Invest in A Guide for Irish Companies

#AmCham4Growth ABOUT CALIFORNIA CHAMBER CALIFORNIA GOVERNOR’S OFFICE OF OF COMMERCE BUSINESS AND ECONOMIC DEVELOPMENT

The California Chamber of Commerce is the The Governor’s Office of Business and AmCham Emerging Our team is here to largest, broad-based business advocate to Economic Development (GO-Biz) serves government in California, working at the state as the State of California’s leader for job and federal levels to influence government growth, economic development, and business FDI Programme support yours actions affecting all California business. As assistance efforts. Our teams are comprised a not-for-profit, we leverage our front-line of experts that span industries, geographies The Chamber’s Emerging FDI programme is aimed at If you work for an Irish company and are planning to expand knowledge of laws and regulations to provide and business backgrounds. supporting the Irish companies choosing to enter the US into the US market- this guide is here to help! We have drawn affordable and easy-to-use compliance market. from the insight and experiences of Irish companies that have products and services. successfully expanding into and across the US. They have The Chamber draws from the expertise of our established CONTACT US shared with us things that they wished they had known from working groups and Transatlantic networks, offering best the start, and their key tips for beginning the journey. CONTACT US practice sharing and peer support. This working group meets 877-345-4633 every 6-8 weeks. If you would like to learn more please Our team, along with our partners in Enterprise and PHONE (916) 444-6670 [email protected] contact Stephen Hopkins – [email protected] Select USA will make every effort to support yours- we wish you every success! FAX (916) 325-1284 California Chamber of Commerce MORE INFORMATION ADDRESS 1215 K Street, Suite 1400 In association with GO-Biz business.ca.gov Sacramento, CA 95814 Business Assistance businessportal.ca.gov WEBSITE www.calchamber.com/Ireland Permit Assistance calgold.ca.gov

2 3 CALIFORNIA PRESENT IN IRELAND

California based companies with a presence in Ireland include: Irish- California Trade Relations Figure 1** According to the Irish Consul General in (February 2019 NAICS Total All Merchandise 2019), Irish companies employ approximately 100,000 Exports from California to Ireland in the US, and of those about ten percent or 10,000 jobs are in California.* Approximately 140 Irish companies now are established in the Western US, primarily in California. And CA-Irish ties run deep, with ten percent of the Bay Area identifying as Irish Americans.

In 2019, California exported almost $1.1 billion to Ireland, providing 11.8% of total US exports to Ireland, and making California one 21 % of the top exporting state to Ireland. Top exported products in 2019 included computers/electronic products and chemicals, accounting for 39% and 21.9% of the total, respectively. Followed 39 % by manufactured commodities and special classification provisions. 8.6 %

9.5 %

21.9 % 10.000 Americans employed by Irish PRESENT IN CALIFORNIA companies in California Computer and Electronic Products Irish companies with a presence in the region and state include: Chemicals Miscellaneous Manufactured Commodities Special Classification Provisions $1.27 bn All Others IN EXPORTS TO IRELAND

4 * Source: Enterprise Ireland ** Source: U.S. Department of Commerce *** LA Business Journal, V. 40 No. 21, 2018 5 Ambassador Eleni Kounalakis, Lt. Governor of California

• GO-Biz provides no-cost, confidential services for incentive Daunting challenges have never held us back and they never and grant navigation. A team of business development will. We will remain steadfast and committed to our values specialists will guide you through the available tax credits, that champion people and planet. Governor Gavin Newsom grants, and financing assistance options that are available often says that California is America’s coming attraction. We to your business. are where the future is born and our innovative spirit includes a commitment to creating a socially just, environmentally To our friends • In 2020, GO-Biz awarded 46 businesses $228 million sustainable level playing field – believing that anyone, no California Competes Tax Credits in exchange for those matter who they are or where they live or come from, should companies’ commitments to create just over 15,000 new, in Ireland, have access to the tools and resources needed to build a quality, full-time jobs and make over $3.4 billion in capital better future for all. investments in California over the next 5 years. Thank you for the many important contributions Irish companies • In October, the state’s Employment Training Panel Greetings from the Golden State, where we are so very proud Dozens of California-based companies have a presence in have made to our state and for your lasting friendship and announced an investment of more than $8 million to train of the long and intertwined history we share with the Emerald Ireland, including Adobe, Airbnb, Google, Hewlett Packard, partnership. Isle. Since our earliest days during the Gold Rush of 1849, Intel, LinkedIn, and Wells Fargo. More than 36,000 Irish more than 6,000 people. we have forged unbreakable cultural and economic ties with nationals are employed by those companies. About 140 Irish • Whether your goods move through ports, trucking We welcome you here in California Ireland that continue to bind us closely together today in the companies have operations on the West Coast of the United companies, airports, railroads, or warehouses, California and look forward to working together 21st century. And just as these ties have helped both of us to States, primarily in California, and more than 50 California- has some of the best logistics infrastructure in the world collectively with you to build a future we grow our economies, so too will they be fundamental to our based businesses have Irish founders. and our Sustainable Freight Unit maintains direct links with shared recovery following the COVID-19 pandemic. We are proud that enhanced trade and investment with industry business owners and leaders. can all be proud of! California and Ireland have long recognized that our prosperity California will be a key component of Ireland’s effort to double and economic strength depend on effective relationships the scope and impact of its global footprint in the years ahead with the people, businesses, and governments of our foreign under the Global Ireland 2025 initiative. As Irish companies look We want Ireland and the world to know that California and partners. Now, more than ever, we know that we must work to California, I want you to know that our team at the Governor’s our thriving innovation economy is open for business; that collaboratively with our international trade and investment Office of Business and Economic Development (GO-Biz) is here nowhere else will you find such a combination of future- partners to lift one another up, to support our displaced to support your efforts. oriented entrepreneurs, bold investors, skilled workers, and workers, and to continue leading the way in the realms of world-class institutions of higher education; and that our trade technological advancement and innovation for which California and investment strategy leverages the state’s leadership and Ireland are so well known. in technology, energy, and sustainability. Whether your business interests lie in technology, aerospace, biosciences, In 2019, California exported nearly $1.1 billion to entertainment, manufacturing, agriculture, tourism and Ireland—12% of total U.S. exports to the country. Total travel, or in any other field of commerce I can assure you trade, both exports and imports, between California and that you will find open doors and ample opportunities for Ireland was almost $3 billion in 2019. success and prosperity in California.

6 7 CALIFORNIA BUSINESS WHY CALIFORNIA? INVESTMENT SERVICES

California Business Investment Services (CalBIS) provides assistance directly to businesses of 1,300+ any size and industry. From initial site search to Local, state, and federal grand opening, CalBIS connects private sector needs to public sector resources. partners to help business location and expansion $1.3bn Incentives available in 2020 California Business Investment Services include: SITE SELECTION PERMIT & REGULATORY ASSISTANCE #1 Companies looking to locate or expand in California CalBIS assists businesses of all sizes and industries can benefit from no-cost, confidential site selection to register, acquire licenses and permits, and remain services. CalBIS engages state, local, and utility in compliance with California regulations. CalBIS also Manufacturing Output, partners to help businesses find the right California facilitates mediation between businesses seeking location. permit assistance and relevant state and local Businesses and Employment authorities. INCENTIVE NAVIGATION The CalBIS team of business specialists guide companies through the state’s available tax credits, grants, resources, and financing assistance options. From the California Competes Tax Credit to Opportunity Zones, CalBIS is a resource for businesses that want to invest in California.

* Sources: GO-Biz, ETP, California State Treasurer, CARB, National Association of Manufacturers

8 9 OUR MENTOR TEAM ACROSS THE US

Sean Sheehan Joseph Barrett Chief Executive, Wisetek Chief Operating Officer, Applegreen Wisetek provide Manufacturing services (CTO), Data Sanitisation, Data Centre decommissioning and I.T Applegreen operates 121 service stations, employing 1,200 people in the USA. Applegreen continue to roll asset disposal services to USA Companies. They have five locations in the USA: (Hyattsville) , out its growth strategy in co-operation with existing real estate investor partners, CrossAmerica Partners (Winchester) , () , (Austin) and (Sacramento) California. They currently and Getty Realty. They see their U.S. expansion to be slow and steady, and will continue their strategic employ 130 people in the US. partnerships with well established fuel brands such as Mobil, Shell, BP and popular food retailers 7-Eleven, Burger King, Subway and Pizza Hut. Roisin Hennerty Managing Director, Ornua Global Foods Division Dermot O’Shea Ornua Foods North America is responsible for the sales and marketing of Ornua products including butter, Co-Founder/Joint CEO, Taoglas butter spreads, milk powder and cheese under the Kerrygold brand for the , and Latin Since their foundation in 2004, Taoglas have combined forward-focused technological thinking with a American markets. Ornua Foods North America’s head office is based in Evanston, with sales and determination to understand and respond to the real needs of our customers. Their cross-cultural business- marketing teams based in regions across the US. solutions approach means research, design, production and customer support services are based at their world-class technology centres in Ireland, Germany, the United States, China and Taiwan. Kevin Buckley CEO, Spearline Patrick Ryan Spearline provides the world’s largest in-country number testing platform which allows clients to proactively Managing Director, USA East Region, Linesight test, monitor and troubleshoot their global telecoms footprint, enabling them to achieve the most efficient Linesight has been providing independent construction consultancy services to the global industry. From telecommunications experience possible. 20 offices around the world, the team works with Tier One clients across a multitude of sectors, including Commercial, Data Centres, Life Sciences, High-Tech Industrial, Residential, Hospitality, Healthcare and Retail. Linesight US is working on projects in excess of $10 billion across 22 states. David Walsh CEO, Netwatch Liam Foley Established in 2003, Netwatch is a Global Risk Management company specialising in business continuity, risk management and security services to clients across Europe, Africa and the USA. Netwatch is an award Director of Strategy & Development, PM Group winning provider of visual asset management. These game changers are responsible for pioneering some PM Groups’ USA operation comprises offices in Boston, Massachusetts and San Francisco, California. Both of the greatest advances in security technology, offices provide Project Management, Process Consultancy, Architectural and Engineering Design, and Commissioning and Qualification services. Conor O’Byrne CEO, Relatecare Ronan Murphy RelateCare is a healthcare communications consultancy and outsourcing organisation that provides patient CEO, Smarttech access and patient engagement solutions to leading healthcare organisations around the world. RelateCare Smarttech247 opened in the US in Q2 2019. The company established operations in Boston to drive the began as a joint venture between the world-renowned Clinic and in 1990 founded Irish Business sales and technical engagements in the US. The Smarttech247 offering is a combination of 24x7 Managed Process Outsourcing firm, Rigneydolphin. RelateCare now has over 370 employees across the U.S. and Ireland Cybersecurity services and SaaS software. The US team is currently 12 people and steadily growing. with approximately a 50/50 employment split between both countries.

Martin McVicar Dan Kiely Co-Founder, Combilft Co-Founder, Voxpro Combilift is the largest global manufacturer of multi-directional forklifts and an acknowledged leader in Voxpro - powered by TELUS International is an award-winning provider of Multilingual Customer Experience long load handling solutions. More than 45,000 units have been sold in over 85 countries since Combilift & Techanical Support solutions. Voxpro powers the Customer Operations of some of the world’s most iconic was established in 1998. The driving force behind Combilift’s operations is a desire to deliver innovation in global brands such as Airbnb, Google, and Robinhood. Headquartered in , Voxpro has offices in , the material handling arena. Responsiveness to the ever-changing needs of the customer permeates every 10 San Francisco & Folsom in California, the Philippines, Romania and Latin America. area of the business. 11 GUIDE WHAT TO REMEMBER!

Top Considerations before “New entrants need to recognise that “Route to market is critical – direct, entering the US Market every USA state is different; don’t make channel or distribution or all three the mistake of thinking the whole options. What does the competitive market is the same.” landscape look like and can you 1. The US is a highly serviced and diverse 7. Visas for the team members that move over Joe Barrett, Applegreen differentiate your offering in a very marketplace, market research and segmentation can take a lot longer than anticipated when mature and well serviced market. Where is crucial. setting up “Investing in the US needs to focus on a will you start, it’s a massive market and 2. Assessment at individual State Level is required. 8. Do not set up a virtual office, make sure you are small volume of clients and delivering segmentation is crucial.“ Carefully consider US policy and procedures or physically present. To gain the trust of decision a higher level of service. US industries Ronan Murphy, Smarttech regulatory and licensing requirements as it may makers you have got to be present in the are very loyal to vendors that seek vary State by State. moment and understand both national and local to continuously improve and exceed “You cannot be all things to all people. business drivers. US decision makers appreciate 3. Legally things are different especially and value regular facetime, relationship building expectations. If an Irish company You need to clearly define your value employment contracts etc. so ensure you have and integrity. entering the US market adopts this proposition and stick to it. Being new contracts and documents in place before approach, growth will be a natural by- spectacular at one thing is far better hiring anyone. 9. Costs are a lot higher than expected for salaries product.“ than being average at lots.” and you need to think about other benefits that Patrick Ryan, Linesight David Walsh, Netwatch 4. Evaluate your product and/or service adapt- are essential for good employees like healthcare ability for the US market. and 401k etc.

5. Understanding cultural nuances or differences 10. Investigate distribution partners or representa- “…the USA is a continent not a country” tive network partners as they can help you get to market quicker. Also, customers often value 6. Be clear on your Unique Selling Point for the the support/communication from that offering. US Market. Review your own business strengths and capabilities.

12 13 GUIDE THE STARTING POINT!

Picking the “Local business organisations are a great way “Every U.S. State has a local enterprise board/ to get the lay of the land. Contact the local investment agency who are always keen for right location Chamber or council in the area for advice. In our companies to set up operations in their region. case, the Greater Sacramento Area Economic These agencies can be utilised as an excellent Council played a significant role in us choosing resource to learn more about the region, get Top 5 Considerations the Folsom site.” introductions to potential customers and learn Dan Kiely, Voxpro more about grants/incentives available to 1. Getting the balance right between basing yourself in an unaffordable area while international companies.” ensuring that you’re not left out in the cold. “If setting up a Manufacturing site, local support Conor O’Byrne, RelateCare structures- State and City Level- may be 2. Availability of talent needs to inform the location you choose. available for your business”. “We initially tried to grow the business 3. Is the location close to your key strategic partners? Roisin Hennerty, Ornua organically ourselves but could not give it the time. We eventually did an acquisition which 4. Is the facility close enough to your customer base? “Consider what functions need to be run locally made penetrating the market place a lot easier.” in the US when entering the market and what 5. How good is the connectivity? From a practical point of view, access to the US Sean Sheehan, Wisetek market through good airport connections allows frequent visits, this gives you the can be run from Ireland” the ability to develop your network until your business has scale to expand your Kevin Buckley, Spearline teams. SUPPORT & INFORMATION CAN BE FOUND AT WWW.SELECTUSA.GOV

14 15 GUIDE LEARNING THE HARD WAY!

Growing business “Based on our experience, US employees “We learned very quickly that due to the size and & avoiding surprises tend to be very much task orientated and scale of the US market, any company investing devoted to succeeding in the specific role they in the US needs to focus on a small volume of Top Considerations have been given. They prefer clear instruction clients and delivering a higher level of service. US 1. US immigration, customs, employment and significantly from State to State. Delays can and performance metrics aligned with their role. industries are very loyal to vendors that seek to tax laws are complex, highly regulated and impact your budget plans. In contrast, Irish employees tend to yearn for continuously improve and exceed expectations. If constantly changing and therefore specialised role variation and can sometimes be motivated an Irish company entering the US market adopts legal advice is necessary. 6. Don’t underestimate the time difference – it can a little differently in that sense. Despite the this approach, growth will be a natural by-product.“ make life difficult at times. fact we are all speaking English, I could share 2. Complexities can arise when your operations countless anecdotes whereby task instructions and sales expand beyond the borders of a single 7. The American Business environment can be “We found out the hard way that our expat state. You may have to withhold taxes for several ruthless. You will be held accountable on every and directives have got lost in translation! employees’ personal tax returns often lead states, depending on the employees’ states of detail. Adopting a “local” approach that is respectful of to taxes being owed, and this can obviously residence and the location of their workplaces. a corporate culture and way of doing things that lead to some anxiety following the tax return. Most states impose a personal income tax but 8. Have a dedicated USA resource to manage day plays a reverence to local subcultures.“ The personal tax system in Ireland is far less there are a few anomalies. to day activities – this should not be managed from Ireland. complicated than the US system. Our HR “When we initially started our research in the 3. In Ireland we can take our close relationship and department is now well versed in this area, and history with the USA for granted. The US has a 9. Be well funded, otherwise you will drown – it US market I was over and back every second we can readily assist our expat team members, remarkable level of diversity which influences will always require more investment than you week. This became a big problem and led to ensure there are no major surprises when they the culture in all walks of life. initially thought. to severe scrutiny by TSA. US immigration, complete their tax return.“ customs, employment and tax laws are 10. Spend time on recruitment – in Ireland we 4. The American healthcare system and the types complex, highly regulated and constantly of insurance benefits you can put in place for have the luxury that everyone is connected in changing and therefore specialised legal your employees is much more difficult than it some way or another! In the US it is completely appears at first. different, so be careful about who you recruit, advice is necessary. In hindsight I would have always check references and not just employers, applied for the work visa earlier because it 5. The length of time to get planning permission also former clients. takes time to complete.“ described as Permits in the USA, varies

16 17 MENTORS FINAL ADVICE Enterprise Ireland Support

Supporting Irish companies to enter and scale in the US market, Enterprise Ireland’s USA team operates out of 5 primary office locations; , Boston, San Francisco, “Similar to other global locations, within the “Our Irishness opened those doors - but it didn’t Austin and , with a 6th office in . US, great service and a strong culture will lead win us business. There are lots of people who will to good business relationships that ensure say ‘no’ on the way to the person who will say ‘yes’. sustainable growth and future prosperity.” So stick with it.” Our team of Market Advisers are largely drawn from the localised for international markets, targeted sector focused private sector in the US, specializing in the particular sector buyer lead generation campaigns and in market PR at key Patrick Ryan, Linesight David Walsh, Netwatch to which they are assigned. Each Market Adviser works with a trade events and missions. client portfolio for that sector providing a range of supports. We also work closely with our Ireland based colleagues to “Be open and share your experiences. Every “I would recommend that you invest upfront and These supports include: facilitating introductions to relevant ensure there is close cooperation and alignment, and that our American citizen I’ve met has been delighted take advice and counsel from other people who buyers; providing access to expert advice from mentors total support package have an impactful role in the strategic and advisory boards; helping Irish companies understand to help and assist in our expansion plans in the may be further along the journey than you” growth plans of our client base. A key part of our Ireland routes to market, distribution channels and supply chain USA. American culture is ‘can do’. Conor O’Byrne, Relatecare based supports are in the form or Executive coaching and dynamics; supporting client companies set up a new market Joseph Barrett, Applegreen internationalisation training provided by our Capability and presence, including connecting with local professional service Mentoring Development department. “Long before we put a move in motion, we providers; undertaking in-market trade, promotional and “Be open and be friendly. America, and its were building up a network in North America. networking events; facilitating the visit of key procurement Over the past 4 decades in particular the US has been a strong people, are very welcoming and are used to Irish organisations such the American Chamber and buying personnel to Ireland; developing in market meeting growth market for Irish companies. In 2019 Irish FDI to the building new relationships very quickly - so say of Commerce Ireland, the IDA and Enterprise itineraries to help Irish companies conduct the primary US is valued at $146BN by the US Bureau of Economic of yes to that social invitation the first time it is Ireland can open doors, so tap into these research necessary to validate, or negate, market or product Economic Analysis. Ireland is the 9th largest source of US assumptions; leveraging our robust network on in market FDI. Irish companies operate across multiple locations in all extended.” resources as much as you can.” consultants (pathfinders) across the US; working closely with 50 states, employing 100,000 people. Over the past 2 years Roisin Hennerty, Ornua Dan Kiely, Voxpro our other agency colleagues to optimize capability for our Enterprise Ireland supported the establishment of 119 offices client companies across the Team Ireland network. by client companies. “The USA is home to some of the world’s leading “Just do it, the opportunities are massive and it’s Additionally, our Irish Advantage export marketing campaign brands and companies but expect to put the an easier business environment to succeed in promotes the capabilities and innovation of Irish exporters to hard yards in.” quickly than Europe “ international buyers through our IrishAdvantage.com website, Liam Foley, PM Group Dermot O’Shea, Taoglas

Enterprise Ireland Paul Burfield SVP, West & T: +1 650 250 1165 E: [email protected] 18 19 Join Us

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