NEW DELHI:
Minister for Business, Enterprise and Innovation, Heather Humphreys, and IDA Ireland, the Irish Government agency responsible for attracting foreign direct investment (FDI) to Ireland, has today announced that employment levels in its client companies have reached 229,057. FDI’s performance has exceeded targets set by Government contained in IDA Ireland’s Strategy – Winning: Foreign Direct Investment 2015-2019.
For context, IDA clients added two and a half times more jobs under “Winning” FDI strategy than in the first 4 years of IDA’s previous strategy 2010 – 2014. 58% of employment is now outside of Dublin in 2018, which is the highest number of people employed by IDA clients outside of Dublin in the history of the organisation, with more jobs added in the regions than at any time over the past 17 years.
Welcoming the results, Heather Humphreys, Irish Minister for Business, Enterprise and Innovation said: “The IDA’s record results for 2018 underline how strongly Ireland continues to perform when it comes to attracting FDI. The significant increase achieved in employment is all the more impressive considering the highly competitive global FDI marketplace in which Ireland and the IDA operate. The Government will continue working hard in 2019 to ensure that Ireland remains a destination of choice for overseas firms looking to invest or expand their presence in Europe.
The Minister added: “Our ongoing efforts to grow and sustain FDI here are complemented by other actions we are taking to improve the capacity and resilience of enterprise in Ireland. This includes the new Future Jobs strategy, a whole-of-Government initiative that will better position our economy to meet the challenges that lie ahead.”
Martin Shanahan, CEO of IDA Ireland said: “Foreign Direct Investment has transformed Ireland over the last 70 years. FDI continues to drive the economy with strong employment growth at 7%, compared to national average of 3% in 2018. FDI Exports experienced growth of 10% and an increase of 8% in the amount spent in the Irish economy on Payroll, Materials and Services – this now stands at over €19.2bn. The strength of FDI can also be seen in increasing Corporation tax receipts – IDA Client companies account for an estimated two thirds of Ireland’s Corporation tax and one third of combined Income Tax, USC and Employer PRSI tax. Ireland’s investment proposition continues to resonate with companies across the globe as investors search for stability and certainty.”
“Once again, the 2018 figures show a consistent pattern of extremely strong job creation amongst IDA Client companies in recent years.
“It is important to remember that only ten years ago, across 2008 and 2009, Ireland lost over 35,000 FDI jobs during the Global Financial Crisis. This is a salutary reminder that we can take nothing for granted and we need to be vigilant, particularly in relation to our competitiveness. All jobs are fought for and won against increasing international competition.”
Tanaz Buhariwalla, Director India said: “IDA has had another stellar year and our performance in 2018 has been in sync with our strategy. Indian companies have shown tremendous interest in Ireland as their EU destination especially in a post-Brexit scenario. Many Indian companies are keenly watching the developments with Brexit and have started conversing with IDA, in confidence, to seek options. I believe 2019 will be an interesting year for IDA in India and our discussions will see conversions very soon. Most of the companies showing interest are from IT, Pharma and Banking sectors.”
Apart from direct employment and skills transfer, IDA Ireland’s client companies have a hugely positive effect on the local economy with over eight jobs being created for every 10 jobs in an FDI company. Spillovers from Multinational Company (MNC) investment directly into the Irish economy include expenditure on Irish materials and services totalling €7.5bn, an annual payroll spend of €11.7bn and capital investment of €5.7bn on new buildings and machinery and equipment.
A significant part of the record corporation tax takes can also be attributed to the thriving FDI sector in Ireland.
IDA Ireland’s clients are also significant employers; with average salaries at €66,000[4] in 2017 they are consistently above national averages (€46,402). As a result foreign MNCs account for one third of total Income tax, USC and Employers PRSI paid in the state.
BREXIT
IDA Ireland has continued to secure a substantial number of Brexit-related investments in 2018 with the overall figure now standing at 55+ for investment approved with over 4,500+ associated jobs. For investors, the importance of Ireland’s ability to provide a stable predictable investment climate cannot be overstated. We have continued to engage significantly with our clients on this issue, fighting for any mobile investment that arises.
Ireland’s advantages in a post-Brexit context include English language, commitment to the EU, a common law system in addition to our existing competitive proposition.
Leading companies like Bank of America, Morgan Stanley, Legal & General, Everest Re, Central Pharma, The Standard Club, Coinbase, Citi Group, Barclays, AXA XL, Wasdell Group, EquiLend, Thomson Reuters, BRE Global, Simmons & Simmons, Neueda Technologies and Depository Trust and Clearing Corporation (DTCC) have all declared a new or expanded presence for Ireland in 2018.
Among the leading investments secured this year were:
Jaguar Land Rover announced its new software engineering centre in Shannon, Co. Clare creating 150 jobs.
AbbVie in Sligo announced the expansion of its manufacturing facility with an €139m investment and creation of 100 new roles.
MSD will develop a new biotechnology facility in Dublin with the creation of 350 new jobs.
MSD is to construct a second manufacturing facility at its existing site in Carlow with the creation of 170 new jobs.
The new facility will focus on the production of vaccines and biologics and there will also be an expansion of warehouse and laboratory services at the site.
Deutsche Börse Group announced that it will further expand its activities in Cork by adding 200 jobs to reflect the growing funds business of its post-trade services arm Clearstream.
Edwards Lifesciences announced an €80m investment in a new manufacturing facility for Limerick with the creation of 600 new jobs.
Wuxi Biologics will invest €325m and create 400 new jobs in a new biologics drug substance manufacturing facility in Dundalk, Co. Louth.
Red Seal Cups, manufacturers of packaging material for the foodservice sector announced it is to establish a manufacturing and supply operation called Red Seal Cups Limited in Longford. The new facility will create 100 + jobs over three years.
Genesys® the global leader in omnichannel customer experience and contact centre solutions announced it is creating 200 new technology jobs in Ireland over the next three years. The senior and highly skilled technical roles are based at the company’s new Galway office.
Overstock.com, Inc., E-commerce and technology leader announced plans to expand its European base in Sligo, Ireland, creating 100 new research and development roles and more than tripling the office’s current headcount. The new full-time positions will include junior and senior roles in areas such as software development and testing, machine learning, and data analytics.
Groupe Adéquat & Sigmar announced the creation of 50 jobs in Co. Kerry. The positons are for international recruiters to work in the company’s European Talent Hub, which has just opened in Tralee.
Abbott in Donegal is to expand its existing manufacturing facility which will result in the creation of c.500 new jobs over the next number of years.
Neueda Technologies, a privately-owned IT Training, development and consulting services company headquartered in Belfast, has established a Software Engineering Hub in Athlone, Co. Westmeath, employing 200 staff over four years.
Phibro Animal Health Corporation announced plans to establish a biotech facility producing a range of innovative animal health vaccines on the IDA Ireland Finisklin Business Park in Sligo, creating up to 150 jobs over 5 years.
Bausch Health Companies Inc. announced the expansion of its contact lens manufacturing capacity at its site in Waterford creating 100 new jobs between the two sites. Bausch Health currently employs approximately 1,350 people in Waterford.
Avery Dennison Corporation announced plans to expand its medical product manufacturing operations in Longford, increasing the Finesse Medical Ltd. facility’s end-to-end medical device manufacturing capacity and capabilities for its customers. 200 new roles are being created as a result.
Central Pharma announced it is to establish an EMEA accredited contract packaging and supply centre at the IDA’s Advanced Technology Building in Tralee, Co. Kerry, creating 100 jobs over five years.
