SURVEY SHOWS GERMAN COMPANIES IN THE US PROFIT FROM ROBUST MARKET SIZE AND CUSTOMER DEMAND
The German American Chambers of Commerce (AHK USA) present the key findings of the 2023 German American Business Outlook (GABO), surveying 201 German subsidiaries in the US about their 2023 business prospects. The results were presented in Atlanta and Chicago on February 8. This year’s respondents represent industries including automotive (41%), industrial manufacturing (37%), financial and professional services (25%) and more. German companies view the US as an attractive investment location due to market size & customer demand, proximity to their customer base, and market stability. Government incentives and lower energy costs, did not prove to be significant drivers for increased US investment.
German companies view the US as an attractive environment for future investment; 93%plan to grow their US investments by 2025
64% of German companies in the US predict growth of the US economy in 2023; 85%expect their net sales to grow
Skilled workforce remains #1 challenge for German companies; inflation is another topconcern
85% of the German companies surveyed expect their net sales to grow; 30% expect strong to very strong growth in 2023. 93% of the respondents plan to grow their company’s investments in the US by 2025; 72% in 2023. 22% plan to invest over 10 million USD by 2025. Among the top investment areas within the next three years, digital transformation dominated, with machinery/new office facilities following closely behind. Workforce and inflation top two challenges for German companies in the US Building a sustainable workforce pipeline remains the #1 challenge for German subsidiaries in the US for the second year in a row. 78% say they experience difficulties attracting skilled workers. However, 53% of the surveyed companies plan to grow their workforce in 2023; 82% plan to do the same by 2027. Despite recent news of layoffs across multiple industries, only 5% of German companies predict their workforce will decrease in 2023. Compared to last year’s GABO results, inflation overtook supply chain as the second biggest challenge for German companies in 2023. German companies call for US government support Over 5,600 German companies invest ~$637 billion in the US market (Representative of German Industry and Trade, September 2022). In the next congressional sessions and election cycles, German companies in the US would like the US government to address inflation, free trade agreements, immigration, reduction of bureaucracy/regulations, and apprenticeship programs. Crispin Teufel, Chairman of the German American Chambers of Commerce, says, “I am proud to highlight the strong economic partnership between our two countries. Our commitment to innovation, growth and mutually beneficial trade agreements has proven to be a recipe for success. Together, Germany and the United States continue to drive economic progress and competitiveness on a global scale.” Full press release: https://ahk-usa.net/gabo Visit GACC South www.gaccsouth.com Source: German American Chambers of Commerce (AHK USA)