Over 90 percent of AmCham members plan to increase or maintain employee numbers over the next 12 months, according to the latest AmCham FDI Insights survey.
The survey found that 60 percent of respondents plan to increase the employee headcount at their Irish operations over the next 12 months, while a further 32.5 percent said they will maintain their current employee numbers.
9 in 10 survey respondents also say their corporate headquarters have a positive view of Ireland as an investment location, and 68 percent said their corporate headquarters already have plans to invest in Ireland over the next 5 years.
When it came to the challenges impacting AmCham member companies, 32 percent said housing is the most important challenge for Ireland to overcome for their company to invest and expand here. 26 percent said cost competitiveness is the most important challenge while 10.5 percent said skills shortage was the number one challenge. Other challenges that emerged from the survey were delays and complexity of the planning process, supply chain disruption and the need to enhance R&D tax incentives.
Looking to the future and ensuring Ireland remains a destination of choice for business and talent, 100 percent of respondents said Ireland’s cost competitiveness is important to maintaining FDI employment in Ireland, meanwhile, 90 percent of respondents said reform of the planning system to provide certainty of process and timeframe is important for business growth and expansion in Ireland.
When asked what the biggest risk is to continued FDI in Ireland over the next 5 years, housing was cited as the biggest risk at 31 percent, ahead of public infrastructure, trade tariffs, labour costs and availability of skilled talent.
On investment in AI and new technologies, 92.5 percent of respondents said they have increased or maintained AI investment this year, while 65 percent said they plan to increase investment in AI, Automation or Data Analytics Initiatives. When asked how they expect the A.I. transformation to affect their organisation over the next 5 years, 82.5 percent said they expect it to result in either increased or maintained investment.
Apart from investment in AI, American Chamber member companies are planning to increase investment across a wide range of areas over the next 12 months, with 60 percent saying they will invest in digital transformation/technology upgrades, 55 percent in employee upskilling / training & development, 48 percent in talent acquisition/increasing headcount, 38 percent in R&D and 32 percent in sustainability/ESG initiatives.
When asked what would be most beneficial to enhancing Ireland’s R&D ecosystem, 49 percent of respondents said enhancement of the R&D tax credit, 22 percent said improved collaboration between industry and academic institution, and 11 percent said greater availability of PhD researchers and high-level research talent and increase incentives for private sector research respectively.
Regarding the biggest opportunity for their business in Ireland in the next 5 years, 40 percent said it will be the adoption of AI or emerging technologies, 20 percent said the development of new products/services and 20 percent said cost optimisation and efficiency.