OCO Global has today warned that US foreign direct investment (FDI) in Ireland is now at a "crucial juncture."
With Ireland’s election less than three weeks away and the World Economic Forum taking place in Davos this week, OCO Global say Ireland’s prosperous US foreign direct investment (FDI) strategy which has seen $446bn total investment to date will be presented with new challenges in 2020.
The Belfast and Dublin based company which advises Irish and UK Government organisations such as Enterprise Ireland, the IDA and the UK’s Department for International Trade, on trade and investment, has said that the combination of a volatile global trading environment, a slowdown in the US economy, the potential for rekindled US protectionism in election year and increased FDI competition will require Ireland to work harder to achieve its growth targets.
It is estimated that there are 155,000 people employed in US companies in Ireland. In 2019, multinationals in Ireland employed 245,000 with 63% of these coming from US FDI with companies including Facebook who recently expanded its staff in Ireland to 5,000 and medical device company Johnson and Johnson Vision investing a further €100m, creating an additional 100 jobs in its Limerick operations.
With IDA finalising its 2020 – 2024 growth strategy, OCO Global has said that this year will be more challenging for Ireland with its innovation ecosystem and regional development being crucial in achieving growth targets.
OCO has said that Ireland can significantly influence its FDI growth by demonstrably differentiating itself from the growing number of competing countries who are basing their FDI models on Ireland’s success by promoting tax incentives, upskilling labour and investing in targeted infrastructure which supports corporate growth.
Looking at the year ahead, Director for Trade Ireland at OCO Global, Kilian Cawley said, "The IDA has earmarked competition coming from Eastern Europe, but OCO Global is also aware of regions across Europe that are seeking to emulate the Irish model and gain ground on Ireland’s well established FDI principles. It is incumbent on the new government to focus its attention on Ireland’s credentials as a gateway into the EU and, depending on the Brexit process, the UK as an English-speaking country and importantly the sectoral hubs that have been successfully developed in pharma, tech and professional services and are so crucial to FDI."
He added, "Ireland must also maximise on the growing number of US companies that have their EU headquarters located here, which has supported an outstanding entrepreneurial network and eco system fostering new innovations, R&D activities and new business development through innovative start-ups. It is this maturing innovation hub which has seen a 10% increase in start-up funding from 2018 to 2019, that is particularly appealing for US and other global companies."
Source: www.businessworld.ie
