New figures from IDA Ireland today show that approvals for new investment and job creation by foreign multinationals in Ireland reached record levels in the first half of the year.
The news comes as Outward Investors announced that CEO Martin Shanahan will step down in the next few months.
IDA's mid-year results showed 155 additional investments were pledged between January and the end of June this year, up 9% from the same period last year and 10% above the pre-pandemic record in 2019.
Of these, 73 were from new-named companies doing business in Ireland for the first time, and a similar number located in remote parts of the country.
The companies approved the creation of 18,000 new jobs, a 44% increase from the first half of 2021 and a third higher than the pre-pandemic period.
"Amid the global pandemic, Brexit, considerable global geopolitical uncertainty, inflationary pressures, supply chain challenges, climate change and energy issues and the Russian invasion of Ukraine since the beginning of the year," IDA CEO Martin Shanahan said.
"It shows the staying power and strength of the FDI (foreign direct investment) industry, with 155 investments approved so far this year compared to 142 for the same period in 2021," Mr Shanahan said.
"The associated employment potential rose significantly to over 18,000, compared to over 12,530 in the first half of 2021," he added.
However, the Irish Development Association warned that global foreign direct investment had stalled in the first three months of the year due to the Russian invasion of Ukraine, inflation and other developments.
Still, the agency said the outlook for Ireland in the July-December period remained relatively positive.
"Despite the improved global outlook, a Covid-19 recovery, high risks and uncertainty in global markets remain a threat," Mr Shanahan said.
"Vulnerable markets, the future trajectory of the Russia-Ukraine war, inflation and monetary policy, continued disruptions to global supply chains, UK-EU tensions and geopolitical developments are increasing uncertainty in the global FDI environment," he warned.
He added that while Ireland's value proposition as a place to do business remained compelling, future success would depend on an increase in the economy's "carrying capacity".
Mr Shanahan highlighted key areas including planning, housing, energy, water and wider infrastructure, as well as talent availability and cost management, as important factors to focus on.
Tánaiste and Enterprise, Trade and Employment Minister Leo Varadkar described IDA's first-half results as unbelievable given what has happened in recent years.
"Given everything that's happened over the past few years, it's really remarkable. It shows no signs of slowing down," Mr Varadkar said.
"We should never forget that when the pandemic hit, the jobs and income created by multinational corporations helped us get out of the recession and now gives us the financial firepower to ease the cost of living crisis and avoid it," he said.
One of the biggest investments announced in the first half of the year was 12 billion euros from Intel to accommodate 1,300 employees in Apple's new campus building in Cork and provide 1,000 new jobs at TikTok and Workday.
Other investments include Merck in Cork, Citi in Dublin, MarketStar in Dublin, Eli Lilly in Limerick, Boston Scientific in Galway, Analog Devices in Limerick, VMware in Dublin, Janssen in Cork, AstraZeneca in Dublin, Ultra Clean Holdings in Cavan, Johnson & Johnson Galway and Johnston in Limerick, Okta in Dublin, Three Ireland in Limerick, Remitly Global in Cork, Galway Signify Health in Dublin, Udemy in Dublin, Supermetrics in Dublin, Gong in Dublin, Waystone in Cashel, Horizon Therapeutics in Dublin and Watford, Legato Health in Limerick, MGS in Kildare Manufacturing, Amcor in Sligo, Concentrix and Zinkworks in Letterkenny, Biometrics in Galway, Advantio in Sligo, Du Point in Atheron and Nikon Precision Europe in Kildare
IDA also released its 2021 annual report today, which showed that foreign direct investment contributed 72% of export sales, 70% of corporate taxes, and a total of 27.9 billion euros in direct expenditure on wages, materials and services.
Separately, IDA Ireland said Mr Shanahan had informed the board of his intention to step down as chief executive on a date agreed early next year.
He has held this role since 2014 and has guided the organisation and Ireland's inward investment strategy during the economic recovery, Brexit, corporate tax changes, the pandemic and other challenges.
IDA said it would begin searching for a replacement for Mr Shanahan in due course.
Chairman Frank Ryan paid tribute to Mr. Shanahan for his outstanding service to IDA and the country.
“Since taking office in 2014, during Martin’s tenure, the number of multinationals in Ireland has increased from 1,098 to 1,691 (a 54% increase) and the number of direct jobs in the IDA client portfolio has increased from 161,112 to 275,384 (an increase of 275,384). 71%), and a significant increase in the economic contribution of foreign direct investment to Ireland," Mr Ryan said.
Mr. Shanahan said it has been a great privilege to lead the organization that has been transforming itself for over 7 years.
"I hope I've added something to this history during this time," he said.
"I look forward to participating in new opportunities in due course," he added.
Martin Shanahan has said now is the right time for him to step down as IDA's chief executive and hand over the baton to new leadership.
In an interview with News at One, Mr. Shanahan said the world was changing, but IDA weathered all these storms
He said the agency has been looking at the strategy, which will take place by the end of this year or early next year.
That partly influenced his decision to step down, so the new CEO put his stamp on the organization.
Mr Shanahan said the Irish offering appeared to be very positive in the eyes of investors, but added that it was a very competitive environment and there were a number of economic headwinds.
Despite inflation, rising interest rates, supply chain shortages and geopolitical issues, the stability and consistency that Ireland offers are being appreciated by investors.He says.
Regarding work in these regions, he said the country is in much better shape than it was when he took the CEO role eight years ago, but there is still work to be done in this regard.
He said he would still like to see more investment in some counties, but added that the dramatic shift in investment in land and real estate solutions by regional investors has helped drive conversations with investors.
He said IDA had already surpassed its target of 400 investments by 2024.
