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New strategies required to maintain Ireland’s success in attracting US investment

Ireland must adapt to sustain growth says AmCham chief executive, with infrastructure topping list of key strategic policy pillars

Consistency in Ireland's 'pro-business, stable and competitive environment' is required for continued gains from US investment. Photograph: iStock
Consistency in Ireland's 'pro-business, stable and competitive environment' is required for continued gains from US investment. Photograph: iStock

The American Chamber of Commerce Ireland (AmCham) has been promoting trade, investment and the transatlantic business relationship between Ireland and the US for the past 63 years and that work is set to continue with the launch of a new strategy next week.

“Over the last six decades AmCham has been fostering an exemplar community of business leaders and laser-focused policymakers, to make Ireland an ever more attractive place for US investment and a platform from which Irish companies can propel themselves into the US market,” says AmCham chief executive Paul Sweetman.

Paul Sweetman, chief executive of the American Chamber of Commerce Ireland. Photograph: Conor McCabe
Paul Sweetman, chief executive of the American Chamber of Commerce Ireland. Photograph: Conor McCabe

“Longsighted policies, the tremendous work of our state agencies – the IDA and Enterprise Ireland – the dogged efforts of the business community and close collaboration with the US embassy and successive Irish Governments have all resulted in phenomenal growth.”

That growth has resulted in 378,000 people in Ireland being employed directly or indirectly by 970 US multinationals.

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“That’s 7 per cent of the population, or almost one seventh of all people in work in Ireland today,” says Sweetman. “Ireland has become a strategic hub for global decision makers in major American corporations and is also the seventh largest foreign direct investor into the US, up from ninth last year. Irish companies now employ 110,000 people in the US.”

However, the factors that have contributed to Ireland’s success up to this point may not deliver the same success into the future.

“Ireland must adapt to ensure it remains an attractive location for people and businesses to invest,” says Sweetman. “Work needs to be done to reinforce Ireland’s competitive advantages and win investment in a new world of challenges and challengers. Looking ahead, we must consider what changes are necessary to support Ireland in achieving a prosperous future, driving continued growth and delivering for our communities and people.”

Consistency is also required in certain areas, he adds: “In a world where geopolitical shocks are becoming ever more prevalent, it is essential that Ireland maintains a pro-business, stable and competitive environment, all underpinned by being a leading advocate for open trade.

“Within AmCham’s membership is a deep community of leaders that are committed to both the success of their organisation and the success of Ireland. While not a guarantee, Ireland has the opportunity – built on a pedigree of delivery and can-do attitude – to capture the next wave of investment and growth. This will be the focus of our new 2025-2027 strategy, which we are launching next week.”

That strategy will focus on building on existing strengths and addressing weaknesses and deficits that have emerged in recent years, says Sweetman.

Some of those policy areas and projects are long term in nature but what we want to see is consistent incremental progress

—  Paul Sweetman

“Ireland is currently ranked as the fourth most competitive country in the world,” he adds. “However, looking at Ireland’s detailed competitiveness rankings, there are several areas where AmCham must use its voice to advocate for pressing change – all against the backdrop of a shifting geopolitical environment, global policy shifts and intense competition for investment. Through our advocacy positions, wider activities and initiatives, AmCham will focus on five strategic policy pillars to influence growth and meaningful change for our members.”

These strategic pillars are: improving Ireland’s physical and digital infrastructure; securing cost competitiveness, stability and the ease of doing business; building the future talent and skills pipeline; enhancing Ireland’s research, development and innovation (RD&I) offering; and making Ireland the primary economic bridge between the United States and the European Union.

In terms of physical and digital infrastructure, Sweetman highlights the need to create world-class, sustainable, cost-effective and ambitiously future-proofed energy, water and wastewater infrastructure as well as meeting demands in key areas such as housing. Other areas of focus include developing a best-in-class planning system and promoting the movement of people and goods with ease, focusing on rapid project execution, capacity constraints and cross-government co-ordination.

On cost competitiveness, the reduction of the regulatory burden on companies with reference to competing jurisdictions is a key area of focus. Other areas include the introduction of enhanced incentives for companies to establish in Ireland, the promotion of programmes that create connections between Irish companies, US multinationals and the US market, and embedding a corporate tax system that is competitive, stable and certain.

Key actions for the future talent and skills pipeline include securing adequate funding and supports for Ireland’s universities, educational institutions and apprenticeship programmes, improving quality of life and the competitiveness of Ireland’s personal tax regime to attract and retain talent, and making Ireland a beacon for diversity and inclusion.

The creation of a globally competitive RD&I ecosystem in Ireland, where companies and research institutions are inextricably linked, is a top priority, as is making Ireland a leading voice in EU institutions calling for a more competitive European RD&I ecosystem, says Sweetman.

In terms of making Ireland the primary economic bridge between the US and EU, AmCham will use its influence to protect and enhance Ireland’s position as a key regulatory hub in the EU for multinational organisations as well as to harness and develop Ireland’s unique business, social and cultural ties across the US and EU, he adds.

“It is important to note that delivering change will not be done alone,” Sweetman concludes. “We will work openly and productively with stakeholders, policymakers and a broad range of organisations. AmCham’s goal is for Ireland to be the most competitive place in the world for US FDI to thrive. To achieve that goal, we need to move forward with a sense of urgency.

“Some of those policy areas and projects are long term in nature but what we want to see is consistent incremental progress. That’s what investors will look for. If they see that, it will be incredibly encouraging.”

Barry McCall

Barry McCall is a contributor to The Irish Times