david j. warne
DESCRIPTION
Germany:. Gateway to Europe. David J. Warne. Patrick von Wrede – Project Manager. Macao International Trade and Investment Fair 21st October 2005. Invest in Germany , headquartered in Berlin, is the primary contact for companies establishing or expanding their corporate presence in Germany. - PowerPoint PPT PresentationTRANSCRIPT
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Productivity
Industries
Market
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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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Invest in Germany
Invest in Germany GmbHAnna-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 LabourPromotes 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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Why Choose Germany?
InvestmentHigh 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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A recent study by Ernst & Young ranked Germany #1 in several key areas:
Most Attractive Business Location in Europe
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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Market
The Heart of EuropeA 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
46023,100
2.0%
European Union (2005)*
PragueBerlin
ViennaBudapest
Paris
London
Brussels
Stockholm
Madrid
Riga
Helsinki
Athens
Copenhagen Moscow
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Germany 21%
Germany 18%
Germany is the largest market in the European Union by both GDP and population.
Source: Eurostat
Market
Europe’s Leading Economy
Germany 2207.2 82.5United 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 10.5Czech 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) 10266.5 456.4United 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
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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
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
40,32731,852
16,014
Total Highways
11,9788,317 3,344
6,439
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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Source: German Federal Statistics Office
Trade
Demand for German Products
France
Italy
Poland
Russia
Japan
UK
USA
15.0
18.8 17.8 Czech
Republic
61.1
75.3
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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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
€uro Billion (2004)
Germany USA China Japan* France Italy UK Canada Belgium
733
577
658
1226
477
451 43
835
2 330
346 28
128
2 280
371 25
422
0 246
229
0
200
400
600
800
1000
1200
1400L Top Ten Traders (2004)
World Merchandise Trade Imports Exports
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Elec
trica
l Mac
hine
ry &
App
arat
us
Source: German Federal Statistics Office
Main Segments of German TradeGermany is a leading exporter of high quality manufactured products.
* Includes Watches and Clocks
€uro Billion (2004)
Equi
pmen
t
20
40
60
80
100
120
140 Export by Product Segment Import by Product Segment
Med
ical,
Prec
ision
& O
ptica
lIn
stru
men
ts*
Com
mun
icatio
n Eq
uipm
ent
& El
ectro
nic
Com
pone
nts
Chem
icals
& Ch
emica
l Pro
duct
s
Mac
hine
ry &
Indu
stria
l
Mot
or V
ehicl
es &
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
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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
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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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
A Leader in Innovation
Countries with the most EPO patent approvals (2004).
1. Passenger Automobiles2. Mechanical Parts3. Survey and Measurement Equipment4. Electronic Components5. Medicine and Veterinary Products 6. Broadcasting Technology7. Combustion Engines8. Packaging and Logistics9. 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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Source: European Commission, Statistical Annex of European Economy SPRING 2005
Productivity
Reducing Costs through ProductivityHigh 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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Chemical Industry
Source: VCI
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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Source: BITKOM
Largest e-Commerce Market in Europe
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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With a share of over 20%, Germany has the largest ICT market in Europe.
Information and Communications Technology
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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German vehicle production ranks #1 in Europe, and #3 in the world.
Source: VDA 2004 Annual Report
Vehicle Production and Export Destination
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
3.7 3.5 3.0 2.7 2.21.9
5.6
12.0
10.5
Production Abroad by German Manufactures (2004)
UnitsY-o-Y
GrowthPassenger Automobiles 4,220,499 4.6Commercial Vehicles 587,252 34.8
Total 4,807,751 7.6
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TradeMedium-sized defined:
Less than 250 employees with a maximum annual sales of € 50 million or
maximum total assets of € 43 millionA 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
HoldingsDown 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
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Regional Distribution of Investment IncentivesInvestors 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 theCompany
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
* stipulated by the sizes of the parent company and owners’ holdings.
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Global Network of OfficesYour first step toward investment in Germany: www.invest-in-germany.com
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]
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Baden-Württemberg www.bw-invest.de [email protected] Bavaria www.invest-in-bavaria.com [email protected] Berlin www.berlin-partner.de [email protected] 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] 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] 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 AgenciesAs 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
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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Phone: +49-30-206-57-0 Fax: +49-30-206-57-111 e-Mail: [email protected] www.invest-in-germany.com
For More InformationOur web-site accesses a wide array of business information on Germany.
www.invest-in-germany.com Visit Our Website for More Information
Contacts