- IDA Ireland achieves all targets in ‘Winning – Foreign Direct Investment 2015-2019’ Strategy
- Numbers directly employed in multinational sector in Ireland at an all time high – 245,096
- 1,209 investments won over the course of IDA Ireland’s ‘Winning – Foreign Direct Investment 2015-2019’ Strategy, creating 112,373 jobs, making it IDA’s most successful period of investment to date
- Regional investments increase by 50% over the past five years
- In 2019, 21,844 new jobs created in 250 projects in FDI companies. Half of investments were first time investors.
Minister for Business, Enterprise and Innovation, Heather Humphreys and IDA Ireland, the Irish Government agency responsible for attracting foreign direct investment (FDI) to Ireland, today announced that employment levels in its client companies have now reached 245,096 – the highest ever number employed in the multinational sector, exceeding targets set by Government contained in IDA Ireland’s Strategy – Winning: Foreign Direct Investment 2015-2019.
The results announced today show another strong performance in 2019, which saw 250 investments made with 21,844 jobs created in FDI companies in the final year of IDA Ireland’s current strategy. The net gain was 13,867 additional jobs.
| Results 2018|
(Announced Jan 2019)
|Net Employment Change||14,040||13,867|
Minister for Business, Enterprise & Innovation, Heather Humphreys TD said: “2019 was another very positive year for foreign direct investment in this country. The record level of employment represents a strong vote of confidence in our economy by international investors. It demonstrates too that Ireland’s economic strengths – particularly our first-class workforce and pro-enterprise policy environment – remain highly attractive to multinational companies.”
“The regional impact that FDI is having in Ireland is especially positive. The Government has made regional development an absolute priority and that commitment has produced real results. The ambitious target of an increase of investment in every region of 30%-40% has now been met. We now have more people employed by IDA companies outside Dublin than ever before. Our focus in the coming period will be growing those numbers even further and ensuring that the benefits of FDI continue to be felt right across the country.”
“It is important that we do not take our continuing FDI success for granted. All of the investment projects, which deliver these much-welcomed jobs all over Ireland, are the product of intensive work. The challenge – particularly if international market conditions become more difficult in the years ahead – is to maintain Ireland’s competitiveness and our attractiveness to overseas firms. That’s exactly what the Government is doing through Future Jobs Ireland, the whole of Government plan to prepare our businesses and workers for the future, and we will continue to work hard to ensure that this proves to be the case.”
Martin Shanahan, CEO of IDA Ireland said: “Foreign Direct Investment continues to be a substantive driver of the economy.
The benefit spread to the wider Irish economy can be seen in the expenditure by IDA clients which totalled €21.5 bn, an increase of 11%, and is made up of:
- Payroll + 12%: €13.3bn
- Materials +9%; €2.6bn
- Services +12%; €5.6bn
FDI exports increased by 14% to €218.7bn accounting for 68% of national exports.
Capital expenditure increased by 8% in the year to €5.9bn with the majority of that spend in Life Sciences and Technology.
There were 18 first time new R&D investment approvals for IDA client companies in 2019. The R&D staff total stands at 18,834, up 11%. The client spend on in-house R&D was €2.2bn in 2018, up 10% with a further €1.4 bn spent on outsourced R&D.
“Employment growth in 2019 was 6% compared to 2.4% nationally and IDA Ireland clients now account directly for 10.5% of national employment. We have seen employment growth across all regions and sectors. Over the lifetime of our current strategy we have won 1,209 investments in total; 562 of which are new name investments, 400 were expansions by established companies and 247 were RD&I investments, an uplift of 134% on our target and resulting in 112,327 jobs being created. That speaks to a continued confidence in Ireland’s investment proposition as a stable and reliable location for global investors, evidenced by the number of new name companies who invested here in 2019 – 125 of the 250 investments won. 88 investments made last year were expansions by established companies, demonstrating their considerable commitment to Ireland. Indeed longevity, resilience and commitment are the hallmark of multinational companies in Ireland; one third of MNCs have been here for 20 years now, with others operating successfully for 25, 30 and more years. That longevity has been of enormous benefit to the national and regional economies. Fortunately, job losses continue to be historically low and in fact job maintenance is at an all-time high.
On regional investment Martin Shanahan said:
“75,635 jobs were created outside of Dublin over the past five years leading to 33,118 additional direct jobs (net) on the ground in regions at the end of this strategy. 110 investments were won for regions in 2019 with 5,368 net jobs created. Every region hit the five-year strategy targets of a 30% uplift in investment we set out to achieve and three regions – the Mid West, Mid East and South East exceeded 40% of targets. Investments in The Border region increased threefold since the outset of the strategy. This is clear evidence that our deliberate and focused strategy of targeting investment for regions is paying off. That includes our Regional Property Programme which has delivered seven of 11 planned advance building solutions – technological or office buildings – to offer investors attractive turnkey building solutions in regional locations. All seven of the buildings completed are now occupied by businesses, demonstrating the success of this strategy of stepping into the market where we see opportunity and can secure clients when the necessary properties aren’t being provided by the private sector.”
IDA Ireland has a deliberate strategy of source market
diversification. In 2019, 63% of investment came from the US and while
it remains the engine of jobs growth, the amount of investment from
other countries grew faster – from 30% in 2014 to 37% in 2019.
On the outlook for FDI Martin Shanahan said: “The FDI performance over the past five years has been unprecedented. My expectation is that this strong performance will continue into the first half of 2020. As we finalise our strategy for the period 2020-2024, which will be launched soon, we observe significant downside risk in the marketplace over the next five-year period. Those risks emanate from the possibility of an economic correction in key source markets, continued trade tensions, subdued global economic growth and from domestic challenges related to competitiveness and the carrying capacity of the economy. We have developed our new strategy to, as far as possible, withstand the challenges of global political and economic uncertainty. Our value proposition continues to be strong, we are well positioned as a gateway location to Europe and are committed members of the EU. We are business friendly and supportive. Talent continues to be an important asset. Being competitive is more important than ever for our client companies to continue to grow and develop and as Ireland expands its footprint across the globe, seeking out new markets to win investment.”