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FDI Investment Services and Trends SEDC Meet the Consultants Conference

FDI Investment Services and Trends SEDC Meet the Consultants Conference Atlanta, GA, March 31, 2016. Agenda. The GACC Network The GACC South Consulting Services Site Selection Process German-American Trade FDI Trends 2016 German American Business Outlook. Who We Are - The GACC Network.

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FDI Investment Services and Trends SEDC Meet the Consultants Conference

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  1. FDI Investment Services and Trends SEDC Meet the Consultants Conference Atlanta, GA, March 31, 2016

  2. Agenda The GACC Network The GACC South Consulting Services Site Selection Process German-American Trade FDI Trends 2016 German American Business Outlook

  3. Who We Are - The GACC Network • 3 primary offices • Atlanta • Chicago • New York City • 4 branch offices • Detroit • Houston • Philadelphia • San Francisco) • Among them, we have100+ employees. • 10 volunteer-run chapters and 4 affiliates nationwide. • We represent 3,500 German subsidiaries and 2,500 members. • Representative of Germany Industry and Trade (RGIT) • Represents the governmental interests of Germany in the US. • Washington, D.C. liaison office of the Federation of German Industries (BDI) & the Association of German Chambers of Industry and Commerce (DIHK)

  4. Who We Are - The GACC SOUTH Founded in 1978, the GACC South is the official representative of German Industry and Trade in the Southern United States. In the southern region, we represent 1,500 German subsidiaries and more than 650 member companies. Tennessee North Carolina South Carolina North Texas Main Office:Atlanta, GA Florida Branch Office:Houston, TX Our Partners: AlabamaGermany Partnership (Birmingham, Alabama) German American Business Chamber (Miami, Florida)

  5. What We Do • Membership • Our membership efforts support networking and collaboration opportunities for companies involved with the German-American business community. • 700+member companies • 43 networking events • 24 factory tours • 23 industry-specific conferences • 5 business seminars • 13 partner events with other organizations • With over 100 non-partner events across the region, more than 3,000 people have attended. • Consulting • Our consulting services support small and medium-sized German companies so they are able to successfully enter the US market. • 62business representation clients • 25 market entry projects in 2015 • 5-10 annual site selection projects • 10 federally-funded projects and delegations • 4companies lease office space within the GACC South • Hannover Messe 2016- Supporting with Partner Country USA

  6. Consulting Services U.S. Market Entry & Expansion • General Information Service • Business Partner Search / Address Research • Market Research • Site Selection USA • Location Feasibility Studies Business Representation • Business Development, trade show support • Bilingual customer service, bookkeeping, etc. • Local representation through use of the GACC South address • Office Space • Access to Conference Rooms and Office Services Office Leasing • Basic, Premium or Premium Plus packages customized for the U.S. • Can be used to obtain E-Visas and L-Visas Business Plan • e.g. Automotive, Aerospace, E-Mobility • Food, Health Care • Renewable Energies, Water Technology Industry Specific Conferences & Federally Funded Projects

  7. Site Selection Process Step II Step III Step IV Step V Step I Interview & Focus Outreach & Data Collection First Look Site Visits Wrap-up Interview & Focus Issue RFIs Company Team Visit Short List Finalists • Active listening • Define expectations • Outline site selection process • Issue customized “Re- quests for Information” to Economic Develop- ment Partners (EDP) • Meet with EDP and community reps • Site visits or central meeting place • Visit and evaluate short-listed sites • Narrow down final locations • Final community and site visits • Final discussions Dialogue with EDP Feedback & Analysis One-on-One Negotiations Customized Questionnaire Issue RFPs • Client input • Consensus on goals • Adapt questionnaire into RFI • Letter of Intent • Memorandum of Understanding • Contracts • Improve product output • Client feedback • Further site eliminations • Create short list • Issue customized “Re- quests for Proposal” to Economic Develop- ment Partners (EDP) Receipt of RFI • Fundamental analysis • Eliminate non-starters • Create long list Facility/Environmental Engineers, Attorneys, Tax Accountants Analysis Communication Respect Trust

  8. German-American Trade US Trade Balance in Billion US$ US Imports from Germany in Billion US$ ± 74 + 110,2% ± 29 Source: US Census Bureau (2015): Foreign Trade

  9. German FDI in 2014 22,5 17 Total investment from Germany in Billion US$ Investments in Manufacturing, Billion US$ 14,5 Other Industries, 115.4 10,5 6,4 Manufacturing, 72.95 1 0,75 0,3 Wholesale, 21.6 Finance & Insurance, 14 Source: US Bureau of Economic Analysis (2015): Foreign Direct Investment in the US

  10. Successful German Investments in the South RAUMEDIC, Inc. $26.3 Million 138 Jobs Schwan Cosmetics USA $38 Million 250 Jobs Daimler AG/Mercedes-Benz Vans $500 Million 1,300 Jobs Anton Häring KG $54 Million 800 Jobs Continental $ 1.4 Billion 2,500 Jobs Linde North America $200 Million Mercedes-Benz USA $100 Million 1,000 Jobs Benteler Steel/Tube $ 1 Billion 600 Jobs New Investment Expansion Relocation

  11. German Export Trends • 2016 Market Potential for German Companies (By Industry) • Chemistry • Construction • Environmental Technology • Information & Communication Technology • Energy Sector • Biomedical Engineering • Automotive • Pharmaceutical • Mechanical Engineering • Oil and Gas Source: GTAI Wirtschaftsdaten Kompakt USA 2015, Graphics made independently

  12. 2016 German American Business Outlook German American Chambers of Commerce (GACC) Representative of German Industry & Trade (RGIT) and Roland Berger Strategy Consultants Survey of German companies with US subsidiaries. Evaluation of the current US economic situation, including prognoses, expectations, and opportunities. Published Fall 2015

  13. Survey Results • 87% of companies surveyed report the same or better sales volumes than the year before. Sales • 97% expect positive revenue growth for their own businesses 2016 Personnel Planning • 75% plan for new hires in 2016 • 69% have difficulties filling open positions (technical background, engineering) • 27% plan to introduce new product lines and innovations US Market • 20% plan to invest in Research and Development • 99% anticipate US economic growth in 2016 Industry 4.0 • 28% anticipate positive effects from the automation of production processes. • 33% view data security as one of the greatest challenges Source: German American Business Outlook 2016

  14. 10 Reasons For Failure • No business plan • Inadequate knowledge of the market • Insufficient financing • Unrealistic goals • Incorrect personnel selection for the new market • Disregard for competition • Inappropriate management of intercultural issues • Disadvantageous site selection • Dwindling customer base • Uncontrolled growth

  15. Thank you for your time! German American Chamber of Commerce of the Southern United States, Inc. Michaela Schobert Director, Consulting Services mschobert@gaccsouth.com 404.586.6804

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