gabo 2019 - gabc boston€¦ · gabo. 2019. growth expectation for your business in 2019....

German American Business Outlook 2019

#GABO2019

GABO2019

Growth expectation for your business in 2019#GABO2019

39%

52%

9%

Strong growth > 3% Flat to moderate growth 0% - 3%

Contraction < 0% growth

Expectations for individualbusinesses are still positive but 9% expect a contraction for their own business in 2019, the highest since emerging from the recession.

SURVEYGROWTH EXPECTATION FOR YOUR BUSINESS IN 2019

Expectations for individual businesses are still positive but 9% expect a contraction for their own business in 2019, the highest since emerging from the recession.

Growth expectation for the US economy in 2019#GABO2019

10%

87%

3%

Strong growth > 3% Flat to moderate growth 0% - 3%

Contraction < 0% growth

While the generaloutlook for the overalleconomy is still very positive, 3% of companies expect a contraction of the US economy in 2019.

GROWTH EXPECTATION FOR THE US ECONOMY IN 2019

While the general outlook for the overalleconomy is still very positive, 3% of companies expect a contraction of the US economy in 2019.

Strategic Actions: M&A and Diversification#GABO2019

9%

20%

0% 5% 10% 15% 20% 25%

M&A executed in 2018 M&A planned in 2019

37%

50%

0% 10% 20% 30% 40% 50% 60%

Diversification executed in 2018 Diversification planned for 2019

STRATEGIC ACTIONS: M&A AND DIVERSIFICATIONStrategic Actions: M&A and Diversification#GABO2019

9%

20%

0% 5% 10% 15% 20% 25%


37%

50%

0% 10% 20% 30% 40% 50% 60%


Top reasons for future investment in the US#GABO2019

35%

71%

80%

Relative market stability

Proximity to customer base

Customer demand for goods / services The US market’s attractiveness for German subsidiaries for future investment is based on customer demand, proximity to the customer base and the relative market stability.

TOP REASONS FOR FUTURE INVESTMENT IN THE US

The US market’s attractiveness for Germansubsidiaries for future investment is based on customer demand, proximity to the customer base and the relative market stability.

Workforce and Visa challenges#GABO2019

22%

41%

24%

13%

Degree of difficulty in attracting skilled labor

Always Very often Sometimes Rarely

87% of German subsidiaries still have difficulties attracting skilled labor. This highlights the need forpipelines of qualified employees, for example through apprenticeship programs.

WORKFORCE AND VISA CHALLENGES PART 1

87% of German subsidiaries still have difficultiesattracting skilled labor. This highlights the need forpipelines of qualified employees, for examplethrough apprenticeship programs.

Workforce and Visa challenges#GABO2019

22%

36%

39%

3%

Ease of receiving work visas 2017

Strongly worsened Slightly worsened No change Positive

41%

37%

19%3%



WORKFORCE AND VISA CHALLENGES PART 2Workforce and Visa challenges#GABO2019

22%

36%

39%

3%



41%

37%

19%3%



9%

39%

52%

Strong growth > 3%Contraction < 0% growth

Flat to moderate growth 0% - 3%

3%

87%

10%

Strong growth > 3%Contraction < 0% growth

Flat to moderate growth 0% - 3%

20%

9%


50%

37%


80%

71%

35%

Customer demand for goods / services

Proximity to customer base

Relative market stability

13%

24%

22%

41%

Always Very often Sometimes Rarely

3%

39%22%

36%

Strongly worsened Slightly worsened No change Positive Strongly worsened Slightly worsened No change Positive

3%

37%

41%19%

Importance of open markets#GABO2019

53%

72%

2017

2018

72% of surveyed companies state open markets as very important, an increase of 19% over last year.

An overwhelming 90% stated that open markets are rather or very important to their business.

IMPORTANCE OF OPEN MARKETS

72% of surveyed companies state open markets as very important, an increase of 19% over last year.

Impact of new tariffs and trade conflicts#GABO2019

29%

54%

13%4%

Impact of tariffs imposed by the US on China

Very negative Negative No impact Positive

While only 39% of German subsidiaries in the US reported sourcing products from China, a staggering 83% of these companies are negatively impacted by the tariffs imposed by the US on China.

IMPACT OF NEW TARIFFS AND TRADE CONFLICTS PART 1

While only 39% of German subsidiaries in the USreported sourcing products from China, a staggering 83% of these companies are negatively impacted by the tariffs imposed by the US on China.

Impact of new tariffs and trade conflicts#GABO2019

31%

32%

23%

14%

Impact on business by steel/aluminium tariffs


19% of the surveyed German subsidiaries process steel and/or aluminium. Of these, 64% are negatively impacted by the new tariffs on steel and aluminium.

IMPACT OF NEW TARIFFS AND TRADE CONFLICTS PART 2

SURVEY CONTINUED

An overwhelming 90% stated that open markets are rather or very important to their business.

19% of the surveyed German subsidiariesprocess steel and/or aluminium. Of these, 64%are negatively impacted by the new tariffs on steel and aluminium.

EXECUTIVE SUMMARY

Only 3% of surveyed companies predict a contraction of the US economy, however, 9% see a contraction for their own business, which is the highest since the recession.

A large increase of German subsidiaries are planning diversification of their business and M&A as strategic actions in 2019.

One major challenge continues to be finding skilled labor, and difficulties in obtaining work visas have increased to of surveyed companies.78%

90% of respondents say open markets are rather or very important to their business.

2018

2017 53%

72%


54%

13% 4%29%


32%

31%14%

23%

ABOUT US

GACCs

The German-American Chambers of Commerce (GACCs) in Atlanta, Chicago, Detroit, Houston, New York, Philadelphia, Pittsburgh and San Francisco all work together under the network of the GACCs. With approximately 2,500 members and an extensive national and international business network, the GACCs offer a broad spectrum of activities and services. Other German-American organizationsand chapters are affiliated with the GACCs.

The German Chamber Network (AHKs) is closely connected to the Chambers of Industry and Commerce (IHKs) in Germany. The umbrella organization of the IHKs is the German Association of Chambers of Industry and Commerce (DIHK), which speaks for 3.6 million business enterprises in Germany, coordinating and supporting the AHKs.

GLOBALLY CONNECTEDAHKs provide experience, connections, and services worldwide through 140 locations in 92 countries. The service portfolio of the AHKs is unified worldwide under the brand name DEinternational. The AHKs cooperate closely with the foreign trade and inward investment agency of the Federal Republic of Germany—Germany Trade & Invest (GTAI).

www.ahk-usa.com

RGIT

NOTES

The Representative of German Industry and Trade (RGIT) communicates the interests of German business on behalf of its principals, the Federation of German Industries (BDI) and the Association of German Chambers of Commerce and Industry (DIHK) in Washington, DC. Through its actions, RGIT highlights the importance of German business in the U.S. and encourages the further deepening of the U.S. and Germany’s already close economic ties.

This material is distributed by the Representative of German Industry and Trade (RGIT) on behalf of the Federation of German Industries (BDI) and the Association of German Chambers of Commerce and Industry (DIHK). Additional information is available at the Department of Justice, Washington, DC.

www.rgit-usa.com

CONTACT

Mark TomkinsPresident & CEOT +1 312 [email protected]

GACC MIDWESTDietmar RiegPresident & CEOT +1 212 [email protected]

GACC NEW YORKStefanie ZiskaPresident & CEOT +1 404 [email protected]

GACC SOUTH

Kristian WolfPresident & CEOT +1 415 [email protected]

GACC WEST

www.gaccwest.com

DANIEL ANDRICHPresident & CEOT +1 202 [email protected]

RGIT WASHINGTON

www.rgit-usa.com

www.gaccmidwest.org www.gaccny.com www.gaccsouth.com

gabo 2019 - gabc boston€¦ · gabo. 2019. growth expectation for your business in 2019....

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