FOREIGN DIRECT INVESTMENT IN IRELAND: CONTRIBUTION TO ECONOMIC RECOVERY & FUTURE TRENDS Brendan McDonagh Director of Strategic Policy IDA Ireland Tuesday, June 9, 2015
IDA Ireland - Structure & Role Government Department of Enterprise, Jobs & Innovation IDA Board Irish Government Agency with a mandate to secure Foreign Direct Investment into Ireland. An autonomous body with its own Board of 12 appointed members plus IDA CEO. Overseas Offices Sector Divisions Regional Offices Targeting long-term, sustainable investments from leading corporate investors.
IDA s New Strategy 2015-2019 3
IDA Ireland Business Focus Global Business Services Technology High Value Manufacturing Research, Development & Innovation Life Sciences & Food Engineering, Industrial & Clean Industries Consumer & Business Services International Financial Services
IDA Ireland Global Office Network Austin Beiging
Current Impact of FDI 1,195 IDA Portfolio Companies: 632 from the US 124.5 22.4 billion 8.5 billion 1.4 billion Business Expenditure on R&D 174,500 124 billion
FDI led export sector plays an important role High value exporting sector was key to supporting economy through restructuring. Composition of Exports Pharma & chemicals Computer services 22% 28% Business services 12% Financial services & Insurance 10% *Med Device 6% Machinery & transport equipment 6% Food 5% 7
IDA Focus across Industry Segments Leading MNCs 2 nd Tier High Growth Companies
Client Engagement 9
Showcasing Irish Enterprise Agency Collaboration 10
Ireland s Marketing Proposition 11
Top International Ratings for Ireland 1st in the World for availability of skilled labour² 1st in the World for attitudes towards globalisation² 1st in the World for flexibility & adaptability of workforce 2 1st in the World for investment incentives 2 1st in the World for productivity & efficiency of companies 2 1st in the World for inward investment by quality and value³ 1st in the World for contribution towards humanity & the planet 4 1st in Europe for attaining third level education 5 1st in Europe for ease of paying business taxes 6 1st in Europe as most entrepreneurial country 7 1st in Western Europe for Best to Invest 8 Source: Various - detail in notes
Key Announcements 2015 Airbnb has commenced hiring for 200 new positions across all functions including customer experience, human resources, finance, trust & safety and IT. Northern Trust is to expand its operations in Limerick by creating up to 300 new jobs over the next 3 years. Viagogo intends to create 100 jobs in Limerick over the next 3 years, doubling its workforce in Ireland. Abec establishes European Headquarters and Manufacturing Centre in Cork creating 100 jobs. Apple to invest 850m in a data centre to be built in Athenry, Co. Galway. The new centre will employ 300 jobs during its multiple phases. Manufacturing of orthopaedic implants in Galway creating 200 jobs. Employment numbers growing and company moved to new offices in Dublin Amax expansion in Shannon of its Global and Logistics operations to serve EMEA and worldwide customers creating 100 jobs.
IDA Ireland Targets 2015-2019 900 Investments 80,000 New Jobs 209,000 FDI Employment by 2019 14
Winning in the Regions Targets; - A minimum increase in investment of 30% to 40% in each region outside Dublin - Dublin to achieve the same high level of investment Supported by; - 150m property investment portfolio - Aligning IDA business sectors with regions strengths - Focusing on regional urban centres which can act as key attractors of investment - Strengthening IDA s regional footprint - Working with regional stakeholders through the Regional Action Plan process 15
Sectors and Activities Pharmaceuticals Advanced Manufacturing Medical Devices Technology Financial Services New Sectors Convergence Services Engineering Food New Name Clients High-Growth Companies 16
New Sources of FDI: Convergence Areas Internet of Things software, microelectronics and networking Big Data Storage, transportation and usage of data Security Biometrics Driven by increasing globalisation in travel and data networking Smart Ageing Utilising convergent technologies from Life Sciences and Technology Portable Services Services delivered locally but managed remotely Sharing Economy Online staffing, car sharing, accommodation, finance and video/music sharing
FDI Outlook 2015 IDA is cautiously optimistic for FDI in 2015 However All investments are hard-won Increased competition internationally for FDI Ireland must retain it s cost competitiveness Talent is key Education & Training system needs to continue to be responsive and flexible Need for more investment in commercial property in certain areas Slow growth in European Economies
Docklands Foreign - Technology Direct Investment Occupiers in Ireland.
Collaboration - Team Ireland Competitiveness Pro-Business Policies 20