Ireland can reduce its concentration and reliance on US multinationals by increasing economic relationships with Canadian firms, the chairwoman of the Ireland Canada Business Association (ICBA) said.
Deirdre Giblin said the organisation’s recent economic report highlighted the over-reliance Ireland has on US firms. Speaking on the results of a business survey to mark Canada Day, Ms Giblin said US foreign direct investment is very valuable and must continue but that Ireland still needs to diversify
“By continuing to build the economic and business relationship between Ireland and Canada, we can reduce this concentration risk and grow our trading relationship,” she said.
The ICBA also released the results of a survey of its members which shows Canadian multinationals based here say the cost of doing business here is the main risk factor for their future.
Canadian companies operating in Ireland include Irish Life, Air Canada, TD Bank, Irving Oil, and Brookfield Asset Management which employ more than 15,000 people directly.
The survey business operating costs and the cost of labour were listed by 90% as a significant risk, followed by staff recruitment (37%), cost of raw materials (10%) and the contraction of the domestic market (10%).
However, most Canadian multinationals are continuing to invest in their workforce this year, with almost 80% planning to increase wages and 50% intending to hire more staff. The majority of respondents are also investing in upskilling and well-being of their workforce.
However, the cost of doing so is becoming increasingly prohibitive, particularly as businesses are, at the same time, trying to prepare for the introduction of new rules and regulations such as CSRD and pension auto-enrolment.”
Connectivity remains a key issue for the firms, with 90% reporting increased or similar levels of business travel in 2024. Almost three-quarters of respondents do not support the capping of passenger numbers at Dublin airport.
The ICBA said the move threatens to negatively impact valuable tourism from Canada and ease of business travel.