economic development opportunities · german investment today $0 $5,000 $10,000 $15,000 $20,000...
TRANSCRIPT
Economic Development OpportunitiesTrends, Progress, & the Future of European Investment
1. Europe’s Economy
2. Foreign Direct Investment
3. Industry Trends – Past, Present & Future
4. Will European Businesses Invest ?
5. Expectations of your Communities
6. How to Prepare your Communities
7. German Investment Today
8. Q & A
Overview
Europe’s Economy
Source: Eurostat, 2013
GDP Growth
EU
USA
Europeans & Americans Benefit from FDI
Foreign Direct Investment
Source: Eurostat, 2013
German Investment - USA
Source: U.S. Bureau of Economic Analysis, 2013
Automotive Assembly Trends
1950
Automotive Assembly Trends
1960
Automotive Assembly Trends
1980
Automotive Assembly Trends
1990
Automotive Assembly Trends
2000
Automotive Assembly Trends
2010
Industrial Trends
Present and Future Industrial Trends
Drivers for Industrial Migration
1. Operating Costs• Wage rates; logistics; taxes; utilities
2. Infrastructure• Roads; bridges; rail; ports
3. Business Environment• Work Force
• Unions
4. Quality of Life
Why Europeans Invest
• Following customers into North America
• Cost competitiveness (logistics; wage rates)
• Matching currency US$ Revenues and Costs
• “Window of Opportunity” for products
• Seeking technology or innovation
• Lack of investment opportunities elsewhere
Your Expectations
• Large German companies• Large employers; Major capital investment
405,000 employees
300,000 employees
180,000 employees
110,000 employees
Reality
• The German Mittelstand• Mid-sized employers; Moderate capital investment
4,000 employees
600 employees
560 employees
550 employees
Preparing your Community
How can you prepare your community?
• Understand the Business Culture
• Understand the Customer
• Understand the Customer’s Expectations
• Be Yourself
Business Culture
Industrial Tradition• Social Market Economy• German Mittelstand – Hidden Champions Product + Innovation Liquid + Low-risk
• Engineering Focus Product Quality
Values• Prudent Business Behavior• Embrace Stability• Direct Communication• Process-driven
The Customer
Americans seen as Salesmen• Show + Tell Effect• Biggest, Best, # 1…
The German CEO• Chief Engineer + Business Administrator + Owner• Conservative Planner• Cautious decision-maker
German Mittelstand• Family-owned; Family Decisions• Value Preservation• Focus on Quality
Customer’s Expectations
Start-up & Operating Costs• Lease quotes; construction costs
• Utility cost quotes
• Corporate taxes; property tax
American Work Force• Mobile; high turnover
• Productivity issues
• Recruiting & Interviewing
• HR Benefits
Tips
• Be Prepared !
• Stick to the Facts
• Keep your Presentation Short
• Avoid discussion of Politics, Religion or Sex
• Every Community Participant is an Ambassador
• Eliminate Stereotypes
German Investment Today
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Chemicals Plastics andrubber products
Primary andfabricated metals
Machinery Transportationequipment
OtherManufacturing
Investment in Manufacturing Assets in USAGerman Subsidiaries 2010 ($ Millions)
Source: Bureau of Economic Analysis, 2013
Q & A
QUESTIONS & ANSWERS