By Andrea Barbara Schuessler
Almost 60 percent of U.S. companies operating in Germany are dissatisfied with the country's high energy costs and more than 30 percent with high labor costs and corporate taxation, according to the 2018 Transatlantic Business Barometer released by the American Chamber of Commerce in Germany April 20 in cooperation with Roland Berger Strategy Consultants.
U.S. companies also see a need to improve the digital infrastructure and the framework conditions for startups and entrepreneurship in Germany, the survey said.
On the other side of the ledger, 91 percent of U.S. companies investing in Germany appreciate the country’s well-trained staff base, its potential as a sales market, and the quality of the physical infrastructure, and 61 percent plan to expand their business activities in Germany in the next three to four years, AmCham said.
In 2017, three quarters of U.S. companies in Germany increased their revenues and investment and employment, the survey said, and in 2018, 82 percent expect an increase in revenue and 50 percent expect to increase employment and investments.
“The results show that both Germany and the U.S. are still highly valued investment locations despite the current political dissonance,” Bernhard Mattes, president of AmCham Germany, said April 20. “Germany appeals to U.S. companies with its stable economy and strong domestic consumption. On the other side of the Atlantic, measures such as the U.S. tax reform have increased U.S. attractiveness for German investors.”
Across the Ocean
Two-thirds of German companies operating in the U.S. are pleased with the potential for U.S. sales, corporate taxation rules, the opportunities for start-ups and entrepreneurship, and the quality of the digital infrastructure, according to the AmCham report. Only 38 percent of German companies operating in the U.S. are comfortable with the investment environment, however, and approximately half are concerned about the potential for political instability.
“The stability of transatlantic economic relations must not be jeopardized,” Mattes said. “Protectionist measures such as the announcement of one-sided import tariffs contribute to the uncertainty of the economy and are the wrong step. Business and politics must now work for free and fair trade and seek dialogue. The Transatlantic Business Barometer clearly confirms that the strength lies in the German-American interaction. Germany can learn a lot from Americans’ IT affinity and entrepreneurial spirit and serves as a role model for the U.S. with its dual training system.”
published in Bloomberg BNA May 9th, 2018