Ireland and the US have had a long and storied relationship, with many Irish people making their way over the pond for one reason or another at some point – and many staying for the long haul. It seems that no matter who is president, or where they hail from, they’ll find an Irish connection somewhere in their family tree.
While the impression may be that the trade relationship goes one way, with many of the biggest American companies having their European headquarters in Ireland and contributing to our GDP, Ireland is pulling its weight in the US and is the seventh largest investor in the US. There are currently 500 Irish companies employing almost 100,000 people across all 50 states.
How has such a small nation become such a big player in the US?
Ireland and the US have a long-standing mutual FDI relationship with hundreds of thousands of people employed in both directions, said Kevin Elliott, head of global foreign direct investment, Bank of Ireland. “In 2023 overall FDI investments into the US from Ireland were valued at circa $322 billion, a figure that has been increasing year on year. Exports from Ireland to the US recently reached a new record high of circa €3 billion.
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“Ireland is the [seventh] largest investor into the US, coming in ahead of companies like India, China, Australia, and South Korea,” he adds.
The US is a very significant market for Irish companies, says Feargal De Freine, partner and head of FDI at EY Ireland. “It’s an affluent economy with 330 million consumers, and as such it is a natural destination for Irish companies looking to expand.
“The profile of Irish companies operating in the US is hugely varied and includes many industries such as food and retail, building materials, technology, and financial services to name a few. The size and scale of Irish organisations with a footprint in the US also varies greatly, from emerging start-ups just beginning to establish a foothold to large, well-established and mature multinationals.”
The large footprint of US investment in Ireland has created a strong network of business connections across both countries, including a large number of Irish executives in the US who have deep familiarity with the business landscape, says De Freine. “Ireland is a small, open, highly-traded economy so to grow their business Irish entrepreneurs need to look beyond the local market to grow and it’s natural to look west.”
Ireland is incredibly fortunate to have such a deep cultural connection with the United States, says Elliott. “For decades ambitious Irish companies have taken up the challenge of building their businesses in the US market, and today we are seeing the fruits of that ambition in the continued success of these businesses stateside.
“Ireland has one of the most talented and highly educated workforces across the globe, and from this cohort a new generation of digitally native Irish entrepreneurs have identified the United States as an optimum location to grow their businesses.”
The trade relationship between Ireland and the US is very important from an economic perspective, says De Freine. “Recent EY research indicates that three in five inward investment projects into the State last year originated from the US, compared with one in five across Europe, a ratio that has been broadly constant in recent times.
“This creates a channel not just of investment from the US in terms of capital and employment, as well as tax receipts, but also of ideas, innovation and relationships. This in turn builds confidence in Irish investors to think differently about the future of their own businesses and oftentimes to go the other direction”.
Ireland has a deep and enduring commitment to supporting the continued success of the transatlantic trade corridor, says Elliott. “This has been consistent through successive governments and business cycles. Decades-long ties within the business and political circles will ensure continued growth in the years to come.”