The prosperity of German enterprises in the United States prompts heightened investment across the Atlantic, fostering expanded operations in both the U.S. and Germany.
NEW YORK, NY / ACCESSWIRE / February 8, 2024 / The German American Chambers of Commerce (AHK USA) unveiled the 2024 German American Business Outlook (GABO), presenting forecasts on transatlantic economic cooperation. This compilation, drawn from feedback provided by 224 German-owned subsidiaries in the U.S., showcases their positive outlook and intentions for growth.
Key Highlights:
- Almost all (99.5%) German companies operating in the U.S. are optimistic about the absence of a recession in 2024.
- 91% anticipate growth in net sales, with 75% expecting increased investment throughout 2024.
- By 2026, 96% intend to invest in the U.S., with more than 40% planning investments exceeding $5 million and 30% surpassing $10 million.
- Despite 72% aiming to expand their workforce in 2024, 91% face recruitment hurdles. However, by 2028, 82% anticipate workforce expansion.
- Concerns regarding U.S. inflation, market stability, supply chain challenges, and trade tensions have diminished ahead of the 2024 U.S. election.
Jan Heck, Chairman of the German American Chambers of Commerce, expressed enthusiasm for the resilience and growth of German subsidiaries in the U.S., highlighting the robust transatlantic relationship.
Investment and Importance of the U.S. Market:
- For over two-thirds of German companies, the U.S. serves as a significant or primary component of their global operations.
- 40% already possess U.S.-based manufacturing facilities, with 12% planning construction within the next three years.
- Additionally, 19% plan to establish their first U.S. manufacturing facility in the same timeframe.
Workforce Development and Future Shoring:
- German companies prioritize expanding their workforce and investing in training and apprenticeship programs.
- 45% are allocating resources to personnel development initiatives.
- Investments are also earmarked for automation, new office spaces, and digital transformation.
- Sustainable investments have increased by 10% compared to 2023.
Challenges and 2024 U.S. Elections:
- The primary challenge remains recruiting skilled employees, with 57% of companies encountering difficulties.
- 31% advocate for changes in U.S. immigration policies, while 27% seek enhanced support for apprenticeships.
- Concerns have shifted from inflation and supply chain disruptions to potential political uncertainty in the election year.
- Top priorities for German companies include inflation control, interest rate reduction, tax reduction, and bureaucratic streamlining.
The 2024 GABO illustrates a dynamic and innovative German business community in the U.S., poised for growth and advancement. These companies exhibit resilience and adaptability amidst global challenges, committed to investing in workforce development, technological advancement, and sustainable practices. Their strategies reflect a balance of optimism and strategic flexibility, reinforcing the robust German-American economic partnership.
