Ireland

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Dublin city lock at sunset

Ireland is attractive to US companies seeking to establish or extend their European operations, allowing them to maximise profits and conduct business with minimal difficulty, explains the American Chamber of Commerce in Ireland. Since the 1980s, successive Irish governments have actively promoted Ireland as a good place to do business and this has created vibrant and sustained economic growth.

US investment is the largest source of inward investment in Ireland, and the biggest exporting sector in the country. US Department of Commerce figures on US investment abroad show that US companies in Ireland achieve the highest rate of return in Europe on their investment. Today, US investment in Ireland exceeds $73 billion and accounts for direct employment of 90,000 people. In addition, it is estimated that a further 225,000 jobs in Irish industry are directly supported by the 620+ US companies based there. The American Chamber of Commerce works to promote a business environment that is attractive to US companies located in Ireland by representing their interests at a government level, in the media and by providing a forum through which ideas and information can be shared.

Key sectors of activity include pharmaceuticals and biotechnology, medical technologies, software and the broad arena of information and communications technology (ICT,) as well as shared services hubs, international financial services and the cutting-edge digital media technologies.

Research leaders

In the bio-pharmaceutical and computer sectors, US firms operate some of the world’s most advanced manufacturing and research facilities in Ireland. The majority of ICT and pharmaceutical/ medical technologies investments in Ireland originate from US companies. Ireland is the premier location in Europe for pharmaceutical and medical technology companies, attracting two thirds of all such FDI into Europe in these sectors. Fourteen out of the top 15 pharmaceutical companies have plants in Ireland, including Wyeth, Pfizer, GlaxoSmithKlein and Schering Plough.

Wyeth, for example, recently opened the world’s largest integrated BioPharma Campus near Dublin. Wyeth’s Grange Castle Facility employs over 1,300 people, represents an investment of some $1.8 billion and puts Ireland on the world biopharma stage. Approximately 300 US entities have been licensed to trade in the IFSC (Dublin’s financial services centre) including Bank of America, Merrill Lynch and Citibank. Nearly half of all inward software investment in Ireland comes from the US, and Ireland continues as the leading location in Europe for software.

Pro-business environment

When compared with some emerging competitor countries, Ireland’s political and economic stability is a strong advantage. Ireland boasts a strong proenterprise environment and American firms appreciate this. In addition to a stable government, a highly educated workforce and a pro-business environment — Ireland’s corporate tax rate at 12.5% is among the lowest in the EU — US companies are attracted to Ireland because it provides easy access to EMEA markets. The quality and flexibility of the English-speaking workforce is equally appealing; of all OECD countries, only the Japanese workforce has a higher proportion of trained engineers and scientists.

The recent National Competitiveness Council survey shows that despite pressure from other countries, Ireland remains highly competitive in terms of both corporation tax (Ireland ranks first of 16 countries benchmarked) and personal taxes (first out of 15). In terms of labour market adaptability, Ireland’s regulations are perceived to facilitate business activity; the country was ranked seventh of 16 countries benchmarked. Furthermore, Ireland is perceived to have one of the most open economies in the world in terms of trade in goods and services, and in foreign investment. Ireland continues to have the highest stock of foreign direct investment per capita amongst the benchmarked countries.

Ireland has also jumped four places in the latest rankings of competitive economies compiled by the World Economic Forum. The State climbed to 26th place in this year’s table from 30th position in 2004. Over the past 15 years, Ireland has migrated from being an agriculturedependent economy to one which is firmly based on modern, knowledgebased industries such as pharmaceuticals, electronics, information technology, financial services, shared services and so on.

US investment continues to grow with more than 34 new investment projects and 3,400 new jobs announced in the first nine months of 2005. These included new investments by global leaders such as Yahoo and Amazon. This excellent performance is an indication of Ireland’s continuing competitiveness in attracting inward investment from the US and it augurs well for the future. It shows that Ireland continues to prosper in an increasingly competitive global environment.

Facts in brief

Ireland’s location is Western Europe, occupying five-sixths of the island of Ireland in the North Atlantic Ocean, west of Great Britain. Strategic location on major air and sea routes between North America and northern Europe; over 40% of the population resides within 100 km of Dublin

Its climate is temperate maritime: modified by North Atlantic Current; mild winters, cool summers; consistently humid; overcast about half the time

Natural resources include natural gas, peat, copper, lead, zinc, silver, barite, gypsum, limestone, dolomite

Agricultural products are turnips, barley, potatoes, sugar beets, wheat; beef, dairy products

Industries include steel, lead, zinc, silver, aluminum, barite, and gypsum mining processing; food products, brewing, textiles, clothing; chemicals, pharmaceuticals; machinery, rail transportation equipment, passenger and commercial vehicles, ship construction and refurbishment; glass and crystal; software, tourism

Diplomatic representation in the US — Chief of mission: Ambassador Noel Fahey

Diplomatic representation from the US — Chief of mission: Ambassador James C Kenny

Contact Information

American Chamber of Commerce in Ireland
6 Wilton Place
Dublin 2, Ireland
Tel: +353 1661 6201
E-mail: info@amcham.ie
Website: www.amcham.ie

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