GACCoM 2011/2012 - (GACCoM) Chicago

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16 Effects on business sales volumes and prices in Effects 2009-2011 on business s GERMAN FIRMS IN THE u.S. CONFIDENT DESPITE POLITICAL AND ECONOMIC uNCERTAINTIES - COMPANIES CONTINuE TO INNOvATE, Effects on GROW, business' AND sales HIRE volumes and Effects prices on in business' 2009-11 I STATE OF THE BUSINESS In its third consecutive year, this survey conducted by the GACCs, the Representative of German Industry and Trade, and Roland Berger Firms Strategy experienced Consultants has strong become top-line an institution growth in German-American as CHANGE IN SALES VOLUMES IN 2009-11 business. In fall 2011, we once again approached CHANGE IN 1,900 SALES VOLUM headquarters of German-owned subsidiaries in the U.S. to review the ending year and ask for their expectations and strategic plans going forward. Firms sales volume experienced has continued strong top-line to increase growth and as sales volume has 49% ∑ 2011: 72% 44% 45% price levels have recoverd 38% 44% 38% 27% continued to increase and price levels have recovered 23% 17% 23% 14% u FIRMS ExPERIENCED STRONG TOP-LINE GROWTH 9% 12% 6% 10% 14% 6% Effects on business sales volumes and prices in 2009-2011 2% 6% 0% 2% AS SALES vOLuME HAS CONTINuED TO INCREASE Much worse Worse No change Better Much better Effects AND on PRICE business' LEvELS sales HAvE volumes RECOvERED and prices in 2009-11 Much worse Worse CHANGE IN SALES VOLUMES IN 2009-11 38% I 6% 2% STATE OF THE BUSINESS In response to this top-line growth, companies Much worse In increased response their to workforce this top-line and 67% growth, expect companies further increased their workforce and 67% expect further headcount growth for 2012 2009 > On 2010average, 2011 firms have CHANGE headcount IN SALES PRICES growth IN 2009-11 for 2012 experienced a NEUTRAL Source: German American Business Outlook 2009, 2010, 2011 IMPACT ON SALES 52% u IN RESPONSE 47% TO THIS TOP-LINE 47% PRICES 42% GROWTH, COMPANIES Changes in headcount by company size [employees] Insights DID YOU KNOW? INCREASED 24% THEIR WORkFORCE AND 28% 21% 67% ExPECT > However, an ongoing trend 19% Changes FuRTHER HEADCOuNT in headcount GROWTH by company 9% FOR size 2012 [employees] in sales price change 2% 3% 1% 0% 2% 3% indicates CONTINUING better Much worse Worse No change Better Much better RECOVERY volumes IN PRICES 0-50 51-500 501+ INSIGHTS Insights 45% IncreaseREBOUND 61% from sales 64% volumes drop in 2009 has further INTENSIFIED throughout 2011, with more 75% firms experiencing 73% 71% 82% better volumes On average, firms have experienced a NEUTRAL IMPACT ON SALES PRICES 43% However, an ongoing trend in sales price change indicates No CONTINUING RECOVERY IN PRICES 38% 32% change 10% 13% 23% 21% Reduction 12% 4% 8% 13% 4% 8% 2011 (planned) 2011 (actual) 2012 (planned) Source: German American Business Outlook 2010, 2011 Insights 44% 23% 14% Worse 2009 2010 2011 9% 6% No change Source: German American Business Outlook 2009, 2010, 2011 12% 10% 2011 (planned) 49% 45% Better 2011 (actual) 27% 17% 0% Much better 2012 (planned) ∑ 2011: 72% I 2011 (planned) Firms sales volume experienced has continued strong top-line to increase growth and Firms sales volume experienc as has s price levels have recoverd price levels have r continued to increase and price continued levels have to incr re CHANGE INSIGHTS IN SALES PRICES IN 2009-11 Much worse > REBOUND 47% from sales 42% volumes drop in 2009 has further INTENSIFIED 24% 21% throughout 2011, with more 1% firms experiencing better volumes Worse 2011 (actual) STATE OF THE BUSINESS Firms experienced strong top-line Firms growth experienced as 52% 47% 47% 28% 19% 24% 21% 2% 3% 9% 2% 3% 0% 1% 2% 3% No change > Workforce has increased by 5 an AVERAGE OF 7% IN 2011 – reaching almost 10% for Automotive and Manufacturing firms STATE OF THE BUSIN CHANGE IN SALES PRICE Better Much worse Much better Worse 2009 2010 2011 REBOUND from sales volumes drop in 2009 has REBOUND further from INTENSIFIED throughout 2011, with more firms experiencing INTENSIFIED thro better volumes On average, firms have experienced a NEUTRAL On IMPACT average, firms ON SALES PRICES ON SALES PRICE However, an The ongoing Directory trend of in Subsidiaries sales price change of German However, indicates Firms an ongo CONTINUING RECOVERY IN PRICES in the U.S. is a unique resource CONTINUING compiled REC and published jointly by the GACCs. Detailed 73% 27% 64% 36% information on over 3,500 U.S. operations of German firms is available online as well as in an > Last year, 69% OF FIRMS Annual Print Edition. This Who’s Who of German WERE PLANNING to business in the U.S. offers our members and increase headcount in 2011, clients a perfect platform to find new business but ONLY 55% ACTUALLY partners or leverage their company’s profile within FOLLOWED THROUGH the German-American business community and beyond. > Firms It is also INTEND an invaluable TO resource for the Chambers RECOUP themselves, THIS HIRING allowing us to solicit 2012 (planned) feedback DELAY from in hundreds 2012 – on of firms in surveys such as average, the Annual 67% German of total American firms Business Outlook, plan making to increase the directory their an important pillar of our mission workforce to represent German businesses in the United States. I Source: German American Business Outlook 20 Insights 7
Looking I STATE OF forward, THE BUSINESS surveyed firms are very optimistic about their own businesses and confident Looking forward, about the surveyed U.S. economy firms are very optimistic about their own businesses and confident about the U.S. economy u LOOkING FORWARD, SuRvEyED FIRMS ARE vERy OPTIMISTIC Outlook for the coming year 29% ABOuT THEIR OWN BuSINESSES AND CONFIDENT ABOuT 2% 2% THE u.S. ECONOMy Unclear Outlook for the coming year I STATE OF THE BUSINESS U.S. GROWTH OUTLOOK Following this optimism, firms expect to keep their focus on growth-oriented 91% 89% initiatives ∑ 2011: 93% and 62% double-dip recession Following increasing this workforce optimism, firms expect to keep their focus on 29% > 18% Overall, 48% of 8% 14% 2% 2% 2% 4% 1% 5% 5% 5% 7% 4% 7% growth-oriented initiatives and increasing workforce respondents are expecting Unclear ContractionStrategic initiatives Flat to moderate growth OWN BUSINESS GROWTH OUTLOOK Strong growth the Unclear ECONOMY TO Contraction GROW moderately (43%) 2009 or strongly 2010 (5%) 2011 Source: German American Business Outlook 2009, 2010, 2011 > Firms are even MORE Flat to moderate growth Strong growth 69% 59% 61% 18% 14% 5% 7% 4% 7% +24 +7 Unclear Contraction Flat to moderate growth 2009 60% 2010 2011 59% 62% +6 53% +12 55% Source: German American Business Outlook 2009, 2010, 2011 49% 22% 25% 9% -1 Strong growth 54% 57% 53% OPTIMISTIC ABOUT THEIR OWN OUTLOOK INSIGHTS compared to U.S. Insights Insights economy > German-American firms are > 86% expect 96% DO moderate NOT GROWTH-ORIENTED foresee to a double-dip recession and strong growth FOR THEIR OWN BUSINESS plan to engage both in -1 TO GROW moderately short-term (43%) and long-term or strongly (5%) 9 strategic initiatives 40% 36% 34% 34% 35% 33% 34% OUTLOOK u> FOLLOWING compared Focus remains to U.S. on economy THIS OPTIMISM, 26% III WORKFORCE DILEMMA FIRMS introducing ExPECT new product TO kEEP THEIR Insights 22% 86% expect moderate to strong growth FOR THEIR lines, but INCREASING In response to OWN a potential BUSINESS FOCuS ON shortage GROWTH-ORIENTED of skilled III WORKFORCE DILEMMA WORKFORCE has seen 96% DO NOT foresee a double-dip recession INITIATIvES AND INCREASING workforce, German-American the biggest jump firms - firms plan mostly rely Overall, 48% of respondents are expecting the In ECONOMY response to a potential WORkFORCE on in-house training to add more shortage employees in of skilled Increasing TO GROW Entering moderately new Introducing (43%) or newstrongly Investment (5%) Process Investment workforce, German-American 2012 – an average firms growth mostly rely workforce Firms geographies are even MORE product OPTIMISTIC lines in PPE ABOUT THEIR production/ OWN in R&D of 10% vs. 7% in 2011 OUTLOOK compared to U.S. economy on optimization in-house training Measures for potential skill > shortages Interestingly, on all the firms U.S. labor market implemented their 53% 86% expect 35% moderate to strong 55% growth FOR 33% THEIR 49% 34% OWN BUSINESS STRATEGIC INITIATIVES Measures for potential skill shortages AS PLANNED on LAST the U.S. YEAR labor market Strategic initiatives Planned for 2011 Taken in 2010 Taken in 2011 Planned for 2012 Source: German American Business Outlook 2009, 2010, 2011 Insights U.S. GROWTH OUTLOOK 10 MEASURES [%] TRAINING BENEFITS German-American firms are GROWTH-ORIENTED and Others plan to engage both in short-term and long-term strategic initiatives Do not have Focus remains on introducing new product lines, but in-house programs INCREASING WORKFORCE has seen the biggest jump - firms plan to add more employees in 2012 – an Collaboration average with growth of 10% vs. 7% in 2011 community colleges Planning in-house Interestingly, all firms implemented their STRATEGIC training or cooperation INITIATIVES AS PLANNED LAST YEAR with community college In-house programs 1) 8% Do not have 33% in-house programs Collaboration with u IN RESPONSE TO A 33% 8% community colleges POTENTIAL SHORTAGE 4% Planning in-house OF SkILLED WORkFORCE, training or cooperation 8% GERMAN-AMERICAN FIRMS 4% with community college MOSTLy RELy ON IN-HOuSE In-house TRAINING 47% programs 47% In response to a potential shortage of skilled wo In American response firms to a mostly potential rely shortage on in-house of skilled training wo American firms mostly rely on in-house training Measures for potential skill shortages on the U.S. labor marke MEASURES [%] TRAINING BENEFITS Others1) 8% 9% Lower risk of injuries THE FuLL RESuLTS Source: German OF American THE SuRvEy Business Outlook ARE 2011AvAILABLE AT WWW.GACCOM.ORG/GABO 1) Example: bring technicians from Germany Source: German American Business Outlook 2011 Outlook for the coming year 8% OWN INSIGHTS BUSINESS GROWTH OUTLOOK > 96% DO NOT foresee a Outlook for the coming year 2% Contraction 4% 62% 18% 9% 18% 25% 25% 47% 91% CHANGE IN SALES VOLUMES IN 89% 38% 6% 1% 2% Lower employee Lower turnover risk rates of injuries Lower employee turnover Increase rates productivity Increase productivity Higher product/ service quality Higher product/ service quality 5% ∑44% 2011: 93% 5% Flat to Much worseStrong growthWorse moderate growth 59% 69% Effects on business' sa CHANGE IN SALES PRICES > 61% Effects on business sale 22% 2% 3% 9% 1% 23% 14% 25% 24% 21% Much worse Worse REBOUND from sal INTENSIFIED throug Overall, 48% of respondents are expecting the better ECONOMY volumes On average, firms h Firms are even MORE OPTIMISTIC ABOUT THEIR ON SALES OWN PRICES 47% 2009 2010 2011 Source: German American Business Outlook 2009, However, an ongoing CONTINUING RECO Measures for potential skill shortages on the U.S. labor marke 1) Example: bring technicians from Germany Insights 47% 17 > > >
Page 1 and 2: GACCoM 2011/2012 german American ch
Page 3 and 4: LETTER FROM THE PRESIDENT & CEO The
Page 5 and 6: THROuGHOuT GERMANy: In Germany, the
Page 7 and 8: TA u MICHIGAN GACCoM’s Michigan C
Page 9 and 10: yOuR CONTACTS OuR SERvICES BuSINESS
Page 11 and 12: u BE AT THE CuTTING EDGE OF TECHNOL
Page 13 and 14: u PROMOTING DIALOGuE AND INNOvATION
Page 15: OuR NETWORk AS A RESOuRCE FOR PROBL
Page 19 and 20: STAFF 2011/2012 INTERNS Thank you t

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