90% of US firms plan to maintain or grow Irish workforce

The findings were released to coincide with AmCham's annual Independence Day lunch in Dublin, celebrating the 250th anniversary of US Independence.

The event at the Clayton Burlington Hotel is attended by more than 450 business leaders and guests, including Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation Jack Chambers.

The survey, conducted over the past week among AmCham members, highlights continued confidence in Ireland as a location for foreign direct investment despite growing concerns over competitiveness.

Almost half (48%) of respondents said they expect to increase employee numbers in Ireland over the coming year, while a further 42% intend to maintain current staffing levels.

However, businesses also identified several challenges that could threaten Ireland's attractiveness for future investment.

One-third of respondents said cost competitiveness is the biggest obstacle to expansion, followed by housing (27%).

Looking ahead over the next five years, housing shortages and public infrastructure constraints were each identified by 22% of respondents as the greatest risks to continued foreign direct investment, ahead of trade tariffs (16%).

Energy infrastructure also emerged as a concern, with more than half (54%) saying Ireland's current energy capacity and security of supply place it at a competitive disadvantage compared with other investment locations.

Artificial intelligence remains a key priority, with 66% of companies planning to increase investment in AI over the next year.

Half of respondents identified AI and emerging technologies as the biggest business opportunity over the next five years, although 52% said access to AI talent remains a barrier to expansion.

Companies also plan to increase investment in employee training and development (51%), research and development (45%), digital transformation (42%) and talent acquisition (39%).

When asked what measures would encourage further investment, 21% cited enhanced research and development incentives as the single most important action Government could take, followed by improving the availability of skilled workers.

Planning reform also featured prominently, with 30% of respondents identifying planning regulation as the area most in need of simplification, ahead of energy policy and AI regulation.

AmCham chief executive Paul Sweetman said the survey underlined the strength of the economic relationship between Ireland and the United States.

"The US-Ireland relationship has evolved into one of the world's most successful economic partnerships, built on decades of investment, innovation and collaboration.

“Irish companies employ almost as many individuals across all 50 US States as American companies employ in Ireland.

“Over 1,000 US companies operate in Ireland, contributing more than 40 billion annually to the economy, meanwhile Irish companies have invested $390bn into the US economy."

While global uncertainty remains, he said maintaining Ireland's competitiveness will be essential.

"While volatility is likely to remain a defining feature of the decade, stability, predictability and trusted partnerships will become more valuable.

 Minister Jack Chambers attended the event. (Pic: Conor McCabe Photography)
“Ensuring that Ireland remains competitive is critical to maintaining success.

“90% of our members surveyed in the past week said they plan to increase or maintain employee numbers in the next 12 months, while 70% said their corporate headquarters already have plans to invest further in Ireland in the next 5 years."

* This article was originally published on BusinessPlus.ie.