Wednesday, March 21, 2012

Why Ireland is the place to move your business

If you have some capital and want to become really competitive, here is why you should move your business or expand your operations to Ireland (other than the fact that it's a beautiful country).

1. There are plenty of English speaking workers in need of a job. So there won't be any problems recruiting.

Ireland's unemployment rate (Bloomberg)

2. And you don't have to pay them much. Particularly in comparison to some other European nations, Irish labor has become quite inexpensive.

Unit labor costs (Source: OECD, hat tip Kostas Kalevras)

3. Now if you want to make sure these employees stay with you for a long, long time, you can help them buy homes near their job. After all home prices in Ireland are becoming a great deal cheaper, at least on a relative basis. Makes for a very effective employee retention package.

Nominal declines in home prices from the peak (Source: GS)

Home price appreciation YOY (Source: GS) 

4. You can even help them get a loan, because you know they are not getting it from their local bank.

Source: Bank of Ireland 

5. Now with cheap and loyal labor, there is nothing stopping you, particularly if you have access to capital. That's because your local competition certainly has no way of getting a loan.

Loans to non-financial corporations in Ireland from Jan 11 to Jan 12 (€ million)

6. And don't worry about credit conditions improving any time soon and local competition coming back. With banks owned by the government and credit availability/liquidity tightening, your competition won't stand a chance. It won't be long before you own them.

Ireland's contribution to the Eurozone's M1 money stock from Jan 11 to Jan 12 (€ million)

So as long as you don't have to sell your products to anyone locally, Ireland is the place to be for a growing company. And by the way, your corporate tax rate will be way lower than many other places you are considering setting up shop.
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