In Ireland, just five companies are responsible for 44% of all exports, according to a recent report issued by the Central Statistics Office (CSO). Of around 12,000 businesses that trade overseas, these five constitute a dominant force, a revelation that emphasises Ireland’s heavy economic reliance on a select few enterprises, the majority of which are owned by foreign entities.
Data from 2022 indicates a significant reduction in workforce size and an investment cut of $10 billion (€9 billion) at Intel, one of these enterprises. This has sparked apprehension amongst the company’s employees as well as governmental officials, given the business’ substantial contribution to local economies in areas such as Leixlip.
The impact of foreign-owned enterprises on Irish exports is exceptional, with €173 billion of the €199 billion total export value in 2022 originating from these companies. The top ten such businesses contribute to 57% of all exports from the Republic, with the top 100 exporters making up 85% of the total – and these make up less than 1% of all exporting companies in the country.
Interestingly, though only 18% of the 11,769 exporting businesses in Ireland are foreign-owned, they are responsible for a staggering 87% of all exports. This disproportionate influence demonstrates the powerful presence of multinational entities, dwarfing the contribution of enterprises owned by Irish individuals, which is a mere 13%.
The dominance of these large enterprises, particularly the internationally renowned tech conglomerates such as Apple, Google, and Microsoft, is confirmed by tax data from Revenue. These ten businesses account for almost 60% of corporation tax receipts and on an individual level, two of them are said to contribute 10% each. Large businesses, employing over 250 staff, generate €8 of every €10 in exports – demonstrating that in the trading sector, scale and international ownership indeed matter.
The import sector also reveals a similar disparity, albeit not as pronounced. It’s intriguing to note that out of approximately 50,000 businesses importing products into Ireland, one-third rely solely on one country for their imports. Even accounting for intergroup transactions, this indicates a considerably focused supply chain. Despite the diversification efforts over the past years and the ramifications of Brexit, statistics reveal that the UK continues to be a fundamental trade partner for Ireland. In times when the economy is thriving and the Government has the luxury to grant pre-election budgets, all appears well. However, as the unease surrounding Intel exemplifies, it would be unwise to assume that our current economic prosperity is assured.