1 productivity industries market investment incentives contacts trade david j. warne gateway to...
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1
Productivity
Industries
Market
Investment
Incentives
Contacts
Trade
David J. Warne
Gateway to Europe
Macao International Trade and Investment Fair
21st October 2005
Germany:
Patrick von Wrede – Project Manager
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Productivity
Industries
Market
Investment
Incentives
Contacts
Trade
Invest in Germany
Invest in Germany GmbH
Anna-Louisa-Karsch-Str. 2
10178 Berlin, Germany
Invest in Germany, headquartered in Berlin, is the primary contact for companies establishing or expanding their corporate presence in Germany.
Invest in Germany:
Financed by the Federal Ministry of Economics and Labour
Promotes Germany’s advantages as a business location;
Provides target groups with sector specific information;
Connects investors to Germany’s business development networks;
Coordinates site selection proposals and tours throughout Germany.
Phone: +49-30-206-57-100 Fax: +49-30-206-57-111 E-Mail: [email protected] www.invest-in-germany.com
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Productivity
Industries
Market
Investment
Incentives
Contacts
Trade
Why Choose Germany?
Investment Investment
High Quality Specifications
Large Qualified Labor Pool
Business & R&D Cooperation
Stable Legal Environment
Largest Market in Europe
Market Access
Excellent Communication
Systems
Short Delivery Times
State of the ArtFreight Villages
Dense OEM Concentration
Central Location
Efficient Infrastructure
Productivity
Tradition of Industry Success
Kiel
Lübeck Rostock
Bremen
Wilhelmshaven
Erfurt
Wiesbaden
Heidelberg
Freiburg
Mainz
Saarbrücken
Essen
Schwerin Hamburg
Dresden
Leipzig
Hannover
Frankfurt
Nürnberg
Munich
Düsseldorf
Magdeburg
Stuttgart
Bonn Cologne
Berlin Potsdam
A variety of competitive advantages make Germany a premier destinationfor foreign investment.
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Productivity
Industries
Market
Investment
Incentives
Contacts
Trade
A recent study by Ernst & Young ranked Germany #1 in several key areas:
Most Attractive Business Location in Europe
Investment Investment
Domestic Market Transport & Logistics
0
5
10
15
20
25
30
Germany UK France Scandinavia
0
5
10
15
20
25
30
Germany UK France Poland0
5
10
15
20
25
30
35
Germany France UK Netherlands
0
5
10
15
20
25
30
35
Germany UK France Scandinavia
Research & Development ComplexLocal Labor Skills
1#
1# 1#
1#
Reason: Richest Economy& Biggest Consumer
Reason: Central Location& Advanced Infrastructure
Reason: Most Funding & Highest Network Connectivity
Reason: Highest Quality& Maximum Skill-Sets
Source: Ernst & Young, “2005 European Attractiveness Survey”
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Productivity
Industries
Market
Investment
Incentives
Contacts
Trade
Market Market
The Heart of Europe
A central geographic location grants access to all European markets.
24 h
3 h
1.5 h
48 h
24 h
Warsaw
Rome
Source: Eurostat (Queen Tree) * Forecasted
Population (millions)
GDP per Capita (€)
GDP Growth
460
23,100
2.0%
European Union (2005)* European Union (2005)*
Prague
Berlin
ViennaBudapest
Paris
London
Brussels
Stockholm
Madrid
Riga
Helsinki
Athens
Copenhagen Moscow
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Productivity
Industries
Market
Investment
Incentives
Contacts
Trade
Germany 21%
Germany 18%
Germany is the largest market in the European Union by both GDP and population.
Source: Eurostat
Market Market
Europe’s Leading Economy
Germany 2207.2 82.5
United Kingdom 1715.8 59.5France 1648.4 59.9Italy 1351.3 57.8Spain 837.6 42.2Netherlands 466.3 16.3Belgium 283.8 10.4Sweden 279.0 9.0Austria 237.0 8.1Poland 195.2 38.2Denmark 194.4 5.4Greece 165.3 11.0Finland 149.7 5.2Ireland 146.2 4.0Portugal 135.0 10.5
Czech Republic 86.2 10.2Hungary 80.8 10.1Slovakia 33.1 5.4Slovenia 25.9 2.0Luxembourg 25.7 0.5Lithuania 18.0 3.4Cyprus 12.4 0.7Latvia 11.1 2.3Estonia 9.0 1.4Malta 4.3 0.4European Union (25) 10266.5 456.4
United States 9434.0 291.7Eurozone 7601.2 308.4
Country GDP € Billion Population Million(2004) (2004)
GDP in Percent of EU Total (2004)
Percent of Total EU Population (2004)
Rest of European Union
Rest of European Union
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Productivity
Industries
Market
Investment
Incentives
Contacts
Trade
Kiel
Lübeck
Rostock
Bremen
Wilhelmshaven
Erfurt
Potsdam
Wiesbaden
Kassel
Heidelberg
Freiburg
Karlsruhe
Mainz
Kaiserslautern Saarbrücken
Dortmund
Aachen
Essen
Schwerin
Heilbronn
Würzberg
Ulm
Osnabrück
Duisburg
Market Market
Efficient Transportation Infrastructure
Transportation (in KM)
Germany France UK ItalyGermany
301,230357,021 244,820547,030 in sq. km
Freight Rail Networks
Total Railways
17,128
40,327
31,852
16,014
Total Highways
11,978
8,317 3,3446,439
Major Cities Navigable Waterways
Inland Water Transport
7,4505,235 5,374
German Autobahn
Source: Eurostat
Germany’s advanced infrastructure, in the center of Europe, facilitates access to European markets in all directions.
Major Airport
Hamburg
Dresden
Leipzig Halle
Hannover
Chemnitz
Frankfurt
Nürnberg
Munich
Düsseldorf
Regensburg
Magdeburg
Frankfurt (Oder)
Bamberg
Stuttgart
Bonn
Cologne
Berlin
3,228
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Productivity
Industries
Market
Investment
Incentives
Contacts
Trade
Source: German Federal Statistics Office
Trade Trade
Demand for German Products
France
Italy
Poland
Russia
Japan
UK
USA
15.015.0
18.8 18.8 17.8 17.8 Czech
Republic
61.161.1
75.3 75.3
52
.4
52
.4
Exports 733.5
12.964.8
German products find ready markets around the world.
Brazil 21.04.7 China
Germany
(In € Billion, 2004)
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Productivity
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Trade
High quality, competitively priced goods make Germany the largest exporter.
World’s 1 Exporter
Source: United Nations Statistics Division - Commodity Trade Statistics Database, *Ministry of Finance (Japan)
Trade Trade
€uro Billion (2004)
Germany USA China Japan* France Italy UK Canada Belgium
733
577
658
1226
477
451 438
352 330
346
281
282 2
80
371 254
220 246
229
0
200
400
600
800
1000
1200
1400
L Top Ten Traders (2004) World Merchandise Trade
Imports Exports
10
Productivity
Industries
Market
Investment
Incentives
Contacts
Trade
Ele
ctri
cal M
ach
inery
& A
pp
ara
tus
Source: German Federal Statistics Office
Main Segments of German Trade
Germany is a leading exporter of high quality manufactured products.
* Includes Watches and Clocks
€uro Billion (2004)
Eq
uip
men
t
20
40
60
80
100
120
140
Export by Product Segment Export by Product Segment
Import by Product Segment Import by Product Segment
Med
ical, P
reci
sion
& O
pti
cal
Inst
rum
en
ts*
Com
mu
nic
ati
on
Eq
uip
men
t&
Ele
ctro
nic
Com
pon
en
ts
Ch
em
icals
& C
hem
ical Pro
du
cts
Mach
inery
& In
du
stri
al
Moto
r V
eh
icle
s &
Tra
ilers
Major Air Freight Centers
Bremen
Berlin
Leipzig/Halle
Hanover
Frankfurt
Nürnberg
Munich
Stuttgart
Cologne/Bonn Düsseldorf
Hamburg
Erfurt
Rostock
Cuxhaven
Bremerhaven Emden
Kiel
Wilhelmshaven
Greifswald Lübeck
Maritime Freight Ports
Trade Trade
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Productivity
Industries
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Investment
Incentives
Contacts
Trade
Source: UN Export Statistical Division - Commodity Trade Statistics Database * 2003 stats
Premium vehicles Made in Germany are appreciated around the world.
German Automobile Exports
Motor Vehicles Exports in Billion €uro (2004)
Others 23.8%
Switzerland 2.4%Austria 2.6%Netherlands 2.8%
Japan 3.5%
Belgium 6.2%
Spain 7.0%
France 7.2%
Italy 10.3%
UK 14.5%
USA 19.7%
Trade Trade
DestinationGerman
Automobile Exports
In Percent(2004)
0
10
20
30
40
50
60
70
80
90
6.5 6.8
18
.0
19
.8
20
.2
23
.1 28
.3
29
.5
68
.4*
80
.2
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Productivity
Industries
Market
Investment
Incentives
Contacts
Trade
World class human resources and a superlative R&D infrastructure make Germany fertile ground for innovation.
Source: European Patent Office (EPO), and German Patent Office *generation, conversion, and distribution
Productivity Productivity
A Leader in Innovation
Countries with the most EPO patent approvals (2004).
1. Passenger Automobiles
2. Mechanical Parts
3. Survey and Measurement Equipment
4. Electronic Components
5. Medicine and Veterinary Products
6. Broadcasting Technology
7. Combustion Engines
8. Packaging and Logistics
9. Data Analysis
10. Electrical Energy Supply*
Top 10 German Patent Segments (2004)
USA24%
Italy4%
France7%
Japan18%
Germany23%
Others13%
Netherlands3%Switzerland
4%
UK4%
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Investment
Incentives
Contacts
Trade
Source: European Commission, Statistical Annex of European Economy SPRING 2005
Productivity Productivity
Reducing Costs through Productivity
High productivity rates are steadily lowering unit labor costs.
Real Unit Labor Costs of Entire National Economies
Index (1995=100)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 200592
94
96
98
100
102
104
France
USA
Germany
UK
Italy
Netherlands
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Productivity
Industries
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Investment
Incentives
Contacts
Trade
Chemical Industry
Source: VCI
Industries Industries
The German Chemical Sector is Europe’s industry leader.
1995 2000 2004 2005*Intra-EU Share %
Intra-EU Rank
Sales (billion €uro) 112.3 135.0 142,1 148,5 24.3 #1
Production (% change) - +4.4 2.5 2.5 - -
Employment (in 1000) 536 470 445 443 28.4 #1
Investment (billion €uro) 5.8 6.8 5.9 5.9 27.2 #1
Exports (billion €uro) 63.8 76.6 99.4 106.4 22.2 #1
Imports (billion €uro) 42.0 52.7 66.8 70.8 18.7 #1
R&D Expenditures (billion €uro) 5.3 7.1 7.7 - 21 #1
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Productivity
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Contacts
Trade
Source: BITKOM
Largest e-Commerce Market in Europe
Industries Industries
Business to Business and Business to Customer In Billion €uro (2004)
22.3
4.0
8.6
11.9
22.6
33.3
65.3
85.7
180.3
97.7
0 20 40 60 80 100 120 140 160 180 200
Spain
Italy
France
UK
Germany
B2B
B2C
Increasing numbers of internet users, acceptance of online payment-billing, and high online security standards promise continued e-Commerce growth.
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Productivity
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With a share of over 20%, Germany has the largest ICT market in Europe.
Information and Communications Technology
Industries Industries
0
5
10
15
20
25
Germany Netherlands Spain Italy France UK
Source: EITO
21.2
5.26.1
11.0
14.9
20.4
Six Largest European ICT Markets Market Share in Percent (2004)
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Productivity
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Trade
German vehicle production ranks #1 in Europe, and #3 in the world.
Source: VDA 2004 Annual Report
Vehicle Production and Export Destination
Industries Industries
10 Largest Auto Producers In Million Units (2003)
0
2
4
6
8
10
12
14
USA Japan Germany China France SouthKorea
Spain Canada Brazil UK
5.1
3.73.5
3.02.7
2.21.9
5.6
12.0
10.5
Production Abroad by German Manufactures (2004)
UnitsY-o-Y
Growth
Passenger Automobiles 4,220,499 4.6
Commercial Vehicles 587,252 34.8
Total 4,807,751 7.6
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Productivity
Industries
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Incentives
Contacts
Trade
Medium-sized defined:
Less than 250 employees with a maximum annual sales of € 50 million or
maximum total assets of € 43 million
A large company may not hold more than a 25% share in the firm
Generous incentive packages reduce investment costs in Germany.
Eastern German States
28%
47%
25%25%
25%
50%
Western German States
Grants
Gov. Loans, Guaranties, and
Holdings
Down Payment of the Investor
Large Companies may receive:
grants up to 35%
in Eastern Germany and
up to 18 %
in Western Germany
For Small- and Medium-Sized Companies these packages can total up to:
Investment Incentives
Source: BMWA, Invest in Germany
Small-sized defined:
Less than 50 employees with a maximum annual sales of € 10 million or maximum total
assets of € 10 million
A large company must hold less than a 25% share in the investing firm
Incentives Incentives
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Productivity
Industries
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Regional Distribution of Investment Incentives
Investors may profit from a variety of support programs, which vary by region.
KEY
Incentive Region A
Incentive Region D
Incentive Region B Incentive Region C
100 KM
Other state and local incentives are available across all of Germany to small- and medium-sized* businesses.
Source: BMWA Database
Incentive Region E
0%18%28%35%
Large Companies
up to:
15%
7.5%
28%
28%
43%
43%
50%
50%
Small up to:
Medium up to:
DCBA
Region
Size
of the
Company
0%
15%
7.5%
E
Kiel
Lübeck Rostock
Bremen
Wilhelmshaven
Erfurt
Potsdam
Wiesbaden
Kassel
Heidelberg
Freiburg
Karlsruhe
Mainz
Kaiserslautern Saarbrücken
Dortmund
Aachen
Schwerin
Würzberg
Osnabrück
Duisburg
Hamburg
Dresden
Leipzig
Hannover
Chemnitz
Frankfurt
Nürnberg
Munich
Regensburg
Magdeburg
Frankfurt (Oder)
Bamberg
Stuttgart
Bonn
Cologne
Berlin
Incentives Incentives
* stipulated by the sizes of the parent company and owners’ holdings.
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Productivity
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Contacts
Trade
Global Network of Offices
Your first step toward investment in Germany: www.invest-in-germany.com
Contacts Contacts
Head-QuartersInvest in Germany GmbH
Mr. Gerhart Maier & Dr. Urda Martens-Jeebe Managing Directors
Anna-Louisa-Karsch-Strasse 2D-10178 Berlin GermanyPhone: +49-30-206 570
Fax: +49-30-206 571 11E-mail: [email protected]
Invest in Germany LLCMr. Michael RassmannU.S. Representative345 Park AvenueNew York, NY 10154 USAPhone: +1-212-454-1905Fax: +1-212-454-3220E-mail: [email protected]
Invest in Germany LLCMr. Kenneth BremerU.S. Representative Central Region200 South Wacker Drive, 3Chicago, IL 60606 USAPhone: +1 312 596 8503Fax: +1 312 596 8692E-mail: [email protected]
Invest in Germany LLCMs. Angelika GeigerU.S. Representative Western Region201 California St., Suite 450San Francisco, CA 94111Phone: +1 415 248-1246Fax: +1 415 627-9169E-Mail: [email protected]
Invest in GermanyMs. Ye Tong
China Representative29 F POS Plaza
1600 Century Avenue, PudongShanghai, China
Phone: +86-21-5081-2266Fax: +86-21-5820-6408
E-mail: [email protected]
Invest in GermanyMr. Iwami Asakawa
Japan RepresentativeSanbancho KS Bldg. 5F
2-4 Sanbancho, Chiyoda-ku102-0075 Tokyo, Japan
E-mail: [email protected]
Invest in GermanyEdgar Horny
South America Representative R. Verbo Divino 1488 - 3º Andar04719-904 São Paulo-SP, Brasil
Tel. +55 11 5187 5166Fax. +55 11 5181 7013
E-mail: [email protected]
21
Productivity
Industries
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Incentives
Contacts
Trade
Baden-Württemberg www.bw-invest.de [email protected]
Bavaria www.invest-in-bavaria.com [email protected]
Berlin www.berlin-partner.de [email protected]
Brandenburg www.zab-brandenburg.de [email protected]
Bremen www.big-bremen.com [email protected]
Hamburg www.hamburg-economy.de/ [email protected]
Hessen www.hessen-agentur.de [email protected]
Lower-Saxony www.ipa-niedersachsen.de [email protected]
Mecklenburg-Vorpommern www.gfw-mv.com [email protected]
North Rhine-Westphalia www.gfw-nrw.de [email protected]
Rhineland-Palatinate www.isb.rlp.de [email protected]
Saarland www.gwsaar.com [email protected]
Saxony www.wfs.saxony.de [email protected]
Saxony-Anhalt www.wisa.de [email protected]
Schleswig-Holstein www.wtsh.de [email protected]
Thuringia www.invest-in-thueringen.org [email protected]
www.iic.de [email protected]
State Investment Agencies
As the federal investment promotion agency, Invest in Germany works closely with the 16 state business development authorities:
Eastern Germany *
*Industrial Investment Council Identifies business opportunities in the “New German States” for foreign investors.
Contacts Contacts
HAMBURG
BREMEN
BADEN-WÜRTTEMBERG
BAVARIA
SAXONY
SAXONY-ANHALT
SCHLESWIG-HOLSTEIN
THURINGIA
MECKLENBURG-VORPOMMERN
HESSEN
LOWER SAXONY
NORTH RHINE-
WESTPHALIA
RHINELAND- PALATINATE
BERLIN
SAARLAND
BRANDENBURG
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Productivity
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Trade
Phone: +49-30-206-57-0 Fax: +49-30-206-57-111 e-Mail: [email protected] www.invest-in-germany.com
For More Information
Our web-site accesses a wide array of business information on Germany.
www.invest-in-germany.com Visit Our Website for More Information
Contacts Contacts