Future investment by US companies in Ireland is in danger because of a shortage of suitably qualified staff, according to the American Chamber of Commerce in Ireland.

A survey published by the chamber shows that 73 per cent of companies questioned said they had struggled to secure skilled labour in the past 12 months. The poll, which questioned 55 US companies employing more than 17,000 people in Ireland, also found that almost one-quarter of respondents believed investment had been lost due to labour issues.

"It is clear from the survey responses we are getting from our members that their head offices in the US are becoming more and more aware of the labour shortage in Ireland," said chamber president Dr Fraser Logue. "There are examples of projects being delayed and clear evidence that a sizeable number of companies who are already in Ireland will look elsewhere for further investment."

While an overwhelming majority (96 per cent) agree that Ireland is a good place to do business, 42 per cent of respondents said Ireland would not be a preferred location if their US parent companies were considering further foreign direct investment.

US companies have played an important part in the development of the economy over the past decade, with total US investment in Ireland surpassing $73 billion (€57 billion).

More than 600 US companies, many of which operate out of the Republic with a European and sometimes worldwide mandate, employ more than 90,000 people directly - equal to 5 per cent of the workforce - and support a further 250,000 jobs in Irish industry. Almost one-quarter of all new greenfield US investment into Europe comes into Ireland.

Dr Logue said that one of the main concerns of the chamber's members is the shortage of fourth-level graduates, particularly in engineering and finance, and he called on the Government to do something to reverse this trend.

"Getting more students to stay on at college would be beneficial to both the companies and the individuals," he said, adding that adults should also be encouraged to take time out from work to return to studying. According to the chamber's poll, labour costs are an issue for almost three-quarters of the US companies in Ireland. While 73 per cent of respondents said they were satisfied with the quality of labour in Ireland, 62 per cent also said they had sought to recruit staff from outside the State.

Of those who had looked to recruit staff from overseas, 31 per cent said they had recruited staff from the 10 new EU countries.

While hiring foreign nationals to work in Ireland will fill the gap temporarily, there are concerns that in the long run it may encourage companies to consider transferring their operations to outside of the Republic.

This fear is accentuated by the fact that while just over half of respondents said Ireland is as good a location for direct investment now as it was when they first invested in the country, 42 per cent said that it was no longer the preferred destination for further foreign direct investment.