and unjustifiable invasion of This year, too, we will mark 60 years since the
We’re proud to serve those businesses with Ireland’s leading
and Irish companies are investing in the US, Ukraine, Kennan’s insight was reflected in first visit of an American President to Ireland, range of employee benefit solutions, including our multi
contributing to employment there in almost Ireland’s strong advocacy for Ukraine being John Fitzgerald Kennedy – who was, of course, award-winning pension & asset management using responsible
identical numbers – and there is so much granted EU candidate country status in 2022: the great uncle of Joe Kennedy III. As this year strategies that don’t cost the earth, and our innovative health &
more we can each achieve into the future a more European, free and democratic Ukraine we work to further deepen the links between financial wellbeing solutions. Working closely together, we help
building on firm foundations. is the best guarantee of its sovereignty, Ireland and the US, including and in particular your people to have better lives today and build better futures.
underpinned by full membership of the the economic ties that this Chamber does so
A welcome symbol of the role the EU can European single market. much to foster, it is timely to recollect President
play in deepening the Ireland – US economic Kennedy’s observation during his visit here. He
A better life with Irish Life.
relationship is the co-location since 2022 of In addition to driving prosperity, Ireland’s noted that Ireland had excellent relations with Search irishlife.ie or
EU’s new West Coast Delegation Office within
the Ireland House Consulate-General of Ireland
membership of the EU also contributed to the
achievement of lasting peace on this island,
the worlds old and new, ‘the confidence of both’
and was ‘progressing in the context of Europe.’
call us on 01 704 2000
in San Francisco. There we work side by side a peace that has endured for the twenty-five In 2023 we recommit ourselves to ensuring
to strengthen transatlantic cooperation, with a years since Good Friday 1998. This year, I that such progress will continue.
strong focus on technology. look forward to marking the Good Friday
Irish Life Assurance plc (trading as ''Irish Life'') is regulated by the Central Bank of Ireland.
26 | US-Ireland Business 2023 Irish Life Health dac is regulated by the Central Bank of Ireland. Irish Life Investment Managers Limited is regulated by the Central Bank of Ireland.Specialists in Dental
and Vision Benefits
The Competitive Edge to
Digitalising Supply Chain
Dental & Vision benefits
Global supply chains have traditionally operated silently and unseen by consumers. The empty
shelves and price increases from recent crises and disruptions mean supply chains now have
have a positive impact
prominence in consumer minds like never before. Financial and Euro crises, Brexit, Covid-19,
the Suez Canal blockage, global freight logjam, war in Ukraine, energy shortages and severe
on your employee’s
weather are all sand in the gears of global supply chains, slowing down and in worst cases
halting supply entirely.
overall health.
Resilience, enabled by digital capability, is the suppliers all the way through our operations We are deepening our partnerships with
Attract and retain key talent for your
new supply chain competitive advantage. This and onwards to our hundreds of customers both suppliers and customers. Greater company by offering these benefits and
is the ability to proactively sense adversity, around the world. Business continuity read- collaboration via strengthened Sales &
agility to adapt to shocks and disruptions iness is a key capability ensuring we contin- Operations Planning processes, extended proving your commitment to the health
and responsiveness to protect innovation uously assess and review our contingency forecast sharing and enhanced demand of your employees.
and growth. Digital capability within supply options to make, move and sell beverage signal quality are key unlocks. Underpinning
chains has to date lagged functions like concentrate. We are investing in digitalisation, all of this is our unprecedented investment
manufacturing. Factoring in the turbulence leveraging data and analytics to enhance end in our supply chain team, their continuous
within which supply chains now operate on to end visibility via control tower capability, development and wellbeing. Our greatest
a daily basis, digitalisation is increasingly a dashboards and leading metrics. We use competitive advantage is our team of talented
key priority to enable supply chains shift from artificial-intelligence enabled ocean shipment supply chain professionals, acting as owners
reactive fire-fighting to adapting to the new tracking to give our teams real-time visibility to ensure we continue to survive and thrive in
operating reality. of shipments and predicted arrival times for this challenging operating environment.
both inbound raw materials and outbound
Across the PepsiCo global supply chain finished goods to protect supply, enhance
Pankaj Agarwal
network, we use proactive risk management service and mitigate both cost and risk.
Supply Chain Vice President, PepsiCo Ireland
to assess vulnerabilities from suppliers to our
Resilience, enabled by digital
capability, is the new supply DENTAL VISION WELLNESS
chain competitive advantage.
CONTACT OUR TEAM: www.decare.ie/corporate | corporate@decaredental.eu
28 | US-Ireland Business 2023
DeCare Dental Insurance Ireland DAC trading as DeCare, DeCare Dental & DeCare Vision is regulated by the Central Bank of Ireland.You can also read
