Departing Finance Minister Micheal McGrath has emphasised the profound influence on Ireland’s economy of the deep-rooted relationship with the US. Mr McGrath, who has been selected by the Irish government for the future role of European Commissioner, made these comments at the 2024 American Chamber of Commerce Ireland’s Annual Dinner and the US-Ireland Business Awards. The event honoured the powerful US-Irish business alliance and the significant contributions made by businesses within Ireland.
Mr McGrath stated that he fully recognises the crucial role continuous investment from US multinational companies has played in multiple decades of Ireland’s economic advancement. He confirmed that the Irish economy remains robust, citing recent labour force data showing the country’s employment rate hit 2.7 million. This includes the addition of over 50,000 job opportunities in the past year alone, an accomplishment especially amid a labour market with limited flexibility.
A key factor in Ireland’s economic prosperity, according to Mr McGrath, has been the attraction of US foreign direct investment, attributable to the high-quality Irish workforce. He highlighted the advantages arising from Ireland’s diverse population, often cited by multinationals as encouraging unique creativity, vibrant engagement and innovative breakthroughs.
Despite the positive outlook, Mr McGrath cautioned against overlooking the competitive strategies other nations are implementing to emulate Ireland’s economic successes. He emphasised US companies’ appreciation of their investment in Ireland, acknowledging the profitable experiences they have had in the nation as contributing to their continued investment and establishment of deeper roots.
However, he underlined that future success is not guaranteed based on past achievements; it must be earned. McGrath stressed the importance of collective efforts towards increasing competitiveness and attractiveness, utilising every opportunity to strengthen it.
Furthermore, Mr McGrath acknowledged the main hurdles mentioned in the AmCham’s 2024 US-Ireland Business report, Building Ireland’s Transatlantic Impact, including housing, competition and skills. He assured AmCham members that the government has prioritised addressing these challenges.
Discussing the importance of enhancing Ireland’s competitiveness, the speaker emphasised the crucial need to persistently fund our infrastructure. As he further explained, this forms the basis for an extensive national development plan spanning multiple years, financed by a historic €167 billion investment – the largest ever made by the country. He ensured that at least €13 billion would be allocated for public capital investment in the current year.
At the event, AmCham honoured the achievements that have positively impacted the business correlation between the US and Ireland through its US-Ireland Business Awards. This esteemed recognition took place under three categories, namely the global impact award, the global community award, and the global leadership award. Intel Corporation Ireland, for their Fab 34 production facility, received the prestigious global impact award. AmCham’s 2024 US Ireland Business Awards ceremony including a splendid Annual Dinner were organised in collaboration with BT Ireland and EY.
Fab 34 facility, being the first in Europe to successfully utilise extreme ultraviolet lithography (EUV) for large-scale manufacturing, plays a significant role in intensifying Europe’s competitive strength in the international semiconductor production sector. This winning facility from Intel has embarked on mass production of its Intel 4 technology, designed to handle the most challenging computing tasks like artificial intelligence (AI), autonomous driving, and futuristic cloud applications.
Recognition determining the global impact and the significance of enterprises operating in Ireland, working towards global projects that stand to benefit society was the key conversation of Feargal de Freine. As head of FDI at EY Ireland and assurance partner, his words reflected their aim at creating a better professional environment while assisting firms in making a significant contribution towards their stakeholders including their local communities. The global impact award from the American Chamber commendably recognises projects noted with a remarkable global or international effect on societies or markets. He further stated that the competition was fierce this year, with exemplary projects spanning diverse areas including research, innovation, development, talent evolution, advanced manufacturing and industries 4.0-5.0, digitalisation and AI, sustainability, and supply chain innovation.
De Freine remarked that foreign direct investment (FDI) has played a pivotal role in Ireland’s economic prosperity for many years, with US companies featuring prominently, constituting almost 60% of fresh FDI investment last year. Ireland has demonstrated strong performance in sectors like software and IT, business services, finance, medical apparatus, and pharmaceuticals. Proficiency in these knowledge-driven sectors will place Ireland in a strong position to compete in the continually evolving, competitive sphere of global investment.
Bank of America was the recipient of the global community award for its involvement in the Mná na hÉireann, Women of Ireland Fund. Co-hosted by Bank of America and Rethink Ireland, alongside the Department of Rural and Community Development, the Women of Ireland Fund was a €2.2 million project that lasted four years. Its aim was to provide support to charity and social enterprise organisations that prioritise the training, upskilling, provision of work experience, and education of disadvantaged Irish women, including single mothers, refugees, and economically disadvantaged women. By 2023, the fund succeeded in exceeding its targets, with 1,088 women securing long-term employment and a further 747 enrolled in certified education programmes. The fund catered to women from a broad age range of 18 to over 65 and from over 30 different nationalities.
BT Ireland’s Managing Director Shay Walsh commented on the global community award, emphasising the need for businesses to prioritize societal improvement. He noted that it is essential for multinational companies to uphold ethical standards, from employee treatment to making wise investment decisions and partnering with responsible organisations. Today, making a positive financial impact is no longer enough, leaders must focus on improving the world they inhabit and repaying society whenever they can. He emphasized pushing the environmental, social, and governance agenda not merely for the sake of presentation, but because it is a beneficial decision for upcoming generations.
Referring to BT’s endeavours in particular fields, Walsh shared that their ultimate objective is to establish beneficial connections. This forward-thinking approach drives them to continually seek opportunities to support communities and actively protect the environment. BT’s initiatives are manifold and include employee-driven fundraising and the investment in the potential of younger generations. Notably, they sponsor the BT Young Scientist and Technology Exhibition, an event that aims to cultivate youngsters’ talent in Ireland. BT’s technological advancements are being utilised to their fullest to enhance sustainability both internally and alongside their consumers, leading the march towards achieving net zero carbon emissions by 2031. Walsh underlined that a mutual sustainability journey, involving both the customers and suppliers, promises a quicker accomplishment of this goal.
Further, Walsh emphasized the need for more action and cooperation. Businesses, in conjunction with governmental agencies and industry sectors, can work collectively towards forming a more promising future. BT is proud to endorse the Global Community Award, a recognition of commendable initiatives undertaken by organisations in the interest of society and the communities they advocate for.
The Global leadership award was bestowed upon Gerry Kilcommins, a former V.P. of global platform manufacturing at Medtronic and the Country Director of Medtronic Ireland, for his noteworthy contributions to US-Ireland business relationships. His innovative and strategic guidance in the medical technology sector, participation in business associations, and involvement in policy-making issues have considerably fortified the economic and diplomatic bond between the United States and Ireland. KIlcommins has firmly supported and strengthened these relations through active involvement in diplomatic efforts, trade delegations, business forums, and bilateral discussions.
Elaine Murphy, the President of AmCham, during the AmCham event discussed the significance of the US-Ireland relationship on the country’s employment market and financial system. She highlighted that the direct and indirect support from US multinationals has resulted in the sustenance of 378,000 jobs and an expenditure of €41 billion in the Irish economy during 2022. She acknowledged that various factors make Ireland an attractive destination for foreign direct investments (FDI). Namely, Ireland globally leads in attracting and retaining talent and ranks seventh in terms of innovation.
However, she highlighted that several critical issues and prospects exist for Ireland, especially in sectors like housing and price competitiveness. These must be effectively utilised and resolved, to guarantee that Ireland continues to be a prime location for US foreign direct investment.