IDA reports 20% jump in multinational investments

Employment in Irish based multinationals reached a record 174,488 during 2014, as the IDA secured a 20 per cent boost in new investments leading to the creation of more than 15,000 jobs. However, job losses incurred during the year increased by 25 per cent, up to 7,881, and the agency warned that a poor growth outlook in Europe will remain a challenge into 2015.

According to its annual review published on Tuesday, IDA Ireland, the Government agency responsible for attracting foreign direct investment, reported a 20 per cent increase in investments up to 197 in 2014. Of these, some 88 were first time investors in Ireland, a 13 per cent increase on 2013.

Among the leading investments secured during the year were Amazon, Bristol Myers Squibb, Fidelity, LinkedIn, Ericsson and New Relic.

Overall, some 15,012 jobs were created by IDA client companies, but when job losses are taken into consideration, the net increase in employment was 7,131. This was nonentheless one of the highest net levels of job creation in a decade.

There were job gains across most sectors the IDA is focused on, but particularly in digital media/content, ICT, international financial services, life sciences and business services.

Minister for Jobs, Enterprise & Innovation, Richard Bruton TD said that multinational companies account for almost 10 per cent of the Irish workforce and are of “crucial strategic importance for the economy due to the quality of the jobs involved, their export focus and the massive knock-on impact they have on the wider economy”.

“The challenge now is to build on this performance and ensure that we create more jobs and more economic impact, as part of the drive to rebuild the economy and ensure that it is felt in people’s pockets - and I am confident that we can deliver on this in 2015 and beyond”.

Martin Shanahan, chief executive of the IDA, said that 2014 was “a very successful year”.

“While the direct jobs created are of course welcome, we are seeing noticeable gains for the wider domestic economy from the investments made by overseas companies we work with,” he said.

Regional investment

The IDA also pointed to regional investments won during the year, including announcements from Jazz Pharmaceuticals in Co Roscommon, Beckton Dickinson in Drogheda and ClearStream Technologies in Enniscorthy. Some 37 per cent of investments were outside Dublin and Cork in the year, the best performance since the launch of Horizon 2020 and up by 30 per cent on 2013.

Outlook

Looking to 2015, Mr Shanahan said he was “optimistic” about the future flow of investment.

“We are cautiously optimistic Ireland is in a good position to win significant business across a range of sectors,” he said, but noted that all business is hard-won and “we need to be vigilant and avoid complacency, particularly in the area of cost competitiveness”.

“The mistakes of the past must not be repeated. A poor growth outlook for Europe will also be a challenge. Finally, the importance of the education and training sector providing a supply of talented graduates cannot be overstated.”

The IDA is currently finalising a new five-year strategy to replace Horizon 2020 and to take the organisation into “a new phase of development”.