Economic Overview Germany:

Transcription

1 Issue 2014 Economic Overview Germany: Market, Productivity, Innovation

2 Economic overview GErmany Basic Data Area: 357,022 sq. km Population (m.): 80.5 Number of companies 3.7 million, 99.6% SMEs Total turnover of all companies (2011) EUR 5.92 trillion, 36% SME turnover GDP Formation 2012 Others 27.1% Manufacturing Industries 22.4% Construction 4.7% Commerce, Transportation, Catering 14.6% Economic Development GDP (nominal in EUR billion) 2012: 2,666; 2011: 2,610; 2010: 2,495 Per capita GDP (EUR) 2012: 32,550; 2011: 31,914; 2010: 30,517 Inflation rate 2012: 2.1%; 2011: 2.5%; 2010: 1.2% Unemployment rate 2012: 5.5%; 2011: 6.0%; 2010: 7.1% GDP Growth (real annual change in percent) Financial Services, Renting, Business Services 27.2% Foreign Trade (EUR bn) Exports Imports Balance 1, % +0.7% 1, % +13.2% Germany s trade relations with EU (EUR bn) Exports Imports Balance % -0.4% Information & Communication 4.0% +10.0% +13.7% % +19.9% +14.0% +16.9% Export goods (2012): Machinery 18.6%; motor vehicles and parts 16.6%; chemical goods 14.4%; electronic goods 9.0%; foodstuffs 4.4%; others 37.0% Import goods (2012): Crude oil and gas 14.0%; machinery 12.0%; chemical goods 11.7%; electronic goods 10.0%; motor vehicles and parts 7.9%; foodstuffs 5.9%; others 38.5% Sources: Germany Trade & Invest, Federal Statistical Office, Federal Ministry of Finance, ifm Bonn 2013

3 Foreign Direct Investment Paving the Way for Foreign Direct Investment First Choice Business Location Ernst & Young s European Attractiveness Survey 2013 confirms Germany s reputation as one of the most attractive business locations in the world. International decision makers ranked Germany first within the EU, and sixth worldwide in the most attractive business location category. A substantial 38 percent of the 800 plus international managers surveyed consider Germany to be western Europe's FDI magnet. The American Chamber of Commerce highlights the positive regard in which US companies operate in Germany. Asked about their opinion on the German business environment, 81 percent of US company respondents expressed satisfaction. Another 89 percent are convinced that Germany will either improve or maintain its competitive edge in the future. Free and open Markets Germany has a welcoming attitude towards foreign direct investment (FDI). The German market is open for investment in practically all industry sectors, and business activities are free from regulations restricting day-to-day business. German law makes no distinction between Germans and foreign nationals regarding investments or the establishment of companies. The legal framework for FDI in Germany favors the principle of freedom of foreign trade and payment. There are no restrictions or barriers to capital transactions or currency transfers, real estate purchases, repatriation of profits, or access to foreign exchanges. AmCham Business Barometer 2013 American business executives highlighted the following five factors as the top location advantages that distinguish Germany from its competitors. Skilled workers Economic stability Political stability Infrastructure Market potential Source: American Chamber of Commerce Germany, Roland Berger Strategy Consultants 2013 Supporting Investment Projects Incentives in Germany are designed to meet the immediate capital needs of investors. Early stage investment financing provides funding at the beginning of the new investment project. These incentives, mostly provided as cash grants, are important as they guarantee liquidity at a stage in the investment process when investor capital requirements are typically high. Later stage investment incentives are made available in the form of a raft of programs created to support putting together a workforce in Germany (e.g. through wage subsidies) and provide generous R&D project assistance. Incentives in Germany are available to all investors regardless of investor country of provenance. Funding to the tune of approximately EUR 17 billion has been freed up by the EU (co-financed using means obtained from German federal and federal state budgets) for the period 2014 to As well as this, Germany and its individual federal states also make their own incentives funds available to prospective investors. Please visit our website for more incentives information: Global FDI Magnet According to the United Nations Conference on Trade and Development (UNCTAD), Germany ranks among the world s leading countries for foreign direct investments with EUR 558 billion in inward FDI stocks in This represents a growth of 82 percent in the last ten years. According to official Bundesbank (German Central Bank) statistics for 2011, 57 percent of all FDI stocks in Germany originate from within the EU-27; with a further nine percent derived from the remaining European non-eu countries. Investments from outside the EU continue to grow. North America accounts for 23 percent of FDI stock, while Asia holds a six percent share.

4 Foreign Direct Investment Foreign Direct Investment Projects Every year more and more companies discover Germany as a secure and rewarding investment location. More than 55,000 foreign companies are already operating in Germany, providing employment to around three million people proof positive of Germany s attractiveness as an international business location. Between 2008 and 2012, fdi Markets recorded a total of 3,940 investment projects from more than 3,300 foreign companies. With 857 projects, 2012 proved to be the most successful year on record with Germany placing fifth internationally in terms of FDI projects attracted. The most important countries as sources for new investment projects are the USA (22 percent of all investment projects), Switzerland (10 percent), and the UK (eight percent) respectively. In 2009, China emerged as a major source of investments, with the number of Chinese investment projects into Germany more than tripling within just one year. The high level of Chinese investment has been maintained since then, making Germany the world's number one location for Chinese greenfield investments. Diverse Industry Opportunities According to fdi markets, foreign companies invested in 39 different sectors underlining Germany s highly diversified economy. Most new investment projects were realized in the ICT & software industry (17 percent of new projects), business and financial services (15 percent) were close behind. FDI Project Share in Germany by Sector (as percent of total FDI projects) Hotel, Tourism, Entertainment 2% Health Care, Pharma, Biotechnology 5% Energy, Minerals, Metals 5% Transportation, Storage & Logistics 6% Electronics & Semiconductors 7% Chemicals, Plastics, Paper 7% Source: fdi Markets 2013 Textiles 8% Consumer Goods (incl. Food & Beverages) 8% *Shared Service Center/Business Process Outsourcing/Contact Center Source: fdi Markets 2013 Most new projects open sales and marketing & support offices. One in seven investment projects is manufacturing-site located making this still a very important business activity in Germany. Other Sectors 4% Business & Financial Services 15% ICT & Software 17% Automotive, Industrial Machinery & Equipment 16% FDI Project Share in Germany by Business Activity (as percent of total FDI projects) Sales, Marketing & Support 40% Business Services Manufacturing 15% 13% Headquarters Logistics, Distribution & Transportation 6% 5% R&D ICT & Internet Infrastructure SSC/BPO/CC * Education & Training 1% 1% 1% 1% Other Activities 17% Germany Trade & Invest's industry experts will assist you to realize your investment project in Germany. Please contact invest@gtai.com for more information.

5 Economic Overview Germany: Market Europe s Economic Hub Europe s Largest Market Germany is the largest market in Europe. It constitutes 21 percent of European GDP, and is home to 16 percent of the total European Union (EU) population. The German economy is both highly industrialized and diversified; with equal focus placed on services and production. Stable Economy Germany is widely considered to be the economic stabilizing force in Europe - particularly within the Eurozone. While the EU-28 experienced a minor dip in real GDP growth, the German economy grew at a positive rate. Between 2008 and 2012, Germany s average real GDP growth rate was - alongside that of the USA - the highest of all G8 states. The German government expects an upswing of 1.7 percent in Global Player Germany s products continue to be export hits worldwide. Offering innovative and competitive products of the highest quality, it is not surprising that, since 2000, Germany s average export quota has amounted to 35 percent. The quota level climbed to an all-time high of 41.5 percent in This development corresponds with another record: In 2012, German export levels reached almost EUR 1.1 trillion for the first time in history. Imports also reached an alltime high of EUR 909 billion, with the trade balance reaching its second highest recorded value (EUR +188 billion). German-produced goods from the chemical, automotive, and machinery & equipment industries are in particularly high demand worldwide. Share of Total GDP and Population in the European Union 2012 GDP (in EUR billion) Germany s main trading partners number European countries such as France, UK, Italy, and the Netherlands as well as international markets including the United States, China, Russia, and Japan. Sixtynine percent of all exports are exported to European countries, of which 57 percent go to EU member states. In 2012, the number two region for German exports was Asia; receiving approximately 16 percent of all goods from Germany, followed by the Americas at approximately 12 percent. Manufacturing Location Germany German companies represent ten percent of European manufacturing companies and generate 27 percent of total EU turnover in the sector. In fact, the manufacturing sector represents more than one fifth of Germany s value added one of the highest shares in Europe. Share of Total GDP (EU-28) Population (in million) Share of Total Population (EU-28) Germany 2,666 21% 80 16% France 2,032 16% 66 13% UK 1,930 15% 64 13% Spain 1,029 8% 47 9% Netherlands 599 5% 17 3% Poland 381 3% 39 8% Czech Rep % 11 2% Slovak Rep. 71 1% 5 1% EU-28 12, Eurozone 9,484 73% % USA 12, China 6,374 1,354 Japan 4, Source: Federal Statistical Office, Eurostat, US Census Bureau, Japanese Statistics Bureau 2013 Increasingly more foreign companies are placing their faith in Germany as a vital production site location, and are benefiting from the country s excellent business framework and superior productivity rates. SMEs: germany s Economic Backbone Exports are driven by Germany s backbone of highly innovative small and medium-sized enterprises (SMEs). These constitute 99.6 percent of all companies, employing almost 80 percent of all employees in Germany. Many of these SMEs are world market leaders in their respective niche segments. Together with internationally leading large companies including Bayer, BASF, Daimler, Volkswagen, and Siemens to name but a few they make up Germany s manufacturing industrial base. Economic Overview germany

6 Economic Overview Germany: Market Closer to Market with First class Infrastructure Europe s global Logistics Hub With state-of-the-art transportation networks by road, rail, sea, and inland waterways as well as a dense network of both national and international airports Germany provides easy access to domestic and international markets. Little wonder that Germany is a global logistics hub. More goods pass through Germany than through any other country in Europe. Its approximately one quarter share of the European logistics market (EU-28, Norway and Switzerland) reflects Germany s role as the major player in the continent s economy. World class Transport Infrastructure Germany s infrastructure excellence is confirmed by a number of recent studies including the Swiss IMD s World Competitiveness Yearbook and various investor surveys conducted by institutions including the World Bank and Ernst & Young. The Global Competitiveness Report of the World Economic Forum (WEF) ranked Germany first in Europe and third worldwide for infrastructure; singling out Germany s extensive infrastructure for highly efficient transportation of goods and passengers for special praise. Accumulated in this score for Germany are high marks for the quality of roads and air transport, excellent railroads and port infrastructure, as well as its communications and energy infrastructure. Germany is our strategic focal point, a country there is no way around in our industry. Germany is the largest market in Europe, which creates the greatest advantages for our company. Investing here was an absolute must. Sun Shubao, General Manager, Haier Group Europe and Germany World class network Infrastructure Among the highlights of the country s network infrastructure are Europe s second largest port measured in container port traffic (Hamburg), Europe s largest port container terminal (Bremerhaven) and over 250 inland ports. Germany has a dense network of airports (of which 21 are international airports). Among them, Frankfurt is the world s seventh and ninth largest airport in terms of cargo and passenger volume respectively. The country s highway system has one of the highest highway kilometer density levels in Europe, its 37,679 km of railway track being almost enough to circle the globe. Germany s high-speed railway network, with speeds of up to 300 km/h, is the fourth largest in the world. Logistics Giants Not only is Germany s logistics infrastructure among the best, its companies are also global logistics leaders. In fact, the world s leading logistics services provider is a German company Deutsche Post DHL. Deutsche Bahn operates Europe s largest rail network and Lufthansa Cargo is one of the world s leading global air freight companies. Annual revenues of EUR 228 billion in 2012 make Germany Europe s logistics leader. No other EU country comes close to Germany s market size. Bringing East and West Together In the north, Germany s seaports are an important conduit for trade with the UK, Scandinavia, and the Baltic states. In the west, an extensive network of roads, rail links and inland waterways feeds into France and the Benelux countries. To the south, Germany has strong commercial ties with Switzerland and Austria and direct road, rail and water links with the Balkan states. Turning eastwards, Germany s borders with Poland and the Czech Republic also bring the Slovak Republic and Hungary within easy reach and make the more distant markets in Turkey and Russia readily accessible. Quality of Infrastructure in Europe 2013 Rank Country 1 Germany 2 France 3 Switzerland 4 Netherlands 5 UK 6 Spain 7 Luxembourg 8 Austria 9 Iceland Source: World Economic Forum Belgium Source: WEF 2013 Economic Overview germany

7 Economic Overview Germany: productivity Increasing Competitiveness High Productivity Measured in unit labor costs, Germany experienced a major increase in productivity the past decade. In marked contrast to other European countries which have experienced an overall increase in unit labor costs, Germany s unit labor costs decreased by a yearly average of 0.3 percent for the period 2002 to This made the economy more competitive particularly manufacturing. Stable Labor Costs At the same time, the labor cost gap between Germany and its eastern European neighbors has been significantly reduced. In fact, Germany has gained the labor-cost edge in recent years. Since 2003, wages have risen in most European countries (EU-28), with the growth rate averaging three percent. While some countries particularly those in eastern Europe experienced a rise of more than seven percent, Germany recorded the lowest labor cost growth within the EU at just 1.6 percent. This has been another decisive argument in favor of Germany as a premium business location. Europe is a growing market for our light-curing adhesives. Due to the highly qualified workers and efficient cost structure, Germany was the clear choice for the expansion of our production and R&D activities. A. Gregory Bachmann, President, DYMAX Corporation Assessment of Sophistication of Production Process 2012 Japan Germany Netherlands USA UK France Czech Rep. 4.7 Spain 4.5 Slovak Rep. 4.5 Poland 4.1 China =labor-intensive methods or previous generations of process technology 7=the world s best and most efficient process technology Source: World Economic Forum 2013 Labor Cost Growth in Total Economy (annual average growth in percent ) Germany 1.6% Excellent Production Standards Germany s high productivity is also closely linked to its excellent production process standards. This has been confirmed by a study of international executives conducted by the World Economic Forum (WEF). According to the study findings, Germany is seen as an EU-country where the best and most efficient process technology is applied. France Netherlands Spain UK Czech Rep. Poland Hungary Slovak Rep. 2.3% 2.7% 2.7% 3.4% 5.2% 5.4% 6.0% 6.1% 0% 5% 10% Source: Eurostat 2013

8 Economic Overview Germany: productivity Highly Skilled Workforce Germany s excellent workforce is decisive to the country s high productivity rates. It comprises over 41 million people making it the largest pool of ready labor in the EU. Germany s world-class education system ensures that the highest standards are always met. More than 80 percent of the German workforce has received formal vocational training or is in possession of an academic degree. Dual Education System In order to secure the economy s demand for highly qualified personnel, Germany developed a dual system in vocational training - combining the benefits of classroombased and on-the-job training over a period of two to three years. There are currently around 350 occupations recognized by the system. In close cooperation with the German government, the German Chambers of Industry and Commerce (IHKs) and the German Confederation of Skilled Crafts (ZDH) ensure that exacting standards are rigidly adhered to, guaranteeing the quality of training provided across Germany. Dual System of Apprenticeship training contract between company and apprentice Workforce in Germany by Level of Professional Education 2012 (percent of total workforce) Unskilled 18% Skilled Craftsmen (including dual education system apprentices) 54% Apprenticeship state-recognized training occupation 1-2 days training 3-4 days training Public Training School - funded by federal state - 2/3 vocational subjects Company - pays remuneration for apprentice - training by company employee as certified trainer of apprentice Source: Germany Trade & Invest 2013 (based on: DIHK, Federal Ministry of Education and Research, Federal Statistical Office 2013) University Graduates 18% Vocational College Graduates & Technicians (master craftsmen) 10% One in five German companies take part in the dual vocational training system, thereby turning apprentices into specialists who mirror fitting each company s individual needs. Most apprentices receive an employment contract after training. In production-based industries more than 70 percent are taken on as employees, underlining the importance of the training system for companies. More than 1.4 million young people are currently in a vocational training in Germany. With Europe s lowest youth unemployment rate, Germany s dual education system enjoys an unparalleled international reputation. Source: Federal Statistical Office 2013 Engineering Excellence According to the German Federal Statistical Office, Germany has an excellent standard in higher education. In 2012, some 493,000 students at more than 420 universities embarked on a course of academic study. Technical fields of study experienced an undergraduate enrollment level increase of more than eight percent. Germany s share of university students in the sciences, mathematics, computer sciences, and engineering is the third highest in the EU, with 32 percent of all students. German universities have introduced masters and bachelor degrees for improved international acceptance and comparison. In addition, the country can be proud of one of the highest rates of graduates with a doctoral degree. With 319 PhD graduates per million inhabitants, it ranks second in a comparison of EU countries.

9 Economic Overview Germany: innovation High Innovation Rate Innovation Leader Germany In Germany, enormous sums are invested in the development of new technologies and innovations. Today, total R&D expenditures of more than EUR 75 billion (2011) make Germany Europe s largest research location. Since 2005, R&D expenditures have steadily increased at a compound annual growth rate of five percent. R&D is considered to be among the most important areas for the development of the German economy. Industry in particular has significantly increased its R&D expenditures in recent years. More and more companies are establishing international research facilities in Germany. Between 2008 and 2011, R&D FDI stocks in Germany rose by 29 percent to EUR 1.4 billion. Location Advantage: Innovation Value-Add Germany s innovation profile is dominated by manufacturing industry spending; with EUR 54.6 billion in outgoings more than 86 percent of the total economy s R&D expenditure. Many of these high-tech industries have a significant impact on domestic economic performance. The latest data by the German Institute of Economic Research (DIW) finds that no other industrialized country produces a larger share of gross value added in researchintensive industries than Germany. The share of total value creation exceeds that of Japan and the US, and is more than double the share of France, UK, and Italy. A broad base of foreign investors in R&D underlines Germany s strong position. According to a DIW study, around 85,000 employees work in R&D in foreign-owned German subsidiaries. Share of Research-intensive Industries of Gross Value Added % 12% 10% 8% 6% 4% 2% 0% 13.9% 11.0% 2.8% 10.6% 7.4% 3.2% Germany Japan EU-14 USA Research-intensive industries (total) High-tech industries Cutting-edge technology Source: German Institute of Economic Research (DIW) 2013; Note: High-tech industries are characterized by high internal R&D expenditures of between 2.5%-7% of the average OECD turnover; Cutting-edge technologies show an internal R&D intensity of more than 7% of the average OECD turnover. With an annual R&D budget of EUR 15.2 billion, these companies account for more than 27 percent of total industry innovation expenditure. Most R&D facilities are still operated by European and US companies. However, Germany s innovation landscape is very firmly on China s radar. In a 2012 Ernst & Young study of 400 Chinese managers, 72 percent of respondents identified Germany as Europe s best location for establishing an R&D center. Diverse Innovation Landscape Industrial research reflects Germany s key source of innovation. Domestic companies invested more than EUR 50 billion in developing new technologies for competitive products in Five of the EU s top ten R&D companies are German enterprises, with Volkswagen leading the ranking. Germany s innovation landscape represents various research players with the industry as a major player in contract research. In 2011, companies invested around EUR 12.3 billion in third-party (i.e. contract) research, 5.9% 4.1% 1.8% 6.3% 3.1% 3.2% e.g. research activities led by university and non-university research organizations. Today, successful research in Germany is based on efficient cooperation of companies, universities, and research organizations. A national cluster network combines cooperative research along the value chain with traditionally strong and world-leading industries. High-Tech products Made in Germany German companies are global leaders in the development of new technologies. The Made in Germany brand has been a seal of quality for over a century. In 2011, Germany exported high-tech goods to the value of EUR 132 billion making it the top high-tech goods exporter in Europe and second worldwide.

10 Economic Overview Germany: innovation Public R&D Support: Germany s High-Tech Strategy An unprecedented campaign to foster the advancement of new technologies was launched by the German government. The High-Tech Strategy promotes the advancement of new technologies by creating synergy effects between industry and institutional research. Most programs within the framework of the High-Tech Strategy promote partnerships between different project partners particularly enterprises and research institutes in order to bring together institutional research and entrepreneurial expertise. R&D projects can accordingly count on generous financial support in the form of R&D grants. Interestreduced loans and special partnership programs complete Germany s public R&D project support. Germany is not only an attractive market, but it is also extremely strong on research and development. This is why I brought my R&D activities and marketing operations over to Germany from Switzerland. Zeng Quiping, CEO and founder of IDENCOM National Share of Researchers in EU Others (18 EU countries) 20% Netherlands 3% Portugal 3% Sweden 3% Poland 4% Italy 7% Germany 21% UK 16% WoRLd Class Know-How While Germany is home to the largest population of researchers in Europe (21 percent of all EU scientists live and work in Germany), German scientists work on projects all over the world. For example, research results obtained by the Max Planck Society are achieved through fruitful partnerships with more than 6,000 partners in research institutions across 120 countries. Cooperation projects between companies and academic research institutes provide an efficient way to close knowledge gaps. Scientists can be easily integrated into the company team of developers and researchers and, increasingly, institutes provide for the necessary laboratory facilities. Europe s Patent Leader With over 13,300 patents granted at the European Patent Office in 2012, Germany s share of patents is almost twice that of France and the UK combined. This shows the commercial viability of innovations made in Ger- Source: Eurostat 2012 Spain 8% many. The country is also one of the leading European nations in triadic patents (patents registered at the three major global patent offices: the European Patent Office, the United States Patent and Trademark Office, and the Japan Patent Office). profiting from Innovation Clusters For German companies, innovating is not an isolated task. Nonuniversity research institutes, universities and companies are all working together in numerous clusters throughout the country to improve or invent new products, services, and processes. To this end, the German Federal Government has been providing targeted financial support for 20 years. France 15% Universities and non-university research institutions also serve as innovative partners to industry. According to the German Federal Statistical Office, universities invested approximately EUR 13.5 billion in R&D in Germany s four globally renowned non-university research foundations - Max Planck, Fraunhofer, Helmholtz, and Leibniz - also boasted an overall research budget of around EUR 8.1 billion for the same year. With more than 66,000 researchers working at 240 institutes, these organizations are involved in a broad spectrum of different research projects; covering everything from fundamental to applied science.

11 Germany: At the Crossroads of Europe Situated at the market crossroads of Europe, Germany s optimal geographic location is beyond question: Over half of the EU population lives within 500 kilometers of Germany s borders; more goods pass through Germany than any other European country; and almost all of Europe is reachable within three hours by air or 24 hours by road. Finland lane > Sweden 3 h by p Russia Norway Helsinki Stockholm Moscow Tallinn Oslo Estonia 1.5 h > Riga Latvia Lithuania Denmark Minsk Copenhagen RU Vilnius Belarus Dublin Ireland Warsaw Berlin London Amsterdam Belgium 15 h > GERMANY Ukraine Czech Republic Paris Vienna France Austria Bern h < Portugal by Moldova Chisinau Bratislava Budapest Romania Slovenia Zagreb Ljubljana Croatia Bucharest Belgrade BosniaHerzegovina Serbia ck h Slovak Republic Hungary Switzerland < h by train > Prague Brussels Luxembourg 12 Kiev Poland Netherlands Bulgaria Sarajevo u tr Montenegro Kosovo Italy Podgorica Pristina Tirana Rome Sofia Skopje Ankara Macedonia Albania Madrid Turkey Lisbon Greece Spain Athens Malta Valletta Source: Germany Trade & Invest 2011 Cartography: António Duarte UK

12 Innovation Made in Germany Individual federal state research budgets often correspond with those of other European countries. Bavaria s R&D spending, for example, is comparable with the investments of Russia, while North Rhine-Westphalia invests more than Switzerland. Germany invests significantly in fast-developing technologies. With a 2011 R&D investment level of more than EUR 75 billion, Germany invested almost the combined innovation expenditures of the UK (EUR 32 billion) and France (EUR 45 billion) put together. Technology transfer between universities, non-university research organizations, and companies takes place in highly specialized technology clusters located across the country. R&D Expenditure by Federal State Equivalent Country 2011 DENMARK BALTIC SEA NORTH SEA Schleswig-Holstein Hungary Mecklenburg-Vorpommern Romania Hamburg Bulgaria+Romania+Hungary Bremen Baltic States POLAND Niedersachsen Norway Berlin Czech Republic + Slovak Republic Brandenburg Slovenia THE NETHERLANDS Saxony-Anhalt Baltic States North Rhine-Westphalia Switzerland Saxony Poland Hessen Finland BELGIUM Thuringia Hungary Rheinland-Pfalz Portugal CZECH REPUBLIC LUXEMBOURG Bavaria Russia FRANCE Baden-Württemberg Italy EUR 75.5 bn EUR 45.0 bn UK France Source: Germany Trade & Invest research based on Federal Statistical Office, Eurostat 2013 Germany EUR 31.6 bn Cartography: roccomontoya istockphoto.com Saarland Slovak Republic

13 Economic Overview Germany: services Germany Trade & Invest Helps You Germany Trade & Invest s teams of industry experts will assist you in setting up your operations in Germany. We support your project management activities from the earliest stages of your expansion strategy. We provide you with all of the industry information you need covering everything from key markets and related supply and application sectors to the R&D landscape. Foreign companies profit from our rich experience in identifying the business locations which best meet their specific investment criteria. We help turn your requirements into concrete investment site proposals; providing consulting services to ensure you make the right location decision. We coordinate site visits, meetings with potential partners, universities, and other institutes active in the industry. Our team of consultants is at hand to provide you with the relevant background information on Germany s tax and legal system, industry regulations, and the domestic labor market. Germany Trade & Invest s experts help you create the appropriate financial package for your investment and put you in contact with suitable financial partners. Incentives specialists provide you with detailed information about available incentives, support you with the application process, and arrange contacts with local economic development corporations. All of our investor-related services are treated with the utmost confidentiality and provided free of charge. Strategy Evaluation Decision & Investment Project Management Assistance Business opportunity analysis and market research Market entry strategy support Project partner identification and contact Joint project management with regional development agency Coordination and support of negotiations with local authorities Location Consulting /Site Evaluation Identification of project-specific location factors Cost factor analysis Site preselection Site visit organization Final site decision support Support Services Identification of relevant tax and legal issues Project-related financing and incentives consultancy Organization of meetings with legal advisors and financial partners Administrative affairs support Accompanying incentives application and establishment formalities

14 contact Imprint Publisher Germany Trade and Invest Gesellschaft für Außenwirtschaft und Standortmarketing mbh Friedrichstraße Berlin Germany T. +49 (0) F. +49 (0) Executive Board Dr. Benno Bunse, Chairman/CEO Dr. Jürgen Friedrich, CEO Authors Thomas Bozoyan, Market Intelligence Germany Germany Trade & Invest, Dr. Hans-Peter Hüssen, Market Intelligence Germany Germany Trade & Invest, Marc Lehnfeld, Market Intelligence Germany Germany Trade & Invest, Editor William MacDougall, Germany Trade & Invest Layout Germany Trade & Invest Print Das Druckhaus Bernd Brümmer, Bonn Support Promoted by the Federal Ministry for Economic Affairs and Energy and the Federal Government Commissioner for the New Federal States in accordance with a German Parliament resolution. Notes Germany Trade & Invest, January 2014 All market data provided is based on the most current market information available at the time of publication. Germany Trade & Invest accepts no liability for the actuality, accuracy, or completeness of the information provided. Order Number 14783

15 Germany Trade & Invest Friedrichstraße Berlin Germany T. +49 (0) F. +49 (0) About Us Photo: istockphoto.com Claudia Dewald Germany Trade & Invest is the foreign trade and inward investment agency of the Federal Republic of Germany. The organization advises and supports foreign companies seeking to expand into the German market, and assists companies established in Germany looking to enter foreign markets. All inquiries relating to Germany as a business location are treated confidentially. All investment services and related publications are free of charge. Promoted by the Federal Ministry for Economic Affairs and Energy and the Federal Government Commissioner for the New Federal States in accordance with a German Parliament resolution.