ENTERING THE GERMAN MARKET-BUSINESS OPPORTUNITIES FOR UK COMPANIES IN NORTH RHINE-WESTPHALIA (NRW) London, 11th July 2019
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2 | Germany’s economy and its powerful states | 5/1/2019
THE UK AND NRW: HISTORY 1.
OPERATION MARRIAGE 6TH JUNE 1946
Constitutional Assembly 2nd Oct. 1946 at the Düsseldorf Opera House British Military Governor, William Ashbury, NRW‘s
first Minister President, Rudolph Amelunxen)
http://www.ford.de/
H.R.H. PRINCE WILLIAM IN DÜSSELDORF ON 23 AUGUST 2016
H.R.H., Prince William and Hannelore Kraft, State Minister President of North Rhine-Westphalia
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5 | Germany’s economy and its powerful states | 5/1/2019
GERMANY‘S ECONOMY AND ITS POWERFUL STATES 2.
GERMANY: EUROPE‘S LEADING ECONOMY
Source: GTAI, The World Bank 2018
6 | Germany – Europe‘s leading economy | Stand: 7/8/2019
GDP (in € bn) Share of Total GDP (EU 28)
Population in m Share of Total Population (EU 28)
Germany 3,386 21.3 % 82.2 16 %
UK 2,392 15.1 % 66.5 13.0 %
France 2,352 14.9 % 64.7 12.6 %
Italy 1,756 11.1 % 60.5 11.8 %
Spain 1,208 7.6 % 46.4 9.1 %
Netherlands 773 4.9 % 17.3 3.4 %
Poland 496 3.1 % 38.0 7.4 %
Sweden 467 2.9 % 10.2 2.0 %
USA 17,353 327.4
Japan 4,209 126.5
EU 28 15,875 100 % 512.4 100 %
Euro Area 11,570 73 % 341.5 67.0 %
GDP (in € bn)
Share of Total GDP (EU 28)
Population in m
Share of Total Population (EU 28)
Germany
3,386
21.3 %
82.2
16 %
UK
2,392
15.1 %
66.5
13.0 %
France
2,352
14.9 %
64.7
12.6 %
Italy
1,756
11.1 %
60.5
11.8 %
Spain
1,208
7.6 %
46.4
9.1 %
Netherlands
773
4.9 %
17.3
3.4 %
Poland
496
3.1 %
38.0
7.4 %
Sweden
467
2.9 %
10.2
2.0 %
USA
17,353
327.4
Japan
4,209
126.5
EU 28
15,875
100 %
512.4
100 %
Euro Area
11,570
73 %
341.5
67.0 %
NRW – STRONG, DYNAMIC AND CENTRAL IN EUROPA
BASIC DATA 2018 GERMANY NRW
*end of 2017
Area in sq.km 357,386 34,112 Population in million 82.2 17.9 Population density in sq.km 230 524 GDP 3,386 bn € 705 bn € GDP per capita 39,358 € 39,358 € Gainfully employed 44.8 m 9.5 m Private consumption 1,732.2 bn € 372.0 bn € Exports 1,317.7 bn € 196.1 bn € Imports 1,095.9 bn € 241.7 bn € Foreign direct investments* 740.7 bn € 172.5 bn €
7 © NRW.INVEST GmbH, Knowledgebase NRW, 7/1/2019
THE LEADING GERMAN STATE IN GDP
Germany's total GDP in 2018: EUR 3,386 bn
705.1 625.2
511.4 296.2 292.0
149.1 147.1
126.4 120.3
97.1
NRWBavaria
Baden-WürttembergLower Saxony
HesseRhineland-Palatinate
BerlinSaxony
HamburgSchleswig-Holstein
Source: IT.NRW, March 2019
© NRW.INVEST GmbH, Knowledgebase NRW, 6/1/2019 8
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| Germany's no. 1 investment location | 5/1/2019
KEY INDUSTRIAL SECTORS 3.
TOP LOCATION FOR MANUFACTURERS AND SUPPLIERS
10 © NRW.INVEST GmbH, Knowledgebase NRW, 6/1/2019
Source: IT.NRW; the figures refer to companies with 20 and more employees
49.6 44.1
43.3 40.0
34.3 33.6
31.5 16.3
8.2 8.1
Mechanical engineeringChemicals
Metal production and processingFood, beverages
AutomotiveMetal products
Electrical engineering, electronicsRubber, plastic
Glass, ceramics, non-metallic mineralsCoke and refined petroleum products
Sales 2018 (in EUR bn)
UK IS ONE OF NRW’S MOST IMPORTANT TRADING PARTNERS
NetherlandsChina
FranceBelgium
USAItaly
PolandUK
AustriaSpain
SwitzerlandCzech Rep.
Japan
The most important trading partners of NRW in 2018 (in EUR billion)
Source: IT.NRW.March 2019
Total imports: EUR 241.7 billion Total exports: EUR 196.1 billion
© NRW.INVEST GmbH, Knowledgebase NRW, 6/1/2019 11
63.4 40.3
30.7 24.4
22.9 21.4
20.4
15.8
20.3 16.2
13.2
9.1 12.7
NRW: HOME OF THE WORLD MARKET LEADERS 4.
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| Home of the world market leaders | 5/1/2019
A GLOBAL PLAYER‘S PLACE
20 of the 50 top-selling companies in Germany are based in NRW
13 © NRW.INVEST GmbH, Knowledgebase NRW, 6/1/2019
http://www.bertelsmann.de/
SMEs – THE BACKBONE OF THE ECONOMY
© NRW.INVEST GmbH, Knowledgebase NRW, 6/1/2019
712,100 small and medium-sized companies
• They account for 99.5 % of all the companies in the state.
• They employ 78.8 % of all company employees subject to social insurance contributions.
• They provide 82.4 % of all training positions in NRW.
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NRW: GERMANY‘S NO. 1 INVESTMENT LOCATION 5.
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| Germany's no. 1 investment location | 5/1/2019
GERMANY'S NO. 1 INVESTMENT LOCATION
Volume of foreign direct investments in Germany 2017 (in EUR billion)
172.5
163.5
137.5
99.7
60.2
29.7
28.3
NRW
Hesse
Bavaria
Baden-Württemberg
Hamburg
Lower Saxony
Berlin
Source: Deutsche Bundesbank 6/2019, data: as of end of 2017
| Germany’s No. 1 investment location | data as of: 7/1/2019 16
AROUND 20,000 FOREIGN COMPANIES IN NRW
Well-known foreign companies in NRW
• 21,6 % of the foreign companies are based in NRW
• Foreign investors provide work for about 1 million persons
• Major investor countries are: the Netherlands, USA, Switzerland, Great Britain, France, VR China, Austria, Japan, Italy, Russia and Turkey.
• Approx. 1,500 UK companies in NRW • Examples: Vodafone, Rentokil, Dyson,
Johnson Matthey, Lush, GKN, BP, JSP Safety Products, Webtec etc.
17 © NRW.INVEST GmbH, Knowledgebase NRW, 9/11/2018
THE UK ARE NRW’S 3RD MOST IMPORTANT INVESTOR COUNTRY
The biggest foreign investor countries in NRW (in EUR billion)
65.6
32.2
11.8 10.8 9.7 9.6 7.6 5.9 5.2 4.7 4.5 2.3 1.6
Source: Deutsche Bundesbank 5/2018, data: as of end of 2016; special case Luxemburg: mainly financial investments
© NRW.INVEST GmbH, Knowledgebase NRW, 6/1/2019 18
EUROPE’S GATEWAY WITH AN EXCELLENT TRANSPORT INFRASTRUCTURE 6.
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| Europe's gateway with an excellent transport infrastructure | 5/1/2019
OVER 200 NONSTOP FLIGHTS FROM 14 UK DESTINATIONS TO DÜSSELDORF
216 nonstop flights per week from the UK to Düsseldorf
Route Airline Summer
2018 week 25 (frequency)
Birmingham Flybe Germanwings 23 18
Bristol bmi regional 6
Cardiff Flybe 1 Edinburg Eurowings 3
Guernsey Flybe Eurowings 1 1
Glasgow Eurowings 6
Jersey Eurowings 2
Leeds/Bradford Flybe 6
London City Flybe BA Cityflyer 16 20
London Heathrow British Airways Eurowings 36 28
Manchester Flybe Eurowings 18 18
Newcastle Eurowings 6
Newquay Eurowings 1
Southampton Flybe 6
Total max 216 Sources: Düsseldorf International Airport, April 2018 (sample week June 2018)
MAN
NCL
NQY
LBA
BHX
JER
GCI
GLA
CWL
BRS
LCY LHR LGW
SOU
EDI
HOW TO FIND PROPERTY? 7.
ON THE MARKET FOR OVER 55 YEARS
| Basispräsentation NRW.INVEST | Stand: 01.05.2018 22
NRW.INVEST GmbH
• Wholly owned subsidiary of the State of NRW
• Head office in Düsseldorf, founded 1960 • 74 employees
- 37 in Düsseldorf - 37 in the international offices
• Chairman of the Supervisory Board State Secretary Christoph Dammermann, Ministry of Economic Affairs, Innovation, Digitization and Energy of the State of NRW
• CEO Petra Wassner
16 INTERNATIONAL OFFICES IN IMPORTANT LOCAL MARKETS #NRWORLDWIDE
| Basispräsentation NRW.INVEST | Stand: 01.05.2018 23
FAST TRACK PACKAGE FOR UK COMPANIES IN NRW
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Free services include
• Getting you started An experienced key relationship manager will help you get your business established in NRW
• Professional Advice Access to a network of legal, accounting professionals
• Premises Access to office, production and warehouse space
• Free information service All you need to make your decision: - labour costs, availability and skills, demographics, links to academic and business networks
| Service for Investors | 5/1/2018
FAST TRACK PACKAGE FOR UK COMPANIES IN NRW
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Free services include
• Access to qualified labour Help in finding and recruiting people
• Free advice on funding sources, including grants and incentive programmes
• Marketing support Providing a platform for your company to advertise your products and services through events, publications, etc.
| Service for Investors | 5/1/2018
HELPING CUSTOMERS TO IMPROVE PRODUCTIVITY OF THEIR HEAVY MACHINERY…
• Based in St. Ives, Cambridgeshire, Webtec Products Ltd is a world leader in the design and manufacture of customised hydraulic solutions in low-to-medium volume on short lead times.
• For over 50 years Webtec has been helping companies worldwide in the Industrial, Mobile, and Agricultural sectors improve the productivity of their machinery.
• Webtec employs 60 people worldwide and generates a revenue of 10m EUR
No. xxx
www.webtec.com
WEBTEC (EUROPE) GMBH, OPENS IN LEVERKUSEN IN MAY 2019
No. 386
Martin Cuthbert, Managing Director, Webtec (Europe) GmbH “Webtec has been serving German, Swiss and Austrian customers for over 25 years via our virtual office in Dortmund”. In late 2018 we felt it was the right time to establish our European Sales & Support office in Germany. Having a company registered in Germany will ensure that our future trading continues to be seamless and we will be ideally placed to offer customers a high level of local support. In May 2019 we opened our office in Leverkusen where we now have a small team, including our new Business Development Manager and we are currently recruiting for an inside Sales person to join our team.
Martin Cuthbert, Managing Director
THE SUPPORT OF NRW.INVEST WAS KEY TO A SMOOTH SETUP
Why NRW? 1) Proximity to our customers 2) World-class engineering talent 3) Fantastic logistics & access to EU
“Dagmar at NRW.INVEST’s advice was invaluable in helping us find suitable suppliers to establish our company, recruit our business development manager as well as arranging multiple visits around NRW to help identify the best place to set up our office”.
THE WEBTEC CASE STORY
March 2018: • First contact with Webtec. • Information on business opportunities in NRW • Martin Cuthbert, MD, Webtec, asks NRW.INVEST to start a property search • Sales Office and small warehouse in a technology centre for 1-2 people with
expansion potential
April 2018 • Visit to Düsseldorf with site viewings in Düsseldorf and Neuss
May 2018 • Webtec needs more time because of other priorities
June 2018 • New property search and site viewings in the Greater Cologne and Aachen
region
THE WEBTEC CASE STORY
September 2018 Webtec asks for help in recruiting people. List of recruitment agencies provided.
December 2018 Webtec meets candidates at NRW.INVEST office in Düsseldorf
January 2019 Webtec employs Sales Manager (for May).
March 2019: New property search and site viewings in Leverkusen
April 2019 Webtec decides to establish their German HQ in Leverkusen
May 2019 Webtec starts operation in NRW.
Welcome to North Rhine-Westphalia and Leverkusen!
OUR REPRESENTATIVE IN THE UK
Andrew Harfoot Representative +44 1732 375412 [email protected]
Economic Development Agency of the German State of North Rhine-Westphalia (NRW) 9 Tonbridge Chambers, Pembury Road Tonbridge, Kent TN9 2HZ, United Kingdom
| Contact | 5/1/2019 34
FEEL FREE TO CONTACT US
NRW.INVEST GmbH Economic Development Agency of the German State of North Rhine-Westphalia (NRW) Völklinger Straße 4, 40219 Düsseldorf, Germany
Dagmar Wülknitz Head of Business Unit UK, France, Italy, Nordic Countries
+49 211 13000-147 [email protected] www.nrwinvest.com
Entering the german market-Business opportunities for UK companies in north Rhine-Westphalia (NRW)�London, 11th July 2019The UK and NRW: HistoryOperation Marriage 6th June 1946H.R.H. Prince William in Düsseldorf�on 23 August 2016germany‘s economy and its powerful statesGermany: Europe‘s leading economyNRW – sTrong, DYNAMiC aND cENTRAL IN EUROPAThe leading German state in GDP Key industrial sectorsTop location for manufacturers and suppliersUK is one of NRW’s most important trading partnersNRW: HOME OF THE WORLD MARKET LEADERSA global player‘s placeSMEs – the backbone of the economyNRW: Germany‘s No. 1 investment locationGermany's no. 1 investment locationAround 20,000 foreign companies in nrwThe UK are NRW’s 3rd most important investor countryEUROPE’S GATEWAY WITH AN EXCELLENT TRANSPORT INFRASTRUCTURE Over 200 nonstop flights from 14 UK destinations to DüsseldorfSlide Number 21On the market for over 55 years16 international offices in important local markets �#NRWorldWideFast track package for UK companies in nrwFast track package for Uk companies in nrwHelping customers to improve productivity of their heavy machinery…Webtec (Europe) GmbH, opens in Leverkusen in May 2019The support of NRW.INVEST was key to a smooth setupThe Webtec Case StoryThe Webtec Case StoryOur representative in the UKSlide Number 34
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