Manufacturing & Supply Chain

IDA Ireland has announced its annual performance for 2024 showing continued strong levels of investment and employment across the FDI sector. The agency, working on behalf of the Irish government, has successfully delivered regional investment and substantial transformative projects in the areas of research and development, innovation, sustainability, and talent development.

IDA Ireland, which has responsibility for attracting and retaining foreign direct investment into Ireland, continued to secure significant investments of scale and employment opportunities, reporting a total number of 234 investments which will lead to the creation of 13,500 jobs over the next few years.

Of these investments, 59% were in regional locations outside of Dublin in keeping with IDA Ireland’s strategic aim of balanced regional development. This is an increase in regional investments from 53% last year. 69 investments were from new name or first-time investors, strongly indicating Ireland’s ongoing attractiveness as an FDI location. These included cutting edge companies such as Calypso AI, Evernorth, Sirius XM, and UKG.

Almost half of all investments in 2024 were underpinned by innovation, digitalisation, and sustainability focused on decarbonisation, developing advanced cutting-edge technologies, and driving talent and skills development.

A record level of R&D investment valued at €1.9 billion across 64 projects was approved by IDA Ireland during the year, affirming Ireland’s reputation as a location for the development of innovative technologies, global business services, and products.

IDA Ireland actively partners with FDI client companies to help them deliver on their sustainability and skills agendas. This has enabled our clients to commit capital investment of €117 million towards sustainability investments and a further €118 million in the training and up-skilling of their workforce.

Investments by IDA Ireland client companies consistently generate highly skilled jobs nationwide, evidenced by the 302,566 people directly employed this year by over 1,800 companies. This number sees employment levels within the FDI sector remain above 300,000 for the third consecutive year, demonstrating a solidified employment base that strategically positions the economy for future growth.  This represents a slight increase (0.2%) in client employment and accounts for 10.8% of overall national employment. Job growth was recorded in Modern Manufacturing and Traditional Manufacturing, up 0.8% and 0.4% respectively.  Business, Financial and Other Services also reported an increase (1.7%) whilst ICT saw numbers decline (1.2%).  This reinforces the critical importance of continued diversification across new and emerging sectors to drive sustained future growth.

In the face of ongoing global competition and a changing trade and investment landscape, Ireland has a strong platform for growth as reflected in the latest ABSEI  results. Expenditure within the economy by FDI companies increased by 6.5% to €38.6 billion during 2023 showcasing the resilience and adaptability of our economic framework. Payroll rose by 7.6% to €23.9 billion; spending on Irish services and materials grew by 4.7% to €14.6 billion and total exports of €421 billion marked a 7.3% increase year-on-year. In addition, capital expenditure of €13.2 billion, represented the second highest level on record reflecting strong levels of investment activity.  In tandem, in-house R&D investment by IDA Ireland clients during 2023 reached €9 billion, marking an increase of more than 26% on the previous year.  These figures speak to the significant contributions of FDI companies to the Irish economy and to the conducive environment for further growth and investment. Ireland cannot afford to be complacent about FDI. It is essential that we ensure an environment that not only attracts but retains and grows investment, especially in an intensely competitive global landscape.

As IDA Ireland prepares to launch its new five year strategy in 2025, the agency has delivered exceptional performance against targets set out in its last strategy, “Driving Recovery & Sustainable Growth”.  IDA’s new strategy will continue to prioritise growth and transformation through innovation, digitalisation, talent development, and sustainability across our existing key strategic sectors to build on Ireland’s FDI success to date. Fundamental to driving this continued growth and success is a focus on competitiveness, agile policies, and delivery of national infrastructure.

Peter Burke, Minister for Enterprise, Trade and Employment, said: “Despite many challenging global issues such as the impacts of Brexit, the Covid-19 pandemic and the war in Ukraine, Ireland continues to be seen as a location of choice for new investors as well as long-established companies who choose to further invest in substantial expansions of their operations here. Ireland offers a competitive, consistent, and transparent corporate tax regime, good access and connectivity and an excellent return on investment, as well as being an attractive environment where people want to live and work.

“Competition for FDI remains intense. Every job created in Ireland by an FDI company has been hard won, against competition from a growing number of sophisticated locations and economies. Yet in 2024, Ireland ranked fourth place among 67 economies measured for their global competitiveness in the 2024 IMD World Competitiveness Ranking. This is the second consecutive year Ireland has been placed in the top five economies globally.

“For decades, Ireland’s talent base has made the country a prime destination for many of the world’s top companies. Today, around 55% of people aged 25 to 34 in Ireland hold a third-level degree compared to a 40% EU average. In addition to our highly educated and skilled workforce, Ireland offers access to a 250 million strong EU workforce. This is reflected in the strong job creation results reported to me by our enterprise agencies, including from highly mobile FDI.

“There are, nonetheless, domestic challenges that we must address as highlighted during the September Competitiveness Summit chaired by Taoiseach Simon Harris in which I participated along with the Minister for Finance.

“In recognition of the increasing competition internationally for FDI, IDA Ireland will receive an additional €15.5 million in capital funding next year. IDA Ireland will target significant FDI investment in 2025, with a focus on RD&I, Sustainability and Digitalisation. The additional funding will also help IDA to strengthen its team and deliver enterprise-focused property solutions across the country reflecting the Government’s commitment to Regional Development.”

Michael Lohan, CEO, IDA Ireland, said: “The stability in employment levels by FDI clients highlights the sector’s resilience and consistent growth, ensuring job security and economic impact.  It is testament to our strategic focus and dedication that have enabled us to maintain steady progress and to positively impact the broader economy.  An unwavering commitment to excellence and adaptability within our sector has fortified our position, allowing us to navigate and continue to thrive amidst global uncertainties and increased international competition for investment.

“Furthermore, the significant level of capital investments into Ireland in the past twelve months from FDI crucially inject substantial capital into the country, stimulating growth and leading to the creation of highly skilled employment opportunities across the country.  Such investments signal strong confidence in Ireland’s economic environment, underpinning a positive business climate and emphasising the nation’s attractiveness as a prime location for global investment. Not only do these investments catalyse immediate economic benefits, but they also pave the way for sustained long-term growth and development. I want to acknowledge the contribution and commitment of our many stakeholders and partners in working with IDA Ireland to position Ireland as the premier location for FDI.

“Deepening our engagement with existing and new clients remains to the fore of our priorities.  By strengthening our relationships and understanding clients’ evolving needs, we are better equipped to deliver tailored solutions that drive mutual success across transformative areas of RD&I, sustainability, digitalisation, and talent development. This client-centric approach enhances IDA’s ability to support FDI companies in Ireland as they innovate, adapt, and grow here, against an increasingly competitive global market.  It allows us to reinforce our commitment to excellence and long-term partnership and positions us for sustained growth into the future.”

CAPTION:

Pictured (left to right): Feargal O’Rourke, Chairperson of IDA Ireland; Mary Buckley, Executive Director of IDA Ireland; Peter Burke, Minister for Enterprise, Trade and Employment; and Michael Lohan, CEO of IDA Ireland.