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Housing Remains Main Challenge for US Multinationals in Ireland

Housing remains the top concern for almost 40pc of US multinationals in Ireland, according to a survey from the American Chamber of Commerce.

The survey, which was conducted last week, revealed that the US multinational community remains largely optimistic for the future of their businesses in Ireland despite economic challenges.

Around 60pc plan to increase the number of people employed at their Irish operations in the next 12 months, while a third expect to maintain the current number of employees here.

Over 90pc of firms surveyed reported that their corporate headquarters continue to have a positive view of Ireland as an investment or growth location.

However, 96pc stated that reaching 100pc capacity at airports and ports here remains a worry for those considering further investment into the country.

Almost all multinational companies surveyed said that an increase in personal taxes on high earners would be damaging to foreign direct investment into the country, with 60pc describing such a move as “extremely damaging.”

All of the companies stated that high income earners are important to building teams and supporting job creation in the Irish market.

A lack of housing for workers was the main concern for 38pc of respondents when it comes to considering expansion in Ireland.

A further 18pc described cost competitiveness as its main challenge here, while 13pc pointed to skills shortages.

There are around 900 US companies in Ireland employing almost 200,000 people, according to the Chamber.

These businesses now employ over 375,000 people directly and indirectly, spending over €31bn in the Irish economy each year, American Chamber President Seamus Fives said.

“It is important that Ireland addresses infrastructure issues including housing and transport capacity in our airports and ports, to ensure the country maintains its status as a great location for FDI,” American Chamber chief executive Mark Redmond said.

“While some in the tech and pharma sectors have experienced a period of adjustment globally in 2023 following stellar growth during the pandemic, overall the outlook for the year ahead is positive, reflecting the strength and depth of their Irish operations,” he added.

Ireland is on course to have entered a recession this year due to slowing pharmaceutical and computer exports, the EU predicted last week.

Ireland’s gross domestic product (GDP) is expected to decline by 0.9pc across the year, according to the European Commission.

Final confirmation of growth here will not be evident until the end of the year.

Source : Independent