Germany –
Opportunities and
Potentials
 Maribor
 27. November 2014
Why Germany?
Germany at a Glance
Key Sectors
Slovene German Business Relations
Who we are?
Why Germany?
Germany at a Glance
Key Sectors
Slovene German Business Relations
Who we are?
Germany
From “the sick man of Europe”
(The economist, 19.5.2005)
To “Europe´s engine!”
(The economist, 11.3. 2010)
To “Germany´s Economic Model: what it offers to
the world”
(The economist, 14. 4.2012)
Germany:
One of the most productive economies in OECD
Vocational education
More important still to Germany's
industrial strength is the country's
education system.
Lessons learned
Mittelstand and family business:
the backbone of the German industry
Successful model of export and investment support sheme
Germany:
Strengths of the market
Market size
Germany has the largest economy
in Europe and is Europe´s largest
domestic market
Easy access
English widely spoken and
accepted as business language
Situated at the heart of Europe
with instand access to established markets
and emerging markets in Europe
DoingWhy
business
in Germany
Germany?
Mario Ingo Soos
Deutsche Botschaft Laibach
How foreign investors view Germany’s
future
• 54% expect Germany to become even more attractive to
investors over the next three years
• Becoming increasingly attractive for innovation activities and
highly skilled talent
• How surveyed investors see Germany in the year 2020:
Global leadership in environmental technology
Centre for research and development
Model for entrepreneurially minded society
Source: Ernst & Young
Germany after the crisis
„
“ Which EU-countries will benefit the most from the crisis from your point of view?”
Germany
France
Poland
Great
Britain
Switzerland
Bright outlook for investors
in Germany
Russia
Others
Nobody
Not specified
Figures in %
Source: Ernst & Young
9
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High labour productivity: opinions
from the business world
Germany’s level of training and process and product quality make it
Europe’s No. 1 investment location for US companies
(US Chamber of Commerce, Business Barometer 2014)
82% of foreign-company managers surveyed rate German workers’
skill levels as attractive
(Ernst & Young, Germany as a Business Location 2010)
“Despite comparatively high wage costs, our German locations are
among the most productive worldwide thanks to the workers’
outstanding skill levels and motivation.” (Rolls-Royce)
Germany is the most attractive Investment location in Europe
(US Chamber, Business Barometer 2014)
“Invented in Germany”
High Tech and Innovation:
Source: GTaI
Picture: Hahn Meitner Institute
Berlin
Innovation clusters: close cooperation between research institutes, the
business sector and universities
2008: more than 11,000 European patents (twice as many as France and the
United Kingdom combined)
EU leader in patents that are also registered in the EU, USA and Japan (“triad
patents”)
German business sectors – global leaders
in terms of market size and growth potential:
information and communication technology
chemicals and plastics
transport and logistics
photovoltaics
medical technology
Why Germany?
Germany at a Glance
Key Sectors in Germany
Slovene German Business Relations
Who we are?
Germany at a glance
• Bruises in general economy …..
•
… still covered up by structural strengthts
• Domestic economy intact spending instead of
saving
• Headwinds from exports
• Consumption resisting downturn
Germany at a glance
• Construction: moving down a gear
• German exports are still on a high level
• “European home market” are making major
contribution but still stuttering
• Product innovation gaining in importance
• Skilled employees hart to find even during
downtown
Germany at a glance
Indicators
(Percentage change on preceding year)
GDP (real)
GDP by expenditure (real):
Private consumption expenditure
Machinery and equipment
Construction
Domestic Demand
Export (Mrd. EUR)
-Growth rate
Import (Mrd. EUR)
-Growth rate
GDP per Head (EUR)
Unemployment rate in %
Total employment
Quelle Commerzbank, Statistisches Bundesamt Deutschland
2012 2013
0,7
2014
Forecast
0,42,1
0,8
0,91,5
-4,0 -2,24,0
-1,4 -0,34,0
-0,3
0,71,9
1.096 1.0941.138
3,2
0,64,1
906 896941
1,4
1,34,7
32.280 33.355/
6,8
6,96,7
1,1
0,60,6
2015
1,7- 2,0
1,7
6,3
3,7
2,1
4,6
5,1
/
6,6
0,3
Germany at a glance
Share of Total GDP and Population in the European Union 2013
GDP (in EUR Share of Total Population Share of Total
billion)
GDP (EU-27) (in million) Population (EU-27)
GERMANY
France
UK
Italy
Spain
Netherlands
Sweden
Poland
USA
Japan
EU-27
Eurozone
2.738
2.059
1.908
1.560
1.022
603
420
390
10.957
4.122
13.075
9.170
21%
15,7%
14,6%
12%
7,8%
4,6%
3,2%
3%
80,5
65,6
63,9
59,7
46,7
16,8
9,6
38,5
309
128
501
331
16%
13%
12,6%
11,8%
9,2%
3,3%
1,9%
7,6%
Why Germany?
Germany at a Glance
Key Sectors in Germany
Slovene German Business Relations
Who we are?
Key Sectors in Germany
• Automotive
• Machinery & Equipment
• Metal and Metal Processing Industry
• Food & Beverage, Organic Food
• ICT Industry
• Energy & Environmental Industry
• Construction Industry
Growth Industries
Renewable Energies & Resources
Chemicals & Healthcare
- Photovoltaics
- Chemical Industry and Polymers
- Energy Efficiency
- Renewable Resources and Bioenergy
- Chemicals-Related Process Industry
- Energy Storage and Fuel Cells
- New Materials/ Composite Materials
- Solar Thermal Energy
- Red Biotech
- Medical Devices Industry
- Geothermal Energy
- Pharmaceuticals Industry
- Wind Energy
- Waste to Energy, Recycling and Sustainable
Water Resource Management
Mechanical & Electronic Technologies
Service Industries
- Consumer Goods/Retail
- Electronics and Microtechnology
- Food and Beverages
- Machinery and Equipment
- Information and Communications Technology
- Transportation and Technologies
- Applied Sciences and Technology Transfer
- Business Services
- Transportation and Logistics
- Tourism
Germany Trade & Invest
Emerging Industries
Energy Efficiency Sector
Creating the Future for a Clean Environment
Industry & Market Numbers
• market leader in energy efficiency
technologies
• turnover of about EUR 67 billion per year
• double-digit growth rates expected in coming
years
• 1/3 of companies active in the sector realize
profit margins of over 10%
• average workforce growth of about 15% per
year
Construction industry
• The construction industry is one of the most important
sectors of the German economy
• Germany’s Construction Industry: Strong Growth Followed by
Stagnation
• Construction Work on Existing Buildings Dominates
• Total market volume: 312,7 bill EUR
• Residential construction: 179 bill EUR
• Energy related modernization: 57,5%
Safety & Security Industry
"Made in Germany" for Future Security
Industry & Market Numbers
•
•
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•
•
Largest market in Europe
High market potential with industry turnover of 20.3 billion Euro
Industry forecast to record 55% growth by 2015
IT security will grow by 124% within the next six years
Identification, authentication, and biometrics revenue forecast to
increase by 87% by 2015
• Market for protection technologies against theft, burglary, and assault
expected to grow by 33% through 2015
• Record IT security hardware and software spending of 2.3 billion Euro
ICT Industry
Germany's ICT Industry: Shaping Europe’s Digital Future
Industry & Market Numbers
•
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•
Europe’s largest ICT market in terms of revenue volume
(20 percent of total EU market volume).
With 5.5% global market share, German ICT industry is
ranked fourth worldwide.
Turnover of EUR 137 billion
Germany’s ICT industry employs a workforce of around
850,000
ICT Industry
Germany's ICT Industry: Shaping Europe’s Digital Future
Growth Areas
IT Security: The market for IT
security is growing due to
steadily increasing risk
potential
Cloud Computing: There is
significant international demand
for secure and cost-effective cloud
solutions and services
Smart Grids: Increasing importance of sustainable
energy supply offer great opportunities for smart
grid adoption and ICT solutions for smart grid.
Automotive Industry
Driving Performance through Technology
Industry & Market Numbers
• Europe's largest automobile market
• Average manufacturer and supplier turnover of more than EUR
300 billion
• 30 final assembly plants with a production capacity of over one
third of total automobile production in Europe
• The German auto industry invest annually EUR 19.6 billion in
R&D
• 3,650 patents per year (= 10 patents a day
Automotive Industry
Market Potential
• Germany has a very competitive auto parts market with
many domestic and foreign manufacturers
• Suppliers are mostly specialized
• New Automotive Deal
• Consolidation process-oriented sectors
• Just in Time  Just in Sequence
• After sales market is expected to grow in the coming years
Automotive Industry
Smart Mobility
Electric mobility is the technology of
the future but existing technologies
must be optimized
Opportunities for Automotive Suppliers
The demand for new technology for this market is enormous
Vehicle manufacturers require core components such as batteries
and electric motors for electric.
Machinery & Equipment Industry
Market Leadership Powered by German Engineering
Industry & Market Numbers
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Annual turnover 173 billion Euro
Growth rates between of 7 and 12 percent
Domestic market: 87 billion Euro
Highly innovative sector producing 28% of the worlds
mechanical engineering patents
• Technical fields with high import rates: drive technology
(10.7%), air technology (9.3%), valves and fittings (6.7%),
construction equipment (6.2%)
Machinery & Equipment Industry
Market Potential
• Imports: EUR39.1 billion
• One of the fastest growing industry sectors in Germany
• High domestic demand from industries like the automotive,
electronics, chemicals, food as well as the renewable
energies sector
• very. attractive to foreign companies seeking to sell their
high-tech products and components abroad
Metal & Metal Processing Industry
Industry & Market Numbers
• Metal and metal products imports totaled EUR 68.7
billion
• Sixty two percent of the imported metal products came
from the European Union
• In 2012 15 million tons of steel were processed in the
production of metal products
• The non-ferrous metal industry registered sales of EUR
43.5 billion i
Plastics Industry
Germany is Europe's No.1 Plastics Location
Industry & Market Numbers
• Leadership in plastics production and consumption, export and
import, and in investment in fixed assets and expenditure in
R&D
• Turnover EUR 88 billion, 7,200 companies, 440,000 employees
• About 70 application-oriented university and non-university
research institutes in the field of polymer and materials research
in close collaboration with the plastics industry
• Over 40 regional plastics clusters, innovative networks and
competence centers
Electronics & Microtechnology
Your Market for Next-Generation Technology
Industry & Market Numbers
•
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Turnover of 165 billion Euro
Market is estimated to grow to 180 billion Euro
Fourth largest industry segment in Germany by revenue
12 billion Euro R&D expenses annually
Microelectronics is one of our fastest-growing industry sectors
market potential for automotive and industry electronics
Energy & Environmental Technologies
Bioenergy Industry
Solar Industry
Wind Industry
Environmental Technologies
Closed Loop Recycling and Sustainable Water
Technologies
Industry & Market Numbers
Environmental technologies is one of the most important economic
sectors in Germany
Turnover: 85 billion Euro in
German World Market Share for Recycling Technology: 24% (Material
Separation devices have 64% of the world market)
More than 320,000 Employees
Consumer Goods & Retail
Large Markets Create Major Opportunities
Industry & Market Numbers
• Europe's leading consumer market with 82 million affluent
consumers
• Private spending remained increasing
• Private spending in the leisure and apparel segments is
permentently growing due to higher private income
• Germany's consumer electronics market fasted growing
segment
Food & Beverage Industry
Supplying the Full Spectrum of Consumer Needs
Industry & Market Numbers
• Germany is Europe's second largest food producer with sales
of 149.5 billion Euro
• Germany is a net importer of food & beverage products
• Largest sector sub-segments: meat (22.7%), dairy (15.4%),
confectionery food (9.4%), and baked goods (8.7%)
• Major national and international players, including Dr. Oetker
Group, Südzucker AG, Vion Food Group, Kraft Foods
Deutschland GmbH, Nestlé, etc
Food & Beverage Industry
Supplying the Full Spectrum of Consumer Needs
Market trends
• High demand for health and wellness as well as functional
food products to prevent or overcome conditions including
diabetes, high blood pressure and cholesterol
• Movement for organic food and “free of” foods e.g. lactose
and gluten-free products
• Driving demand for highly convenient foodstuffs including
ready-to-eat meals, frozen foods, desserts, and baked goods
• Ethnic foods, beauty foods and fair trade products
Market Potential
• Large size of the German market in the food and
beverage sector are very attractive to exporters worldwide
• German consumers are generally well informed.
They expect high quality and low prices for their food and
beverage products
Market Access
• The German food & beverage industry is highly fragmented and
competitive.
• Exporting companies should be aware that product packaging is
very important to German consumers since they are highly
environmentally conscious
• Manufacturers, importers, distributors and retailers must make
sure that their packaging materials for their food products
comply with the EU's and Germany's domestic regulations in
terms of recycling and disposal. There are several dual system
companies licensed in Germany offering various waste disposal
schemes
Why Germany?
Germany at a Glance
Slovene German Business Relations
Fit for Business
How to find a partner?
Slovenian-German Economic Relations
German-Slovenian foreign trade balance (in 1000 EUR)
5,000,000
4,000,000
3,000,000
Export to
Germany
2,000,000
Import from
Germany
1,000,000
0
2005
2006
2007
2008
2009
-1,000,000
Source: Statistical Office of the Republic Slovenia
2010
2011
2012
2013
2013
1000 EUR
Country
Import share
(%)
Total
2013
1000 EUR
Import
100 22.196.684
Country
Total
Export
Export
share (%)
21.627.647
100
Germany
19,12
4.244.165
Germany
4.449.301
20,57
Italy
15,63
3.469.033
Italy
2.493.537
11,53
Austria
11,36
2.520.667
Austria
1.843.978
8,53
Croatia
4,80
1.064.788
Croatia
1.441.499
6,67
France
4,34
963.287
France
1.153.853
5,34
Netherlands
3,01
667.294
Russia
1.018.784
4,71
Russia
2,03
451.929
Serbia
664,842
3,07
Serbia
1,86
411.929
Hungary
631.890
2,92
Source: Statistical Office of the Republic Slovenia
Slovenian-German Economic Relations
Market share of German federal states in
Slovenian imports from Germany
5%
8%
18%
Baden-Württemberg
5%
Bayern
Nordrhein-Westfalen
16%
17%
Market share of German federal states in
Slovenian exports to Germany
7%
5%
8%
31%
Hessen
Niedersachsen
Neue Bundesländer
Baden-Württemberg
Bayern
Nordrhein-Westfalen
20%
Hessen
22%
Niedersachsen
Neue Bundesländer
Source: Statistical Office of the Republic Slovenia
Why Germany?
Germany at a Glance
Key Sectors
Slovene German Business Relations
Who we are?
The German Chamber Network
Global network in 80 countries
with 120 offices
•50,000 member firms
•1,700 coworkers
•98% of the German foreign trade
“AHK – worldwide competent on-site”
AHKs as member
organizations
AHKs as service providers to
companies
AHKs as official
representation of
German industry
and commerce
WHO WE ARE?
The German-Slovene Chamber (AHK Slovenia) is a
respected and recognised brand.
We are a trusted, a non-profit B2B organization with a
strong network both in the Slovenia and Germany.
Currently, over 200 companies and from the GermanSlovene business community are members.
OUR GOALS
Promotion of bilateral trade relations between
Germany and Slovenia;
Mediation, promotion and development of business
relations between both countries;
Lobbying and representation of interests of our
Members in relation to national and other organs and
institutions in both countries;
OUR GOALS
One-stop-shop for Slovenian and German enterprises;
Exclusive platform for Best Practice Exchange
Internationalization of our members as „gateway to
Germany “
Increase of the attractiveness of Slovenia as business
location
Our Chamber: Membership Growth
Founded: 2006
250
First bilateral
Chamber of Commerce
235
227
12 Employees (German-Slovenian)
180,000
212
160,000
193
200
140,000
170
153
120,000
150
131
100,000
Erträge/prihodki
114
80,000
100
60,000
55
40,000
50
20,000
0
0
2006
2007
Anzahl/število
2008
2009
2010
2011
2012
2013
2014*
ACTIVITIES
Company Visits
Round tables with politicians
Lectures
TOP
Der Deutsche Ball
Delegations
Summer picnic
International Business Drink
Best Practice Meetings
Symposia
Conferences
Business Breakfast
Workshops
Trade Fairs
.
OUR INTERNATIONALIZATION SERVICES
Slovene Pavilions at Trade Fairs
Information about German companies
Debt collection in Germany
Legal information about Germany
German VAT returns
Commercial agents
Fact-Finding Missions to Germany
Tax services for Germany and Slovenia
Workshops Market Entry Germany
Starting a business in Germany and Slovenia
Gertrud Rantzen
Predsednica
Telefon: +386 1 252 88 63
E-Mail: gf@ahkslo.si
http://slowenien.ahk.de