While the track record of US investment into Ireland is well known, during his visit to the Oval Office in March, Taoiseach Micheál Martin took the opportunity to remind his hosts about the scale of Irish investment in the United States. The Republic now ranks as the sixth-largest investor in the US, with more than 700 Irish companies employing more than 200,000 people across all 50 states.
This investment hasn’t happened overnight. Through a combination of acquisitions and organic growth, big Irish companies have been establishing themselves in the US for many decades. Smurfit (1974), CRH (1978) and Kerry Foods (1986), were among the early trailblazers. Other companies with major established operations in the US include food companies Glanbia and Ornua, building materials company Kingspan and heating appliances company Glen Dimplex.
In recent years, Irish tech firms have beaten a path to the US, with notable investors including Stripe, Globoforce, Openet, Fineos, AMCS, Capella and Tines, among a host of others. Outside of the tech sector, forecourt retailer Applegreen is now a huge investor in the US, with more than 120 outlets.
Ireland and the US enjoy a unique bond rooted in a shared language, deep cultural and historical connections and a similar legal system, says Simon MacAllister, EY Ireland partner and co-head of geopolitical strategy and corporate finance.
“These commonalities foster trust and ease of doing business, making Ireland a natural partner for US firms seeking an international base and the US is an ideal location for Irish entrepreneurs seeking to grow their businesses. The result is a dynamic channel of capital, innovation, and ideas flowing in both directions,” he notes.
Up to 60 Irish firms set up operations in the US every year. While the attractions for tech companies of moving to the US are obvious, among the drivers for established Irish firms are the relationships they have developed with US multinational companies over many decades.
Building firm Sisk is one example. Speaking about its plans to move into the US, Donal McCarthy, the company’s chief operating officer for data centres, life sciences and technology, says: “Sisk has worked with US multinational companies for over 40 years across the key sectors of data centres, life sciences and technology.
“We are successfully building production and research facilities for data, pharma, medical devices, biotech and semiconductor companies, many of which are US-based multinationals, and they have helped us grow our business and expertise.
“We have built long-standing relationships and partnerships with clients and our supply chain, and now one of the things we are doing is looking at how we can move with some of those clients into the US – their home market – and deliver the quality of service, value and expertise they have come to expect in Europe in the US.
“There is no doubt that part of the reason we can do this is based on our track record with US multinationals in Ireland, the UK and Europe where we have grown with them and understand how they operate, their culture and approach.”
Aidan Meagher, EY Ireland tax partner and co-head of geopolitical strategy, agrees that the US-Ireland trade relationship has deep roots, shaped as it is by a shared history and a vast Irish diaspora that has fostered enduring ties for centuries.
“Since the 1950s, Ireland has served as a strategic base for US companies, and over time, Ireland has transitioned from a manufacturing and primary production base, to a strategically significant location for high-value sectors like pharmaceuticals, life sciences, advanced manufacturing, technology and financial services. Our English-speaking, common law framework, highly educated workforce and positioning within the European Union, as well as the stable, business-friendly environment, make it an ideal international or EU hub.
“Importantly, this is not a one-way street. Ireland is now the sixth-largest investor in the US and many of America’s most iconic companies have been founded or led by Irish emigrants, a trend which continues right up to today.”
Nonetheless, the era of globalisation, of which Ireland as a small open economy has been a significant beneficiary, is now shifting, he says, and recent geopolitical developments challenge the open, interconnected trade model of recent decades.
“To continue succeeding, Ireland must remain agile, continuing to attract new investment by focusing on its competitiveness and the investment in critical infrastructure, invest in new trade routes, and reduce our reliance on FDI by strengthening our indigenous Irish companies, whilst continuing to leverage our transatlantic ties in adapting to a world where geopolitical uncertainty is now the constant,” says Meagher.
