US multinationals warn Government to sort out housing crisis and energy supplies

More than half of US multinationals in Ireland believe the State must overcome its housing crisis if it is to allow businesses to expand here.

Six in 10 leaders of US operations in Ireland questioned for an American Chamber of Commerce (AmCham) survey said housing requires the most urgent investment from Government, with over 80 per cent believing that the State should implement a system to prioritise critical infrastructure and investments within the planning system.

Almost all – 96 per cent – also cited energy cost and supply as a key factor in foreign direct investment in Ireland.

It comes as the majority of AmCham members say they expect to take on more staff in the next 12 months. Some 70 per cent of member companies said they expect to increase employment in the coming year, up from 64 per cent in March.

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The survey, which was conducted earlier this week, also found Ireland was viewed positively by corporate headquarters as an investment or growth location, with more than 90 per cent holding that view.

Although 93 per cent said the workforce here was meeting recruitment needs, 76 per cent said there needed to be more collaboration between third-level institutions and industry. Almost a fifth want more focus on apprenticeships.

The survey was released as AmCham members gathered in Dublin on Tuesday to celebrate US Independence Day with the guest of honour, Minister for Finance Michael McGrath. The event was attended by over 500 members and guests, and was sponsored by AIB.

“We have the opportunity to make the decisions that will shape Ireland’s future as a top location for business, research, innovation and for talent. We believe now is the time to make the necessary investments, not only to address the challenges of today, but to seize the opportunities of tomorrow,” AmCham president Seamus Fives said. “Our challenge, and our opportunity, is to show the world that we can plan and deliver a society where eight million people can lead healthy, safe and successful lives.”

Mr Fives said the business ecosystem was also changing, with US multinationals now employing 210,000 people in Ireland, up from 160,000 in 2019, an increase of more than 30 per cent in four years.

According to the survey, more than half of companies are undertaking research projects in Ireland, with artificial intelligence, sustainability and medtech among the most common areas.

The organisation has included a number of recommendations to support business growth, innovation and sustainability in its 2024 budget submission, covering investment in renewable energy solutions, enhancing the research ecosystem, and more investment in digital and cyber skills, and digital infrastructure.