IDA Ireland has reported strong annual results for 2023 showing an increased number of investments, steady levels of employment across the FDI (Foreign Direct Investment) sector, robust regional investment and strong performance across key transformation areas of research development and innovation, sustainability, digitalisation and talent development.
The organisation reported an increase in the number of investments into Ireland during 2023 totalling 248 and which are expected to deliver almost 19,000 jobs to the economy. A third of investments won, 83, were greenfield or first-time investments.
IDA Ireland has over 1,800 client companies within its portfolio employing 300,583 in 2023, holding above 300,000 jobs for the second consecutive year. Accounting for 11.3% of national employment, this represents a slight decrease in client employment of just 0.3%, despite a slowdown in Information and Communications Services (down 2.9%). Job growth was recorded across all other sectors with Modern Manufacturing up 1.8%, Traditional Manufacturing up 0.2% and in Business, Financial and Other Services up 0.8%. This underscores the importance of diversification across knowledge intensive and growth sectors to enable continued enterprise and economic impact.
Balanced regional development is a priority for IDA Ireland and the survey’s results represent this focus and commitment. There were 132 investments secured across regional locations during 2023, representing 54% of the overall figure. The total number of regional jobs now stands at 163,471. The Midlands Region saw the strongest level of growth, up 5.8%. There was growth in the Border Region (up 2.7%) and Midwest Region (up 2.6%) with the Southwest and Southeast regions up by 1.2% and 1.4% respectively. Elsewhere, the West Region was down by 1.8% whilst Dublin and the Mid East Region declined by 1.2% and 4.8% respectively.
IDA Ireland regards transformation as critical to delivering and sustaining future economic impact and prioritises areas of research and development, innovation, sustainability, digitalisation, and talent development, as client companies look to build a sustainable future. In 2023, IDA Ireland approved 25 sustainability projects focused on carbon abatement and building Ireland’s Green Economy. Over €1.4bn was committed by IDA clients on research and innovation projects during the year. Furthermore, client spend of over €77m was committed to investment in talent development.
This focus on transformation holds firm as IDA Ireland looks to the future and to continue delivering Irish economic impact. Transformation will support IDA client companies – both existing and new – as they build competitiveness, grow, and further embed themselves in Ireland. It will underpin Ireland’s platform for ongoing economic development and position the country for future growth.
Simon Coveney, Minister Enterprise Trade & Employment said, “The results announced by IDA Ireland are indicative of a resilient Ireland that, despite huge global challenges, remains an attractive destination for global companies to locate, build and grow their business. The work of IDA Ireland is pivotal to the delivery of the government’s White Paper on Enterprise and the results delivered today show an impressive, sustained performance despite challenges experienced in the global tech industry in the past 15 months. This reinforces the importance of a diversified economy across a variety of sectors.”
Michael Lohan, CEO IDA Ireland said, “With 248 investments won by IDA Ireland this year, the strength of [these] results speaks to the continued attractiveness of Ireland as a location for FDI. The results also reflect an enduring commitment amongst FDI companies, supported by IDA Ireland, who continue to show confidence in Ireland as a location in which to make complex, innovative, and impactful investments at scale.
These investments are delivering sustained levels of highly skilled employment across the country as borne out by the direct job numbers reported today of over 300,000 for the second year in a row, against a backdrop of the global tech reset and severe global headwinds such as inflation, changing industrial policy, and ongoing geopolitical disruption across the world.
In the face of these challenges, however, we have a strong platform for growth as reflected in the latest ABSEI results. Expenditure within the economy by FDI companies increased during 2022 despite the prevailing challenging conditions. Payroll was up 12% to €22.1bn, Irish services and materials spend increased by 15.7% to €13.8bn, and capital expenditure was up 49% to €15.5bn. Exports of €383.1bn represent an increase of 11.2% year on year.
IDA Ireland continues to work with our client companies to support their drive for competitiveness as they move through the twin transition. Transformation focused on research development and innovation, sustainability, digitalisation and talent development is critical to remaining competitive, reflected in our partnerships and conversations with client companies and our stakeholders.
As we move into 2024, it is important to recognise that we continue to face domestic as well as global challenges. It’s acknowledged that Ireland’s carrying capacity and infrastructural development, particularly in housing and energy supply, needs to be accelerated. Under IDA Ireland’s current strategy, Driving Recovery and Sustainable Growth 2021-2024, our focus remains on winning investment for Ireland and sustained regional development. During the next 12 months, we will be developing a new strategy to underpin Ireland’s FDI offering. Paramount to that will be the partnerships that we build with our regional and national stakeholders and client companies to support them in their growth and transformation in order to deliver jobs and broader economic benefit to Ireland.”
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