Balanced regional development is a key priority for the Government and the IDA. More than 50 per cent of the US companies in Ireland have chosen regional locations, with those operations accounting for more than half of employment generated by US investment and significant hubs in sectors such as financial services, life sciences and ICT developing as a result.
IDA Ireland client companies employ more than 165,000 people in regional locations across Ireland. Such businesses benefit from the local ecosystem, infrastructure and talent. The agency says it is committed to further enhancing regional opportunities for clients by providing next-generation sites and building solutions.
Its latest strategic plan, Adapt Intelligently, which aims to support the creation of 75,000 new jobs over the next four years, puts a stronger than ever focus on the regions, aiming to secure 550 investments into regional locations between now and 2029.
Addressing the issues of planning and infrastructure, one of the initiatives IDA Ireland is undertaking in its regional strategy is putting in place larger-scale suitable sites that encompass property, utility and sustainable infrastructure that potential investors can use or modify easily to suit their needs. Such next-generation sites will provide clarity on infrastructure provision, costs and shorter project timelines when making major investment decisions, the agency says.
Balanced regional development is also a core pillar of Project Ireland 2040, the Government’s long-term plan development plan for the State. The plan recognises that long-term national prosperity depends on all regions – urban and rural – reaching their full potential, notes Michelle Gallagher, chief executive of Limerick Chamber.
She points to recent developments in Limerick including Eli Lilly’s €2 billion investment, expansion by Verizon and Analog’s €630 million investment in its European headquarters as significant votes of confidence in the city and the midwest region.
However, she says: “While regions like the midwest and Limerick have shown what’s possible with the right ecosystem, we cannot assume continued success without sustained state investment. Strategic funding in housing, transport, infrastructure is essential to ensure that regions can keep pace with global investor expectations.
“If we want Ireland to remain a top-tier destination for FDI, we must double down on enabling regional locations to compete – not just within Ireland, but on an international stage.”
Achieving more balanced regional outcomes is a long-standing domestic policy objective and one that international investors support, notes Fergal De Freine, EY Ireland assurance partner and head of FDI. He says EY’s research confirms that half of all FDI projects are now going to the regions, a trend set to continue, given the ongoing appetite for investment outside the capital.
“In response to this appetite, IDA Ireland’s regional strategies play an important role in promoting and encouraging this diversification. This includes sponsoring clusters – such as medical technology in the west and mid-west – to support transformation, spillovers and linkages, liaising with client companies and stakeholders to facilitate remote working, and a regional property programme,” he says.
Universities, including technological campuses, are also beacons for regional FDI, providing opportunities for research collaboration and employment paths for graduates with regional enterprises, both indigenous and multinational, he says.
The availability of talent is a key factor in all investment decisions, De Freine notes; regional locations can benefit by virtue of industry clusters and third-level institutions, both of which create a pool of prospective employees with the right experience and training. Industry clusters also encourage indigenous service providers and support the development of assets for research, development and innovation, he points out.
“Infrastructure is also important. For example, connectivity, whether by air, rail or road, is an important consideration for investors,” says De Freine. “While Ireland is a relatively small country, it is important that movement of people and goods is as frictionless as possible. In addition, the quality and choice of real estate inventory – for manufacturing, logistics, office or R&D activities – is a significant factor in the attractiveness of regions.”
Another important consideration is quality of life. “Regional locations often have a significant advantage in terms of affordability of housing and proximity to nature, which can be highly attractive for executive and expatriate positions,” says De Freine.
Liam Kenny, managing director of John Paul Construction, says FDI has helped his firm and the construction industry as a whole to become highly skilled technical contractors, capable of delivering complex projects in the life sciences, data centre and high-tech sectors, among others. The positive impacts of this have been felt throughout the regions.
“When you consider the Irish construction workforce, you’re talking about some of the most skilled people in the world. This has had two benefits. The first is that FDI clients have enjoyed consistency of delivery in Ireland and throughout the regions, resulting in greater confidence when it comes to choosing our island for investment,” says Kenny. “The second is that we, both as a business and an industry, have been able to then export our skill sets to markets where needed.”
John Paul Construction, Kenny says, has one client that it has worked with on six projects in locations throughout the country, a great example of FDI achieving balanced regional development.
“These construction projects have an immediate impact on local communities where firms like ours work with the local supply chain. More importantly these subcontractors and suppliers get exposed to international standards and can upskill in the process.”