| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : US Economy Last Updated: Jul 18, 2014 - 11:31 AM


Brookings says Irish FDI into US accounts for 141,600 jobs - Reality Check?
By Michael Hennigan, Finfacts founder and editor
Jul 17, 2014 - 8:09 AM

Email this article
 Printer friendly page

Brookings Institution, the Washington DC think-tank, gives Dublin an 8th ranking in the top global cities "sending" FDI (foreign direct investment ) to the US, which accounts for 141,600 American jobs -- the Reality Check is that this claim is mainly a fiction.

Brookings said this week: "The Irish capital region hosts the headquarters of accounting giant Accenture, medical equipment supplier Covidien, building materials conglomerate CRH, and diversified industrial companies Ingersoll-Rand and Cooper Industries, to name a few. In total, Dublin-based companies employ nearly 141,600 US workers through FDI."

Apart from CRH, the cited companies are American that have become Irish for tax purposes via what is called a tax inversion.

Finfacts: US-Ireland Tax Inversions 600,000+ staff: Kenny, Noonan met with top US corporate lawyers

Cooper Industries has already been absorbed into the much bigger Eaton Corporation of Ohio, which is now faux-Irish and Covidien will soon be part of Medtronic, as a newly minted Irish company with a payroll of 77,000.

Accenture, the US consultancy has 43,000 employed in the US.

Six of Nasdaq's 20 listed Irish companies are Irish companies.

It's even debatable if CRH, the global building materials group and one of Ireland's few authentic transnational companies of significance, should be realistically called Irish. 

CRH was formed through a merger in 1970 of two leading Irish public companies, Cement Limited (established in 1936) and Roadstone Limited (1949) and funds now own 83% of its shares with Irish funds having a 4% holding.

The rest of the shares are categorised 'Retail' but we can assume that ex-Ireland residents own at least 90% of the group.

The Americas division had 37,000 employed in 2013, mainly in the US.

The big indigenous food groups Kerry and Glanbia had global payrolls in 2013 of 24,500 and 5,200 respectively -- they do not provide geographical breakdowns of staff but a third of Kerry's €5.8bn revenues came from the Americas and half of Glanbia's sales of €3.5bn came from the US. 

Employment in Ireland is at about 2,000 of a total payroll of 76,000 and Irish revenues were €278m from a total of €18bn. 

The American Chamber of Commerce in Ireland produces an annual report [pdf], which often makes exaggerated claims based on confusing data.

The 2013 reports says Irish companies employed 136,000 in the US in 2012  and added: "Irish foreign affiliate sales in the US in 2012 estimated at $50.1bn - - were 15% larger than US imports, a healthy spread that underscores the maturity of the bi-lateral relationship."

IDA Ireland, the Irish inward investment agency, and Enda Kenny, taoiseach/ prime minister, use this misleading data as fact and last March at the annual St. Patrick Day meeting at the White House, President Obama showed that he had also bought the fairytale: "There is tremendous investment by US companies in Ireland. There's tremendous investment here in the United States by Irish companies. We're an example of the mutually beneficial trade that can take place across the Atlantic."

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

US Economy
Latest Headlines
US jobs rose by 215,000 in July; Unemployment rate stable at 5.3%
US economy grew at weak pace in Q2 2015 - Worst expansion since 1945
Decoupling of per capita GDP, productivity, private employment, and median family income in America
US economy stumbles again in 2015
Income gap highest in 30 years; No inequality rise in best-paying US firms
Fed minutes raise doubts about fragility of US recovery
Senate Democrats block trade deal authority for Obama
Five firms held 25% of top US non-financial companies cash pile in 2014
US added 223,000 jobs in April; Broad jobless rate at 10.8%
Investment struggles as dividends/ share buybacks at top US firms to exceed $1tn in 2015
US economic growth plunged in Q1 2015
Why the Fed may (almost) never raise interest rates
US jobless rate falls to 5.5%; Broad rate at 11%; Participation rate at 1978 level
US added 257,000 jobs in January; Broad jobless rate at 11.3%
US economy will soon see best years in a decade
US annualised GDP slowed sharply in final quarter 2014
US budget deficit to fall to 2.6% of GDP in 2015
US added 252,000 jobs in December; Jobless rate falls to 5.6%
US adds 321,000 jobs in November; Private sector adds 10.9m jobs in 57 months of growth
US manufacturing slowed in November
US retail spending over Thanksgiving weekend fell 11%
US consumer spending weak in October; Business investment fell again
US third-quarter GDP revised up to 3.9% annualised rate
After destroying banking secrecy US helps Swiss exporters
US oil imports from OPEC cartel at 30-year low
Tax-inverted "Irish" firm Actavis agrees to buy US Botox maker Allergan
US nonfarm payroll employment rose 214,000 in October' Jobless @ 6-year low
Swiss bankers await fallout of US tax evasion acquittal
Two PMI reports give contrasting trends on US manufacturing
US GDP increased at annualised 3.5% in third quarter of 2014
US city home price growth slowed again in August; Consumer confidence rebounded in September
US new orders for manufactured durable goods fell again in September
Loans to buy US shares at record highs
Global markets slide; US industrial production best in 3 years & jobless claims in 14-year low
US federal budget deficit dips to 2.9% of GDP in fiscal year 2014
US added 248,000 jobs in September; Jobless rate falls to 5.9%
US set to become world’s leading liquid petroleum producer again
Obama issues new rules to combat tax inversions
US Securities and Exchange Commission to pay $30m award to foreign whistleblower
Typical American household income in 2013 was below the 1989 level