Almost 4,800 companies in the United States benefit from German investment; most of these are affiliates of small- and medium-sized enterprises. With 674,000 workers, German companies are the fourth-largest foreign employer in the United States, accounting for almost 10 percent of the total 6.8 million U.S. jobs created by foreign affiliates. More than ten percent of foreign direct investment in the United States comes from Germany, with the manufacturing sector benefitting most. German companies, together with the German American Chambers of Commerce, play an important role through their apprenticeship programs in educating and training high-skilled workers within the manufacturing sector and beyond.
Chicago: Hub for German Business
Germany ranks fourth on the list of Illinois’ most important export markets. 42,000 workers were employed by German owned affiliates in 2015, making Illinois the second-ranked state in U.S. employment by German-owned firms. There are an estimated 200+ German companies at 500 locations in greater Chicago, including Siemens, Deutsche Telekom, DHL, Fresenius, K+S AG (Morton Salt), Aldi, Continental, and Lufthansa. Illinois Governor Bruce Rauner underlined that Germany is a strong partner for the United States and his state in particular. He further pointed to the long-standing relationship with the German American Chamber of Commerce of the Midwest (GACC Midwest). Alongside Chicago and a branch office in Detroit, the Chamber has four chapters in Colorado, Michigan, Minnesota, and Wisconsin.
The skills gap is a major obstacle when it comes to future investments in the United States. According to the German American Business Outlook Survey 2018, 87 percent of companies have reported difficulties in finding employees with the adequate skills to pursue their growth strategies. “I was impressed by the Industry Consortium for Advanced Technical Training (ICATT), which brings high-tech apprenticeships based on the German dual education system to Midwestern employers,” commented Stefan Mair, member of the BDI executive board, on the apprenticeship program facilitated by GACC Midwest. Visiting the company Wittenstein, North America, the BDI delegation learned about the opportunities the ICATT apprenticeship program offers, as well as the challenges dual education in the US is facing.
Chicago, which is known for its vibrant arts and music scene, is also a hub for innovation. One of these hubs is the Chicago Connectory, a 19,000 square-foot space on the fifth floor of the Merchandise Mart. The Connectory was founded in partnership between the German technology company Robert Bosch and tech hub ‘1871’. Devoted to the Internet of Things, it offers a collaborative ecosystem that is centered on networking and problem solving. “You could feel the energy in the air; it was a very inspiring atmosphere,” noted Stormy-Annika Mildner, head of department External Economic Policy, BDI, during the visit.
Atlanta: Important Trade Partner in the South
The second stop of the BDI delegation was Atlanta, Georgia. Germany again ranks fourth regarding the state’s most important export markets, as well as employment by foreign-owned affiliates (2015). Georgia is a pulsing Southern commercial artery, with a diversified economy, low-cost energy, enviable logistics assets, and an open-minded philosophy. According to the German American Chamber of Commerce of the Southern United States, Inc. (GACC South), Germany ranks first among foreign countries regarding the number of facilities in Georgia, nearly one-third of which are manufacturing operations: Mercedes Benz USA recently opened its new headquarters there. Companies such as Siemens, Porsche, Kühne + Nagel, and several others have a strong presence in this vibrant Southern city.
GACC South supports German business in the region. Headquartered in Atlanta, Georgia, with a branch office in Houston, Texas, the GACC South serves eleven Southern states. The Chamber plays an important role in skills and training as a part of the VETnet, the German Chambers worldwide network for cooperative work-based Vocational Education and Training, which implements dual training elements into the educational systems of selected countries. “Visiting Grenzebach Corp. and the West Georgia Technical College-Coweta Campus allowed us to see apprenticeship programs put into practice in the United States. It was heartening to see the dedication and enthusiasm with which the young participants talked about their experiences,” stated Daniel Andrich, President and CEO of the Representative of German Industry and Trade in Washington, DC. (RGIT), summing up the meeting. The meetings with business, city, and state representatives from both Chicago and Atlanta underlined the strong partnership between Germany and the United States.
And yet: “There is still room for deepening this relationship,” emphasized Stormy-Annika Mildner. The public relations initiative “Wunderbar together: Germany and the U.S.”, carried out by the German Foreign Ministry and the Goethe Institute, with the support of BDI, is an ideal opportunity to do so.
