What’s not to like about a regional location? Lower costs, enhanced quality of life, and better housing availability are just some of the advantages when compared to the capital city. It’s little wonder that 52 per cent of all multinational investment went to regional locations in 2022.
“Regional locations in Ireland continue to be very attractive for US multinationals, as they provide access to a talented workforce, often with specialised skills and competencies,” says Cian Kelliher, management consulting partner with KPMG in Ireland.
“The availability of skilled talent is crucial for multinational companies seeking to either expand or establish a presence. Additionally, regional locations offer favourable connectivity, allowing businesses to benefit from efficient transport links and proximity to markets.
“The quality of life in these areas is attractive, with a desirable work-life balance and access to natural beauty, amenities, and vibrant communities. In addition, regional locations often provide cost advantages, such as affordable commercial premises and operating expenses.”
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Chris Collins, country president of Schneider Electric Ireland, adds the education system, connectivity, and sustainability to the list.
“With a strong network of technological universities across Ireland, there is a skilled workforce in development in these regions,” Collins says.
“You’ll see in areas such as Cork and Galway that there is a greater focus on industrial and manufacturing related degrees than you would find in Dublin, which has proven to be a significant attraction for investors.”
Collins believes regional Ireland’s global positioning has proved to be an asset when attracting US multinationals.
“Regional airports provide easy access both internally and internationally, with Shannon being a key airport for transport to the US specifically. Furthermore, with Ireland being an EU country, there is greater access to a network of skilled workers, able to relocate.
“Lastly, Ireland’s plans to become carbon neutral by 2050, especially in data centres, make it an even more exciting place for technology and pharmaceutical companies to relocate. This would help organisations reduce their energy consumption and become more energy efficient, while also positioning them as leaders in the green economy.”
Deloitte corporate and international tax partner Anthony O’Halloran also believes connectivity is important. As well as international airports, he notes, “Cork and Foynes ports are also of strategic importance for imports and exports.”
Employee wellbeing is another factor, according to O’Halloran. “As companies increasingly embrace hybrid and remote working, they want to ensure that their people are located in locations that meet their employee’s expectations of work and life,” he says.
“Regional locations offer so much from culture, the arts, music to windsurfing, and coupled with people’s desire for a place they can call home, this makes the regions a compelling offering.”
Proximity enables close academic engagement with third level institutes in the regions, which allows multinationals to ensure that they are fostering graduates with the skills of tomorrow.
O’Hallaron points to the University of Limerick launching Ireland’s first master’s degree in artificial intelligence in response to industry demand as an example of this engagement.
Proactive promotion
The regions have also benefited from proactive promotion to potential inward investors, according Martin Shanahan, partner and head of industry and FDI with Grant Thornton.
“A key focus of Ireland’s National Development Plan is to achieve greater regional balance,” Shanahan explains.
“In line with this, IDA Ireland has, since 2014, published regional targets for investment and delivered on them.
“IDA invests in property and infrastructure development to ensure the availability of utility intensive sites and turnkey office and manufacturing property solutions. IDA Ireland’s direct supports around employment and capital investments are focused on regional locations.”
Regional locations are attractive to companies for multiple reasons. “Often, they can tap into a talent pool in a less crowded market and are able to become employers of choice in a smaller location,” Shanahan says.
“Those locations that offer attractive life-work balance are attractive because employers are trying to attract talent and employees are increasingly discerning about where they live and work.
“From an investor perspective, investing in a location outside of the major cities offers potential cost savings and makes most sense for companies involved in manufacturing.”
Skillnet Ireland helps industry with access to talent. “We work directly with companies in every region, and we have a high level of collaboration with third level institutions and the research centres hosted by them,” says Skillnet Ireland chief strategy officer Mark Jordan. “Our federated model with 70 Skillnet business networks located around the country facilitates that engagement. It’s not just about training courses, it’s about engagement with companies on their commercial objectives and then looking at their talent needs in that context. We have also co-created a Strategic Talent Development Programme with the IDA aimed at supporting FDI companies who are looking to attract and retain talent to drive business growth.”
Overcoming barriers
There are some challenges associated with a regional location, of course. “Dublin has attracted 50.2 per cent of Ireland’s FDI projects and 47.7 per cent of the jobs created by foreign investors over the past two decades, which stands among the highest FDI concentrations of Europe’s large economies,” says Kelliher.
“With this historic firm density in the capital, regional areas will continue to require support in attracting investment and tackling some of the key challenges associated with regional locations such as, for example, building and maintaining resilient and agile supply chains.”
There are also some barriers to establishing in regional locations. “Investors who may have established operations in Ireland previously often gravitate towards locations that they are familiar with, and this can be challenging when trying to promote regional investments,” O’Halloran says.
“Investors looking to establish operations under time pressure and may not take the time to consider regional locations and the benefits associated, from both a company and employee perspective.
“Where multinational companies are looking to move key people within their organisation to Ireland, it may be more difficult to get them to move to locations outside Dublin due to personal preferences.”
Julie Galbraith, employment partner at Eversheds Sutherland, says that when it comes to regional locations, the benefits can outweigh the challenges. She notes a lower cost of living, less traffic and more options when it comes to housing.
“Dublin certainly has more resources and opportunities, but regional locations aren’t too far behind,” Galbraith says.
“The IDA supports regional development by encouraging businesses to establish operations in regional areas. This creates jobs and drives economic growth. They certainly encourage investment outside of Dublin which is welcome.
“Coming from a country town in Ireland, we can’t underestimate the beauty of our coastal offering supported by an educated and talented workforce.”
Regional locations need to promote themselves, according to Shanahan.
“It is important that locations continue to ‘place make’. Investors and their potential employees are looking at all aspects of a location when deciding to locate investment or work in a particular place,” he says.
“It is particularly important that stakeholders at a local level work together and that their efforts are aligned with Government and national agencies. This helps to build a compelling rounded offering.”