Six in ten (60 per cent) US multinationals plan to increase employee numbers in Ireland over the next year.
A further third (32.5 per cent) of US companies said they will maintain their current workforce levels, according to a survey carried out by the American Chamber of Commerce Ireland (AmCham) on their members.
The survey asked members what their views on Ireland as a destination for growth and further investment were. The firms that answered the survey employ around 52,000 staff across the country.
On a positive note, nine in ten survey respondents said their corporate headquarters have a positive view of Ireland as an investment location, while two-thirds (68 per cent) already have plans to invest in Ireland over the next five years.
But almost a third point to housing as the most important challenge to overcome for their company to invest and expand here. Just over a quarter (26 per cent) said cost competitiveness is the most important challenge, while 10.5 per cent said skills shortage is the number one challenge.
Other challenges include delays and complexity of the planning process, supply chain disruption, and the need to enhance R&D tax incentives.
The chief executive of the American Chamber, Paul Sweetman, said Ireland is "a strategic hub for innovation and global decision-makers in major American corporations".
When asked what the biggest risk is to continued foreign direct investment in Ireland over the next five years, members cited housing as the biggest risk at 31 per cent, ahead of public infrastructure, trade tariffs, labour costs and availability of skilled talent.
The survey also found 92.5 per cent of the respondents said they have increased or maintained investment artificial intelligence this year. Almost two-thirds (65 per cent) plan to increase investment in AI, Automation or Data Analytics Initiatives.
When asked how they expect the AI transformation to affect their business over the next five years, 82.5 per cent said they expect it to result in either increased or maintained investment.
Sweetman said almost 7.5 per cent of Ireland's entire population is employed, directly or indirectly, by US multinationals.
"On the flip side, Ireland is the sixth largest source of FDI into the US and Irish companies are employing almost as many people in the US as US companies are employing in Ireland."
"It truly is a genuine two-way economic relationship," according to Sweetman.
He said while the geopolitical backdrop of trade, tariffs and uncertainty are "unquestionably causing challenges for our members."
He added that AmCham sees "a real and emerging optimism that the business community is ready to get moving through accelerating innovative projects and strategic investments".
"The single biggest factor that will impact Ireland’s long-term growth will be our own national competitiveness, a factor wholly within our control."
(Pic: Getty Images)
