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CSO statistical release, , 11am

Outward Foreign Affiliates Statistics

2018

Turnover and number of persons engaged in Irish-owned foreign affiliates, 2016 - 2018
 Turnover (€millions)% Number of persons engaged%
 201612017120182018 20162017120182018
United States85,06288,63488,55738.1 225,735228,433219,11322.0
United Kingdom41,42342,64144,57819.2 106,916109,100118,09411.8
Germany8,8509,39210,1704.4 27,37929,29229,7923.0
France7,9089,2529,4814.1 24,80225,54126,5662.7
Netherlands6,6346,7537,2193.1 16,79817,40319,6962.0
Other countries66,86770,97172,55431.2 530,539564,115584,84058.6
All countries216,744227,643232,559100.0 932,169973,884998,101100.0
1 Outward Foreign Affiliates Statistics were revised for 2016 and 2017

United States and United Kingdom dominate turnover in Irish multinationals abroad

Figure 1: Turnover in Irish-owned foreign affiliates, 2018
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In 2018, Irish multinationals abroad had turnover in excess of €232 billion, with US and UK affiliates accounting for 57.3% of this. There were over 998,000 persons employed in Irish multinationals abroad, 33.8% of whom were in the US and the UK.

The turnover in Irish affiliates in the UK increased by 4.5% from 2017 to 2018, while employment increased by 8,994 or 8.2%. The turnover in Irish affiliates in the US decreased by 0.1% with employment also decreasing by 9,320 or 4.1%. Irish affiliates in Germany, France and the Netherlands together account for 11.6% of turnover from Irish multinationals abroad in 2018 and affiliates in these three countries accounted for 76,054 persons employed or 7.6%. See Figures 1 & 2 and Headline table.

Outward Foreign Affiliates Statistics (OFATS) cover the activities of Irish multinationals abroad. The purpose of the survey is to allow analysis of the sectoral and geographical composition of the affiliates controlled by Irish multinationals. Care should be taken when analysing the Outward Foreign Affiliates Statistics as the register of Irish multinationals abroad can be subject to significant change in the short term.

An enterprise is deemed to be Irish owned if over 50% of its controlling interest is in Ireland. The population of foreign affiliates is subject to fluctuation based on international market conditions and the buying and selling of affiliates by Irish multinationals. Any enterprise that redomiciles their controlling operations to Ireland will have a bearing on the results, provided the above criteria are satisfied, as it would from that point be considered an Irish enterprise.

Please click the following link to access details of the methodology used:

 Compiling Foreign Affiliates Statistics (FATS) 

In terms of employment in Irish multinationals abroad by continent, Europe, Asia and America each accounted for approximately a third of the total, with employment in the remaining regions amounting to 2%. See Figure 3.

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Persons engaged
Netherlands2
United
Kingdom
11.8
United
States
22
Germany3
France2.7
Other
countries
58.6

Figure 3: Employment in Irish affiliates abroad, 2018

Figure 3: Employment in Irish affiliates abroad, 2018

Spain and Germany show highest percentage growth in turnover of Irish affiliates

Aside from the UK and the US, a number of other countries had a significant contribution to turnover and employment in 2018, with employment of over 38,000 in China, almost 30,000 in Germany, over 26,000 in France and 23,851 in Brazil. Employment levels increased in the majority of selected countries in Figure 4 below, except for Brazil and Japan which had slight decreases of 0.5% and 2.0% respectively. Irish affiliates in Japan also showed a decrease in turnover of 3.7% but conversely, turnover in Brazil increased by 4.7%.

In terms of turnover, affiliates in Germany produced just over €10 billion while the Netherlands produced over €7.2 billion. Irish affiliates in Spain had an increase in turnover of 15.0%. Germany had the second largest increase in turnover at 8.3% while the Netherlands increased by 6.9%. See Figures 4 & 5 and Tables 1 & 2.

X-axis label201620172018
Germany273792929229972
Netherlands167981740319696
France248022554126566
Poland112741208713416
Spain192662045721560
Italy178881937420484
Brazil219652397123851
Canada150071578216178
China376283720338488
Japan153561655416215
X-axis label201620172018
Germany8.859.39210.17
Netherlands6.6346.7537.219
France7.9089.2529.481
Poland2.4532.4992.486
Spain3.9113.9514.543
Italy3.6154.0014.054
Brazil3.6673.9164.101
Canada4.7615.6075.602
China3.9223.9614.181
Japan5.2025.7355.525

Services sector has highest employment abroad in Irish multinationals

Services, which includes Distribution, was the dominant sector for employment in Irish affiliates abroad in 2018 with 77.2% of total persons engaged. Manufacturing affiliates accounted for 22.1% of total foreign affiliate employment while other Industrial and Construction sectors employed just 0.3% each. There is a similar picture when looking at turnover, where 73.1% of turnover was generated in Services and 25.6% in Manufacturing. See Figures 6 & 7 and Tables 3 & 4.

More turnover generated in Services activities than any other sector by Irish affiliates abroad

When looking at the sectoral composition of turnover generated by Irish affiliates abroad, the Services sector (excluding Distribution) held the largest share with 41.4% of the overall figure, followed by Distribution and Manufacturing with 31.7% and 25.6% respectively. The rest of sectoral activities together accounted for just 1.3% of total turnover. See Figure 8.

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Persons engaged
Construction0.3
Manufacturing22.1
Services77.2
Other
industrial
0.3
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Turnover
Construction0.7
Manufacturing25.6
Services73.1
Other
industrial
0.6
Turnover
Services41.4
Distribution31.7
Manufacturing25.6
Construction0.7
Other Industrial0.6

European Comparison

European multinational employment outside EU dominated by affiliates of UK, France and Germany

The number of persons engaged in Irish-owned foreign affiliates outside the EU was almost 700,000 in 2017. This represented over 4% of the 15.8 million persons employed by European multinationals outside the EU. The largest contributors to this employment were French-owned foreign affiliates at 24.4%, German-owned foreign affiliates at 20.3%, and British-owned foreign affiliates at 18.8%. See Figure 9.

Germany still the largest contributor to European multinational turnover outside the EU

The turnover of Irish-owned foreign affiliates outside the EU was over €136 billion in 2017. This represented 3.1% of the €4,460 billion turnover of European multinationals outside the EU. The largest contributors to turnover were German-owned foreign affiliates at 27.9%, French-owned foreign affiliates at 18.3%, followed by British and Dutch-owned foreign affiliates at 14.3% and 13.4% respectively. See Figure 10.

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% Employment
Irish4.4
Dutch5.1
Italian6.8
Other20.3
German20.3
French24.4
British18.8

Irish multinational Services employment almost 70% higher than EU average

In the Services sector, Irish-owned affiliates located outside of Europe employed 566,039 people, almost 70% higher than the EU average of 334,695. See Figure 11.

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% Employment
Irish3.1
Dutch13.4
Italian6.2
Other17
German27.9
French18.3
British14.3
X-axis labelEU28 averageIrish owned outside the EU
2017334695566039

Average turnover in the Services sector for EU-owned multinationals' affiliates located outside of Europe was €80 billion. Irish-owned affiliates located outside of Europe had a Services sector turnover of €104 billion. See Figure 12.

X-axis labelEU28 averageIrish owned outside the EU
201780325104181
Table 1 Persons engaged in Irish-owned foreign affiliates by country, 2017 - 2018
 201712018% Change
Germany29,29229,9722.3
Netherlands17,40319,69613.2
France25,54126,5664.0
Poland12,08713,41611.0
Spain20,45721,5605.4
Japan16,55416,215-2.0
Canada15,78216,1782.5
Italy19,37420,4845.7
China37,20338,4883.5
Brazil23,97123,851-0.5
US228,433219,113-4.1
UK109,100118,0948.2
Other Countries418,687434,4683.8
Total973,884998,1012.5
1 Outward Foreign Affiliates Statistics were revised for 2017
Table 2 Turnover in Irish-owned foreign affiliates by country, 2017 - 2018
 201712018 
 €m€m% Change
Germany9,39210,1708.3
Netherlands6,7537,2196.9
France9,2529,4812.5
Poland2,4992,486-0.5
Spain3,9514,54315.0
Japan5,7355,525-3.7
Canada5,6075,602-0.1
Italy4,0014,0541.3
China3,9614,1815.6
Brazil3,9164,1014.7
US88,63488,557-0.1
UK42,64144,5784.5
Other Countries41,30142,0621.8
Total227,643232,5592.2
1 Outward Foreign Affiliates Statistics were revised for 2017
Table 3 Persons engaged in Irish-owned foreign affiliates by sector, 2012 - 2018
 20122013201420152016201712018
Manufacturing123,857142,420152,584158,013201,810192,520221,037
Other industrial2,3954,7154,2874,4004,1273,2533,382
Construction1,1188826231,3531,2492,0603,309
Services560,506580,500588,279614,736724,983776,051770,373
All sectors687,876728,517745,773778,502932,169973,884998,101
1 Outward Foreign Affiliates Statistics were revised for 2017
Table 4 Turnover in Irish-owned foreign affiliates by sector, 2012 - 2018
 2012120131201412015120161201712018
 €m€m€m€m€m€m€m
Manufacturing31,63638,03437,89139,48354,28252,13459,472
Other industrial1,1441,3871,3491,4181,6151,1361,354
Construction5634853641,0747421,4111,675
Services95,658111,371112,932127,462160,105172,962170,058
All sectors129,001151,277152,536169,437216,744227,643232,559
1 Outward Foreign Affiliates Statistics were revised for 2012 - 2017

Background Notes

Outward Foreign Affiliates Statistics (OFATS)

Target population

The target population for outward FATS comprises all foreign-based affiliates that are controlled by an institutional unit resident in the compiling country. The units that complete the CSO Outward FATS survey are resident institutional units i.e. Irish multinationals.  The Outward FATS survey requires the CSO to survey domestic-based Irish multinationals and request information about their foreign-based affiliates.

Data source

The CSO carry out a survey to capture the outward FATS information.  On the survey form respondents are required to complete a list of foreign affiliates that are under the control of the Irish multinational.

The required variables for each foreign affiliate are as follows:

•             Name of foreign affiliate

•             Country in which foreign affiliate is located

•             Description of the activity of the foreign affiliate (which is coded to NACE Rev. 2 activity codes)                         

•             Shares in registered capital of foreign affiliate (only a shareholding of 51% or greater in a foreign affiliate is taken for compilation purposes).  

•             Turnover

•             Number of persons engaged

Main Concepts and Definitions

1.  Institutional unit

An institutional unit is an elementary economic decision-making centre characterised by uniformity of behaviour and decision-making autonomy in the exercise of its principal function.  A unit is regarded as constituting an institutional unit if it has decision-making autonomy in respect of its principal function and keeps a complete set of accounts.

2.  Foreign Affiliate

A foreign affiliate is enterprise not resident in the compiling country over which an institutional unit resident in the compiling country has control (Outward FATS).

3.  Control

The concept of control is used for the breakdown of the FATS variables.  Control means the ability to determine the general policy of an enterprise by choosing appropriate directors, if necessary.  In this context, enterprise A is deemed to be controlled by an institutional unit B when B controls, whether directly or indirectly, more than half of the shareholders’ voting power or more than half of the shares.

Indirect control means that an institutional unit may have control through another affiliate which has control over enterprise A. 

Therefore, control implies the ability to determine the strategy of an enterprise, to guide its activities and to appoint a majority of directors.  In most cases, this ability can be exercised by a single investor holding a majority (more than 50 %) of the voting power or of the shares, directly or indirectly.

4.  Ultimate controlling institution (UCI)

The ultimate controlling institution (UCI) of a foreign affiliate is an institutional unit, proceeding up a foreign affiliate’s chain of control, which is not controlled by another institutional unit.  FATS data are compiled according to the UCI concept.  The crucial characteristic of a UCI is that it should effectively control and manage the group, i.e. take global strategic decisions.

Therefore, in the case of Ireland, Outward FATS describes the activities of affiliates abroad where the UCI is an Irish resident institutional unit. 

5.  Residency

The place of residency of an UCI is the country of registration of the UCI in the case of legal entities and the country of residence in the case of natural persons acting as UCI.  Residency is often but not always the nationality of the UCI.

Geographical Breakdown

The Outward FATS variables are broken down by the resident country of the foreign affiliates.  These countries have been amalgamated into geographical aggregates which are listed separately.

Activity Breakdown

The NACE Rev. 2 sectors covered by the Outward FATS data are as follows:

A - Agriculture, forestry and fishing

B - Mining and quarrying

C - Manufacturing

D - Electricity, gas, steam and air conditioning supply

E - Water supply; sewerage, waste management and remediation activities

F - Construction

G - Wholesale and retail trade; repair of motor vehicles and motorcycles

H - Transportation and storage

I - Accommodation and food service activities

J - Information and communication

K - Financial and insurance activities

L - Real estate activities

M - Professional, scientific and technical activities

N - Administrative and support service activities

P - Education

Q - Human health and social work activities

R - Arts, entertainment and recreation

S - Other service activities

Please click the following link to access details of the methodology used:

Compiling Foreign Affiliates Statistics (FATS)

 

 

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