If one is inclined to think that the global economy is a plot to steal jobs and finances from one country and transfer them to others, pay attention to the mutually-beneficial alliance of German and American commerce. According to Facts about German-American Investment and Trade, from the Representative of German Industry and Trade (RGIT), over 3,000 German-owned and invested firms generate 664,000 jobs and pump $212 billion into the U.S. economy.
For those who feel that this sort of international investment empties plants and office parks and vaporizes jobs, think of the fact that Germany (as of 2008) spends $6.3 billion on R&D in US – the largest amount any foreign country in US and nearly 20% of the overall total, according to RGIT. In turn, "the $50 billion in U.S. merchandise exported to Germany" annually is quite a plant opener and job creator on both sides of the Atlantic!
Multinational Business Cooperation
As one example of beneficial economic cooperation, take the Pittsburgh PA region. According to the Allegheny Conference on Community Development, the region has roughly 70 German-owned and German-invested firms. Three examples tell quite a story. The massive multi-industry Bayer AG has its BayerUS headquarters here and Lanxess (a Bayer spin-off) does as well.
Siemens, the 405,000 employee conglomerate has roughly 16% (65,000) of its staff in the United States, most of them American. The massive engineering, electronics, medical (and multiple disciplines) firm has settled its Pittsburgh headquarters into the storied Union Trust Building. Siemens Pittsburgh also works very closely with the highly-rated University of Pittsburgh Medical Center on respiratory and other products and solutions. The other 68 or so firms run the gamut from specialty metals to plastics extrusion to law firms.
David Murdoch, a senior partner at K&L Gates and Honorary Consul for the Federal Republic of Germany in Pittsburgh, has been tireless in his successful efforts to cement new and existing alliances, coordinate exchanges of business and economic development executives between the countries, and to develop with his fellow honorary consuls from Austria and Switzerland an annual Germanic Night with the Pittsburgh Symphony, in addition to joining the Symphony in several German cities of its European tours to facilitate business meetings.
German Consul General Horst Freitag (New York) has responsibility for four states (Pennsylvania) and Bermuda. During the G-20 Summit in Pittsburgh last year, the Consul General noted that "Pittsburgh ... is home of Bosch and Bayer in North America, as well as of Lanxess AG and Flabeg Solar US – to underline the diversity of German ... [foreign direct investment] in the Pittsburgh region.
To further underline the close Pittsburgh-German business/cultural relationship, Freitag took a moment of his G-20 speech to " thank the Pittsburgh Eric M. Warburg Chapter of the American Council on Germany [of which Honorary Consul Murdoch is president] and all the sponsors for their dedication and ... success in fostering German-American ,,, exchange and relations."
Germany as Third-Largest Investor in American Enterprises
That $203 billion that Germany and over 3,000 of its firms have invested in America makes it the third-largest foreign investor in the United States, according to data crunched by the U.S. Bureau of Economic Analysis and reported in Facts About German-American Investment and Trade.
Nor is German investment only in manufacturing, medical and R&D. The German-American Chambers of Commerce First Quarter 2010 Newsletter notes that "This year, the German foreign chambers of commerce take over the care and advice of German companies from the agro-food sector. ... The following projects are planned for 2010... business travel program to Houston for specialty cheeses, meats, bakery and pasta, fresh and frozen products ,,,; Business Program to Chicago for sweets and snacks ... Cooperation in Boston as part of the BioFach Fair ... marketing [and market research] trip to Atlanta and Chicago for Ingredients and Food Science ... "
American Investment in Germany
United States firms' investment of nearly $100 billion in German industries and professions has already been mentioned. However, a closer look is even more impressive. Per the ever-helpful Facts about German-American Investment and Trade report, one learns that "U.S. Merchandise Exports ...” to Germany totaled $50 billionfor just 2007. Hardly a shock that California topped the other 49 states in exports to Germany, racking up "... $5.6 billion ..." in the same year.
To drill down a bit into these hoards of gigantic dollar figures, German-American Investment and Jobs Fact Sheet , another RGIT backgrounder, ticks off " ... transportation equipment - $15.7 [billion] ..." sold by U.S. companies to their German counterparts, " ... chemicals - $9.5 [billion] ..." and American " ... computers & electronic products - $8.7 [billion] ....." And all this in 2008 alone. Even the "small stuff" begins to sound like real money once one begins to dig! Clearly, both Germany and the United States are benefiting from this still-growing dual flood of investment, sales and M&A deals.
Larry Slater - I have been writing for publication for 35 years -literary magazines, and articles on historic homes, nonprofit boards and antiques In ...
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