Untitled-2 [] · Title: Untitled-2 Author: gabo Created Date: 5/24/2012 3:24:44 PM
GABO 2019 - GABC Boston€¦ · GABO. 2019. Growth expectation for your business in 2019....
Transcript of 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%
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
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%
Ease of receiving work visas 2018
Strongly worsened Slightly worsened No change Positive
WORKFORCE AND VISA CHALLENGES PART 2Workforce 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%
Ease of receiving work visas 2018
Strongly worsened Slightly worsened No change Positive
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%
M&A executed in 2018 M&A planned in 2019
50%
37%
Diversification executed in 2018 Diversification planned for 2019
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
Very negative Negative No impact Positive
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%
Very negative Negative No impact Positive
54%
13% 4%29%
Very negative Negative No impact Positive
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