Speaking at the American Chamber of Commerce Ireland’s (AmCham) 2022 Global Business Conference, Minister for Finance Paschal Donohoe said that the longevity of the US-Ireland Business relationship is testament to its positive, mutually beneficial nature and the pro-business, pro-enterprise culture in Ireland.
The Minister said; “There are companies here in Ireland that have been present for many decades, who are American.
“And many decades later, we're still in a position where this is an economic relationship that is very positive, that continues to grow and that we hope is mutually beneficial for both countries.”
The Minister added: “I make the case for all of the positives ... Our belief in openness, the stability we bring to many important policy areas, the welcome here in Ireland that I genuinely think we try to afford anybody who comes to our country, the pro-business pro- enterprise culture that is really embedded in our economic DNA.”
AmCham’s Global Business Conference, which was kindly sponsored by Bank of America, followed the publication of its 2022 US-Ireland Business Report: ‘Ireland – The Next Century’. The AmCham publication reported that the US-Ireland trade and investment relationship stands at an all-time high, with record investment in both directions.
The Report, which contained contributions from Taoiseach Micheál Martin, Government ministers, opposition TDs, stakeholders from across the EU and the US reported that in 2021 there were almost 900 US multinationals operating in Ireland, directly employing 190,000 people and supporting a further 152,000 jobs in the wider economy. In 2020, US multinationals spent €12.4bn on payroll, €8.8bn on goods and services and €6.5bn on capital expenditure.
Meanwhile Irish investment in the US was also at an all-time high, with over 700 Irish firms having a base in the US, employing 100,000 people.
In light of the record levels of transatlantic investment, the 2022 AmCham Global Business Conference, addressed issues in the context of Global Trade and Investment including the opportunities for Ireland in Sustainability, the 21st Century Diversified Global Supply Chain, Data, Digital and Privacy and the Future of Work, Team Culture and Collaboration.
AmCham was honored to be joined at the Conference by European Commissioner Mairead McGuinness who spoke about the need for significant public and private investment in sustainable activities to meet the European Union’s climate targets.
The Commissioner strongly noted; “We need to decarbonise and improve energy efficiency. This will improve dependency on fossil fuels. It will also improve the EU’s energy security, which has never been more important.”
“We need the full support of our financial system to reach these goals and while public finance will go a long way, we estimate the broad environmental sustainable investment gap is between €100 billion and €150 billion annually."
Commissioner McGuinness added that the EU Taxonomy is the cornerstone of the EU’s sustainability work. “It helps companies to plan their transition by giving them clean parameters on what is sustainable, and it also helps investors providing financing for sustainable activities,” she said.
The Commissioner added; “But I want to be very clear, the taxonomy is not a mandatory list of activities to invest in. It is a voluntary tool that can act as a signpost for private investment on the road towards sustainability.”
Chief Executive Officer of Bank of America Europe DAC and Country Executive for Ireland, Fernando Vicario, told the Conference that US multinationals must invest in sustainable practices, both for the benefit of the climate and to ensure that their company continues to attract the best talent.
Vicario said; “More and more, employees are voting with their feet and choosing to work for a company that clearly exhibits ESG (environmental, social, and corporate governance) credentials. The next generation of talent demands transparent ESG standards, they are excellently uncompromising on the matter. As a champion of ESG professionally and personally, this shift is something I find truly heartening.”
AmCham President and General Manager of Northern Trust Limerick, Catherine Duffy, joined a panel of speakers on the topic of talent attraction and regional economic development in Ireland.
Duffy said: “Regional development and ensuring that Ireland remains an attractive home for talent, are two of my key priorities.”
“Ireland’s competitive edge is its people. The share of 25–34-year-olds in Ireland with a third-level qualification is just over 53%, compared to an EU average of 40 per cent, so Ireland has proportionally, the fourth most international workforce in the EU.”
AmCham vice president, and VP API Manufacturing Operations at Pfizer Pharmaceuticals, Seamus Fives, also joined the panel, speaking on the importance of industry specific clusters for the development and recognition of regional areas of excellence across the country.
Fives said; "That development of industry-specific clusters, I believe, will benefit the future of FDI in Ireland, providing a great opportunity for Ireland to increase its attractiveness for investments, allowing our regions to be considered areas of excellence for key sectors."
He added; "I think Cork is a great example, we have clusters of AmCham member companies who are leading the way for example, in the pharmaceutical sector. I think clustering can also be a benefit in driving collaboration in part between industry and academia, therefore ensuring that industry and opportunities for students and graduates who can get practical experience in these fields."
President of International at Bank of America, Bernard Mensah, told the AmCham Global Business Conference that Ireland is leading by example in terms of how small open economies can attract inward investment; "I think what Ireland is doing reflects what small open economies should do."
Mensah said that having a talented and skilled workforce, consistency of regulation and leveraging technology is essential to ensure countries such as Ireland continue to attract inward investment.
“Ireland has the additional benefit of English speaking and common law rules background and also just an incredible talent pool,” Mensah added.
The AmCham Global Business Conference also featured discussions on key topics including data, digital and privacy, diversified global supply chains, and the challenges and opportunities for multinationals and their stakeholders.
In the context of the current geopolitical climate, AmCham chief executive, Mark Redmond, noted that at the heart of the Conference discussions “is a commitment to the values and institutions that guarantee human dignity and liberty and our steadfast solidarity with the people of Ukraine.”
“During today's conference, we will hear about Ireland's success in attracting inward investment, becoming a global leader in innovation and transforming from an isolated island of emigration to a global, inclusive centre of talent.”
“All of this was made possible thanks to international institutions, safeguards and protections and Ireland advocates on the global stage for the shared values of the European Union - human dignity, democracy, equality, the rule of law, and human rights.”
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