Business Location Germany. Economic Overview Germany: Market, Productivity, Innovation Issue 2013

Transcription

1 Business Location Germany Economic Overview Germany: Market, Productivity, Innovation Issue 2013

2 Economic Overview Germany Basic Data Area: 357,002 sq. km Population (m.): 81.8 Number of companies * 3.7 million, 99.6% SMEs Total turnover of all companies (2010) * EUR 5.24 trillion, 37.8% SME turnover * ifm Bonn 2012 estimate Economic Development GDP (nominal in EUR billion) 2011: 2,593; 2010: 2,496; 2009: 2,375 Per capita GDP (EUR) 2011: 31,700; 2010: 30,500; 2009: 29,000 Inflation rate 2011: 2.5%; 2010: 1.2%; 2009: 0.2% Unemployment rate 2011: 6.0%; 2010: 7.1%; 2009: 7.7% GDP Growth (real annual change in percent) GDP Formation 2011 Foreign Trade Foreign trade (EUR bn) Exports Imports Balance Others 26.7% Financial Services, Renting, Business Services 26.3% Germany s trade relations with EU (EUR bn) Exports to EU Imports from EU Balance 2011 % 2010 % 2009 % 1, Manufacturing Industries 22.6% Construction 4.6% Commerce, Transportation, Catering 16.0% Information & Communication 3.8% Export goods (% of total exports SITC) 2011: machinery 18.8; motor vehicles and parts 16.8; chemical goods 14.1; electronic goods 9.3; foodstuffs 4.3; others 36.7 Import goods (% of total imports SITC) 2011: foodstuffs 5.8; motor vehicles and parts 7.9; electronic goods 10.3; chemical goods 11.8; machinery 12.3; crude oil and gas 12.5; others 39.4 Sources: Germany Trade & Invest, Federal Statistical Office, Federal Ministry of Finance, ifm Bonn 2012

3 Foreign Direct Investment Paving the Way for Foreign Direct Investment First Choice Business Location A recent study conducted by the American Chamber of Commerce highlights the positive regard in which the German business environment is held by US companies. Invited to indicate their main medium-term investment focus within the EU, 73 percent of participating American companies named Germany as their first choice; followed by Eastern Europe (57 percent), and Western Europe (33 percent) respectively. Ernst & Young s European Attractiveness Survey 2012 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. 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 2012 American business executives highlighted the following factors as the top location advantages that distinguish Germany from its competitors. Stability, reliability, security, continuity Skilled workers, qualified employees, education Market size, market relevance, capacity Infrastructure, logistics Innovation and research intensity Source: American Chamber of Commerce Germany, Roland Berger Strategy Consultants 2012 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 EUR 26.3 billion has been freed up by the EU (co-financed using means obtained from German federal and federal state budgets) through 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 more than EUR 513 billion in inward FDI stocks in This represents a growth of 13 percent from 2008 to According to official Bundesbank (German Central Bank) statistics for 2010, 76 percent of all FDI stocks in Germany originate from within the EU-27; with a further eight percent derived from the remaining European non-eu countries. Investments from outside the EU continue to grow. North America accounts for ten percent of FDI stock, while Asia holds a five percent share.

4 Foreign Direct Investment Foreign Direct Investment Projects FDI Project Share in Germany by Sector (as percent of total FDI 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 2007 and 2011, fdi Markets recorded a total of 3,535 investment projects from around 3,000 foreign companies. With 834 projects, 2011 proved to be the most successful year on record with Germany placing fifth internationally in terms of FDI projects attracted. Hotel, Tourism, Entertainment 2% Health Care, Pharma, Biotechnology 5% Transportation, Storage & Logistics 6% Energy, Minerals, Metals 6% Textiles 7% Consumer Goods (incl. Food & Beverages) 7% Source: fdi Markets 2012 Electronics & Semiconductors 7% Chemicals, Plastics, Paper 8% Other Sectors 4% ICT & Software 18% Business & Financial Services 15% Automotive, Industrial Machinery & Equipment 15% The most important countries as sources for new investment projects are the USA (24 percent of all investment projects), Switzerland (eight 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. This high level was even exceeded in 2011, 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 (18 percent of new projects). Business and financial services as well as automotive and industrial machinery & equipment were close behind each with 15 percent of all projects. FDI Project Share in Germany by Business Activity (as percent of total FDI projects) Sales, Marketing & Support 38% Business Services Manufacturing 15% 14% Headquarters Logistics, Distribution & Transportation 7% 6% R&D ICT & Internet Infrastructure SSC/BPO/CC * Education & Training 1% 1% 1% 1% Other Activities 16% *Shared Service Center/Buisness Process Outsourcing/Contact Center Source: fdi Markets 2012 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. 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 20 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. Quick Recovery Germany quickly recovered from the economic slump of With a GDP increase of 3.6 percent, the economy experienced a strong growth dynamic in In the second quarter of 2010 alone, Germany s GDP expanded by 2.2 percent the strongest quarteron-quarter growth since reunification in This positive development is reflected in all relevant economic key data. The trend continued in 2011, with the German economy growing at a rate of three percent. 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. German trade figures enjoyed a brisk recovery from the global recession; increasing by around 20 percent in 2010 and 11 percent in Furthermore, for the first time in history, exports amounted to more than EUR 1 trillion (2011). Imports also reached an all-time high of EUR 902 billion. The export quota in 2011 climbed to a record high of more than 41 percent. German-produced goods from the chemical, automotive, and machinery & equipment industries are in particularly high demand worldwide. Germany s main trading partners number European countries such as France, UK, Italy, and Share of Total GDP and Population in the European Union 2011 GDP (in EUR billion) the Netherlands as well as international markets including the United States, China, Russia, and Japan. Seventy-one percent of all exports are exported to European countries, of which 59 percent go to EU member states. In 2011, the number two region for German exports was Asia; receiving approximately 16 percent of all goods from Germany, followed by the Americas at approximately 10 percent. Manufacturing Location Germany German companies represent more than nine percent of European manufacturing companies and generate 26 percent of total EU turnover in the sector. In fact, the manufacturing sector represents nearly one fifth of Germany s value added one of the highest shares in Europe. 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. Share of Total GDP (EU-27) Population (in million) Share of Total Population (EU-27) Germany 2,593 20% 82 16% France 1,997 16% 65 13% UK 1,750 14% 62 12% Spain 1,063 8% 46 9% Netherlands 602 5% 17 3% Poland 370 3% 38 8% Czech Rep % 11 2% Slovak Rep. 69 1% 5 1% USA 10, Japan 4, EU-27 12, Eurozone 9,421 74% % Source: Eurostat, US Census Bureau, Japanese Statistics Bureau 2012 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.

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-27, 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 UNCTAD 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 over EUR 220 billion in 2011 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 Rank Country 1 Germany 2 France 3 Switzerland 4 UK 5 Netherlands 6 Spain 7 Luxembourg 8 Austria 9 Denmark Source: World Economic Forum Sweden Source: WEF 2012

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 0.4 percent for the period 2004 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 2002, wages have risen in most European countries (EU-27), with the growth rate averaging 3.1 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 2011 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 2012 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 a country where the best and most efficient process technology is applied. France Netherlands Spain UK Czech Rep. Poland Hungary Slovak Rep. 2.4% 3.1% 3.3% 3.7% 5.7% 5.8% 7.2% 7.5% 0% 5% 10% Source: Eurostat 2012

8 Economic Overview Germany: Productivity Highly Skilled Workforce Germany s excellent workforce is decisive to the country s high productivity rates. It comprises over 40 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 Germany provides direct access to a highly qualified and flexible labor pool. For vocational training the country developed the dual education system unique in combining the benefits of classroom-based and on-the-job training over a period of two to three years which is specifically geared to meet industry needs. There are currently around 350 occupations recognized by the system. The German Chambers of Industry and Commerce (IHKs) ensure that exacting standards are rigidly adhered to, guaranteeing the quality of training provided across Germany. Worker Motivation in Companies 2012 Switzerland Germany Japan Netherlands USA 6.55 Czech Rep UK 5.78 China 5.73 Slovak Rep Poland 5.08 Hungary 5.03 France 4.78 Spain =highest motivation level Note: IMD WCY Executive Opinion Survey based on an index from 0 to 10 Source: IMD World Competitiveness Yearbook 2012 Workforce in Germany by Level of Professional Education 2011 (percent of total workforce) Unskilled 17% Skilled Craftsmen (dual education system apprentices) 55% University Graduates 17% Vocational College Graduates & Technicians (master craftsmen) 11% Engineering Excellence According to the OECD, Germany has an excellent standard in higher education. In 2011, some 517,000 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 31 percent of all students. German universities have introduced masters and bachelor degrees for improved international acceptance and comparison. Source: Federal Statistical Office 2011 In addition, the country can be proud of one of the highest rates of graduates with a doctoral degree. With 311 PhD graduates per million inhabitants, it ranks second in a comparison of EU countries. Outstanding Reputation German labor flexibility is reflected in higher than average employee motivation levels exceeding those of most leading industrialized nations. In fact, according to the IMD World Competitiveness Yearbook, German employee motivation levels are greater than those of their counterparts in the US, China, Poland, France, and the UK. A direct corollary of this is the fact that Germans work more than their international peers (40.6 hours per week) and lose less days per annum to strike action than other European nations (significantly below the EU-27 average according to Eurofound).

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 almost EUR 70 billion (2010) make Germany Europe s largest research location. Since 2005, R&D expenditures have steadily increased at a compound annual growth rate of 4.6 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. The European Commission accordingly expects Germany to reach its ambitious 2020 R&D target of three percent of R&D expenditures of GDP in the coming years (Innovation Union Competitiveness Report 2011). Location Advantage: Innovation Value-Add A 2011 study carried out by the German Institute of Economic Research (DIW) found that no other industrialized country produces a larger share of gross value added in researchintensive manufacturing industries than Germany. Germany especially outperforms in its traditionally strong industries: machinery, automotive, chemicals, and electronics. The share of total value creation in research-intensive industries in Germany 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. Around 85,000 employees work in R&D in German subsidiaries owned by foreign companies. With an annual R&D budget of EUR 15.2 billion in 2009, Share of Research-intensive Industries of Gross Value Added % 12% 10% 8% 6% 4% 2% 0% 12.4% 9.5% 2.9% 9.8% 6.5% Germany Japan EU-14 USA Source: German Institute of Economic Research (DIW) 2012; 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. 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. 3.3% Research-intensive industries (total) High-tech industries Cutting-edge technology Diverse Innovation Landscape Industrial research reflects Germany s key source of innovation. Domestic companies invested almost EUR 47 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 2010, companies invested almost EUR 11 billion in third-party 6.5% 4.2% 2.3% 6.9% 3.6% 3.4% (i.e. contract) research 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 2010, Germany exported high-tech goods to the value of EUR 120 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 has been 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. As a global company, Alcatel-Lucent relies on Germany s excellent R&D landscape. A culture of efficiency, creativity, and entrepreneurship creates the ideal environment for us to innovate. Alf Henryk Wulf, Chairman of the Board, Alcatel-Lucent Deutschland AG National Share of Researchers in EU Others (18 EU countries) 20% Netherlands 3% Portugal 3% Sweden 3% Poland 4% Italy 7% Germany 21% France 15% 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 123 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 13,000 patents granted at the European Patent Office in 2011, Germany s share of patents is more than twice that of France and the UK combined. Source: Eurostat 2012 Spain 9% This shows the commercial viability of innovations made in Germany. The country is also the leading European nation 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 The German R&D landscape is best exemplified by close cooperation between the worlds of science and industry. Germany s publicly funded research bodies provide an internationally unique location advantage. Large networks of applied research institutes provide companies particularly SMEs with unparalleled access to world-class research. With about 80 research facilities and more than 20,000 employees, the Fraunhofer-Gesellschaft utilized UK 15% more than EUR 1.8 billion in research funding in The Leibniz Association has established a network of 86 research institutions with almost 17,000 employees. Some of the world s most renowned fundamental research institutes are also located in Germany. The Max Planck Society and the Helmholtz Association allow companies to outsource costly research activities. This eases the access of developing new products and decreases research and development costs. Numerous spinoffs underline the ability of German research organizations to capitalize on technology.

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 p lan e > Sweden 3 h by Russia Helsinki Norway Stockholm Moscow Tallin Oslo 1,5 h > Estonia Riga Latvia Lithuania Denmark Minsk Copenhagen Vilnius RU Belarus Dublin Ireland Warsaw UK Berlin Kiev London Amsterdam Poland 15 h > Netherlands GERMANY Belgium Ukraine Prague Brussels Czech Republic Luxembourg Slovak Republic Paris Vienna France Austria < h by Hungary Romania Slovenia Zagreb Ljubljana Croatia Bucharest Belgrade BosniaHerzegovina Serbia Sarajevo Montenegro Kosovo ck Italy Podgorica Pristina Tirana Rome Bulgaria Sofia Skopje Ankara Macedonia Albania Madrid Turkey Lisbon Greece Spain Athens Malta Valletta Source: Germany Trade & Invest 2011 Cartography: António Duarte Portugal 24 u tr h Switzerland Moldova Chisinau Bratislava Budapest Bern 2 <1 30 h by train >

12 Innovation Made in Germany Germany invests significantly in fast-developing technologies. With a 2010 R&D investment level of around EUR 70 billion, Germany invested almost the combined innovation expenditures of the UK and France put together. Technology transfer between universities, non-university research organizations, and companies takes places in highly specialized technology clusters located across the country. Individual federal state research budgets often correspond with those of other European countries. Bavaria s R&D spending, for example, significantly exceeds that of Russia while North Rhine-Westphalia invests more than its western neighbor, the Netherlands. R&D Expenditure by Federal State Equivalent Country 2010 DENMARK BALTIC SEA NORTH SEA Schleswig-Holstein Slovenia + Croatia Hamburg Bulgaria + Hungary + Romania Mecklenburg-Vorpommern Romania Bremen Luxembourg POLAND Niedersachsen Norway Berlin Turkey THE NETHERLANDS North Rhine-Westphalia Netherlands Saxony-Anhalt Slovenia Brandenburg Bulgaria + Romania Saxony Poland BELGIUM Hessen Finland Thuringia Hungary LUXEM- BOURG Rheinland-Pfalz Czech Republic CZECH REPUBLIC Saarland Slovak Republic FRANCE Source: Eurostat, Federal Statistical Office 2012 Baden-Württemberg Spain + Portugal Bavaria Russia EUR 69.8 bn EUR 43.6 bn EUR 30.1 bn Germany France UK Cartography: roccomontoya istockphoto.com

13 Our Investment Project Consultancy 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 of Economics and Technology and the Federal Government Commissioner for the New Federal States in accordance with a German Parliament resolution. Notes Germany Trade & Invest, December 2012 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 About Us 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. Photo: istockphoto.com Claudia Dewald Germany Trade & Invest Friedrichstraße Berlin Germany T. +49 (0) F. +49 (0) invest@gtai.com Promoted by the Federal Ministry of Economics and Technology and the Federal Government Commissioner for the New Federal States in accordance with a German Parliament resolution.