IDA Ireland reports steady investment growth in first half of 2023. But housing and infrastructure are key to maintaining momentum.
In the first half of 2023 some 139 investments were won by IDA Ireland that have the potential to generate 12,072 jobs.
The majority of these (67) projects were in regional locations while 52 were new name or first-time investments.
“Progressing with plans to improve the carrying capacity of the economy will be vitally important to enable Ireland to maintain existing levels of investment and to fully realise opportunities in the years ahead”
Several strategic investments approved and announced in the first half of the year involve large job numbers and significant capital investments.
When the going gets tough
IDA Ireland CEO Michael Lohan said the investments were landed against a backdrop of considerable geo-political uncertainty, not to mention inflationary pressures, supply chain challenges, climate change, energy issues and the war in Ukraine.
The results show the endurance and strength of the FDI sector with 139 investments approved so far this year with associated employment figures remaining strong, at over 12,000 jobs approved.
“Ireland is an established top tier investment location for multinationals who choose us because of our consistent, stable, pro-business landscape, our high level of education, our ability to attract and retain talent, and the flexibility and agility of our skilled workforce. Central to Ireland’s continued success will be embracing transformation to enable our economy, our enterprise base, and our people to thrive in a world where companies who do not progress on the paths of digitalisation and decarbonisation will be left behind.
“In this context, the ambition of the Government’s White Paper on Enterprise in setting a vision for enterprise policy to 2030 is welcome. IDA Ireland is actively engaged with the Department of Enterprise, Trade and Employment (DETE) on the White Paper, the full implementation of which will enhance Ireland’s competitiveness in a decarbonised and digitalised global economy.”
Lohan said that exports by multinationals grew to €315.5bn, approximately 70% of Ireland total national exports in 2021.
He said sectors dominated by IDA Ireland client companies account for an estimated 70% of corporation tax receipts and also make a significant contribution to income tax receipts.
To support this, Lohan said housing and infrastructure will be key. “Progressing with plans to improve the carrying capacity of the economy will be vitally important to enable Ireland to maintain existing levels of investment and to fully realise opportunities in the years ahead. IDA Ireland has frequently highlighted the need to efficiently deliver on key objectives including increasing the supply of new housing, making the planning system clearer and more consistent, and progressing key infrastructure projects under the National Development Plan. The transformative nature of policy, geopolitical and technological developments over the past 12 months also place an added emphasis on the need to fast-track the roll-out of renewable energy, invest in the digital skills of our people, promote RD&I, and ensure we have a competitive green and digital incentive offering.”
All in all, Lohan said Ireland’s value proposition as an investment location is a compelling one.
“As we seek to lay the foundations for continued growth and transformation in the FDI base in the years ahead, our success will depend on progress towards enhancing the carrying capacity of the economy in the immediate and medium-term. The key areas requiring attention remain planning, housing, energy, water and wider infrastructure. Policies that support the continued availability of talent are also critical. Managing costs in the current inflationary environment and executing on planned capital projects will be challenging, but important for Ireland’s continued competitiveness.”
Minister for Enterprise, Trade and Employment Simon Coveney, TD, said Ireland is maintaining its record performance seen in 2022.
“These results are also commendable given ongoing international turmoil caused by Russia’s illegal invasion of Ukraine. While there are some other economic headwinds ahead, including persistently high inflation, Ireland continues to win international investment due to our highly educated and talented workforce and because of our stable pro-business environment.
“We’ve worked hard to create a welcoming environment for FDI in all parts of the country and the strong spread of jobs and investment in today’s results is in keeping with government policy, with 67 (48%) of the 139 investments outside of Dublin. While Dublin continues to be the engine of our economic growth, our aim is for well paid, long-term sustainable jobs, to be available in every region in Ireland. That is our objective and I’m glad to see that largely reflected in today’s results.”
Main image at top: IDA Ireland CEO Michael Lohan